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Securities Fraud Class Action Meets Legal Test

Nature's Sunshine Products' motion to dismiss a class action lawsuit has been denied. U.S. District Judge Ted Stewart decided on Monday that there was adequate evidence that the company might be guilty of allegations of securities fraud, cover-up, and insider trading. Stewart ruled against Nature's Sunshine on all counts, except he did decide to limit the scope of claims to those occurring on or after March 15, 2005.

Securities Fraud Class-Action Suit Meets Legal Test

Steven Anreder, a spokesman for Nature's Sunshine, said that the ruling was routine and that the company was not concerned. "We disagree with the allegations in the complaint and we expect to successfully defend them on the merits," Anderer said. Investors who bought Nature's Sunshine stock based on impressive financial reports say they were misled by company officials who sold off $2.9 million of their own stock before the share price dropped.

Related Links:
Legal View: Securities
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Posted by Patricia Bowling on May 29, 2007 06:52 PM |

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