SOURCE: Dyer & Berens LLP

Dyer & Berens LLP

May 18, 2010 11:52 ET

Dyer & Berens LLP Files Class Action Lawsuit on Behalf of Investors Who Purchased NBTY, Inc. Common Stock Between November 9, 2009 and April 26, 2010; Encourages Investors With Significant Losses to Consider Seeking a Lead Plaintiff Appointment -- NTY

DENVER, CO--(Marketwire - May 18, 2010) -  Dyer & Berens LLP (www.DyerBerens.com) today announced that it has filed a class action in the United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of NBTY, Inc. (NYSE: NTY) between November 9, 2009 and April 26, 2010 (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934.

If you wish to serve as a lead plaintiff, you must move the court no later than July 12, 2010. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jeffrey A. Berens, Esq., at (888) 300-3362, (303) 861-1764, or via email at jeff@dyerberens.com. Any member of the putative class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the company'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 company's advertising costs were escalating far in excess of the company'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 decline of 4%. Moreover, according to the press release, 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." In response, shares of the company's stock fell $9.66 per share, or 21%, to close at $37.24 per share.

Plaintiff seeks to recover damages on behalf of NBTY investors. The plaintiff is represented by Dyer & Berens LLP, which has significant expertise in prosecuting investor class actions. For more information about the firm, please go to www.DyerBerens.com.

Contact Information

  • Contact:

    Jeffrey A. Berens
    Dyer & Berens LLP
    303 East 17th Avenue, Suite 300
    Denver, CO 80203
    Tel: (888) 300-3362 or (303) 861-1764
    Email: Email Contact