San Diego – (Businesswire): Haeggquist & Eck, LLP, a leading shareholder rights litigation firm, is investigating potential securities fraud at Vitamin Shoppe, Inc. (“Vitamin Shoppe”) (NYSE: VSI). Vitamin Shoppe, headquartered in North Bergen, New Jersey, is a retailer and direct marketer of nutritional products in the United States, including vitamins, minerals, specialty supplements, herbs, homeopathic remedies, and beauty products.
The investigation focuses on whether Vitamin Shoppe artificially inflated the price of the Company’s stock by issuing materially false and misleading statements regarding the Company’s purported ongoing improvements, profitability trends, and financial results. Specifically, Vitamin Shoppe announced on March 1, 2017 that the Company was on track to deliver “fully diluted earnings per share in the range of $1.95 – $2.20” during FY17. However, unbeknownst to investors, Vitamin Shoppe had improperly delayed recognizing a $168 million impairment to the Company’s goodwill, which materially overstated its income and assets. Meanwhile, certain top officers and investors immediately took advantage of the inflated stock price by engaging in insider trading.
On May 10, 2017, Vitamin Shoppe unexpectedly announced a dramatic 45% reduction in FY17 EPS guidance, and the stock price declined by one-third that day. Then on August 9, 2017, Vitamin Shoppe again shocked the market by announcing it was taking a $168 million impairment charge on the goodwill being carried on its books for its retail segment, and that as a result, Vitamin Shoppe would report a GAAP loss of $6.73 per share in the second quarter of 2017.
On this news, Vitamin Shoppe’s share price plunged even further, causing harm to investors.
Vitamin Shoppe’s Shareholders Have Legal Options
Haeggquist & Eck, LLP is a nationally recognized leader in shareholder rights law. The firm represents individual investors in shareholder derivative lawsuits, and members of the firm have helped shareholders recover more than $1 billion of value for themselves and the companies in which they have invested.
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