SOURCE: Brower Piven, A Professional Corporation

May 16, 2010 12:58 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $500,000 From Investment in NBTY, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the July 12, 2010 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - May 16, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit 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. ("NBTY" or the "Company") (NYSE: NTY) during the period between November 9, 2009 and April 26, 2010, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than July 12, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/415-6616) to answer any questions you may have in that regard. 

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that the Company was experiencing a significant disruption in its private label business and a related decrease in demand for its private label products, that the Company's advertising costs were escalating far in excess of the Company's internal forecasts and, that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects. According to the complaint, after, 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, announcing 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 decline of 4%, and, additionally, announcing that net income was "adversely affected by the Company's increased television advertising to support its Nature's Bounty, Osteo Bi Flex, Ester C and Pure Protein brands, the value of NBTY's stock declined significantly.

If you have suffered a net loss for all transactions in NBTY, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact