NEW YORK, Jan. 15, 2016 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Natural Health Trends Corp. (“Natural Health” or the “Company”) (Nasdaq:NHTC) in the United District Court for the Central District of California on behalf of a class consisting of all persons or entities who purchased Natural Health securities between March 6, 2015 through January 12, 2016, inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
The Complaint alleges that the Company issued false and misleading statements to investors and/or failed to disclose that: (1) the operations of Natural Health’s Chinese entity is not in compliance with applicable Chinese laws; and (2) as a result, Natural Health’s statements about business, operations, and prospects, were false and misleading and/or lacked a reasonable basis at all relevant times.
On January 7, 2016, Seeking Alpha published a post indicating that an investigative report published in China revealed that the Company is being investigated by Chinese authorities. On January 11, 2016, the Company issued a press release stating that although it had heard of an online posting alleging a government investigation, it was unaware of such an investigation. The same day, analyst firm GeoInvesting LLC issued a report about the Company. According to the report, a neighboring office employee stated that uniformed authorities visited Natural Health’s Beijing office around Christmas and seized property, and this visit corroborates the Seeking Alpha post that it is under investigation for running an illegal multi-level marketing business in China. The report further stated that on December 28, 2015, the Company posted a special notice on its website warning its distributors to stop using its name, and on January 8, 2016, announced the temporary suspension of its distributor website for maintenance. On January 12, 2016, GeoInvesting LLC issued another report about the Company asserting that news broke on several reputable Chinese media sites claiming the company had been raided and was under investigation. Since news broke of the alleged investigation by Chinese authorities, Natural Health stock fell $9.85 per share, or nearly 34%, to close at $19.18 per share on January 12, 2016.
If you wish to serve as lead plaintiff, you must move the Court no later than March 14, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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