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Robbins Geller Rudman & Dowd LLP Files Class Action Suit against NBTY, Inc.

^{Published on 2010-05-11 14:45:15 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/nbtyinc/ ]) today announced that a class action has been commenced in the United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of NBTY, Inc. (aNBTYa or the aCompanya) (NYSE:NTY) between November 9, 2009 and April 26, 2010 (the aClass Perioda), seeking to pursue remedies under the Securities Exchange Act of 1934 (the aExchange Acta).

"adversely affected by the Company's increased television advertising to support its Nature's Bounty, Osteo Bi Flex, Ester C and Pure Protein brands."

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 631/367-7100, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this Class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/nbtyinc/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges NBTY and certain of its officers and executives with violations of the Exchange Act. NBTY manufactures, markets, and retails nutritional supplements in the United States and worldwide.

The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Companya™s true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose: (i) that the Company was experiencing a significant disruption in its private label business and a related decrease in demand for its private label products; (ii) that the Companya™s advertising costs were escalating far in excess of the Companya™s internal forecasts; and (iii) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.

On April 27, 2010, the Company issued a press release announcing its financial results for the fiscal second quarter of 2010, the period ended March 31, 2010. The Company announced that its private label sales accounted for only 38% of wholesale sales in the fiscal second quarter of 2010, compared to 42% of wholesale sales in the fiscal second quarter of 2009 a" a decline of 4%. Moreover, according to the press release, net income was aadversely affected by the Company's increased television advertising to support its Nature's Bounty, Osteo Bi Flex, Ester C and Pure Protein brands.a

In response to the unexpected rise in advertising costs and a slowdown of sales in its private label business, shares of the Companya™s stock fell $9.66 per share, or 21%, to close at $37.24 per share, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of the common stock of NBTY during the Class Period (the aClassa). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.