SOURCE: Izard Nobel LLP

March 23, 2011 18:01 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Medifast, Inc.

WEST HARTFORD, CT--(Marketwire - March 23, 2011) -  The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Maryland on behalf of purchasers of the securities of Medifast, Inc. ("Medifast" or the "Company") (NYSE: MED) between March 4, 2010 and March 10, 2011, inclusive (the "Class Period"). 

The Complaint charges Medifast and certain of its officers and directors violated federal securities laws by making materially false statements regarding the Company's business and operations. Specifically, Defendants failed to disclose the following: (i) that the Company was improperly recognizing certain expenses; (ii) that Medifast lacked adequate internal and financial controls; and (iii) that, as a result of the foregoing, the Company's financial results were materially false and misleading at all relevant times.

On March 11, 2011, the Company disclosed that it would be forced to delay the filing of its fiscal 2010 financial results and its Annual Report. According to the limited information provided by the Company regarding the delay, Medifast requires additional time to complete its year-end financial statements due to the need to review the recognition of certain expenses in prior periods. On this news, Medifast shares fell $5.27 per share, or more than 24%, to close at $16.63 per share.

If you are a member of the class, you may, no later than May 17, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/medifast/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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