NBTY shareholder lawsuit
This article was originally published in The Tan Sheet
Executive Summary
Central Islip, N.Y. federal Judge Arthur Spatt dismisses consolidated shareholder class action against dietary supplement firm due to failure to adequately plead fraud. In Sept. 28 opinion, court says plaintiffs' allegations that NBTY failed to disclose several known adverse trends affecting company's financial health, including dramatic weakening in its retail sector, are "conclusory and insufficiently supported by the facts." Plaintiffs have 30 days to amend the complaint. Action was filed on behalf of purchasers of NBTY common stock between Jan. 27, 2000 and June 15, 2000, and alleged the company, certain officers and directors failed to disclose material facts that resulted in a drop in firm's stock price (1"The Tan Sheet" Aug. 14, 2000, p. 2)...