SOURCE: Milberg LLP

March 30, 2011 16:31 ET

Milberg LLP Announces the Filing of Securities Fraud Class Action Lawsuits Against Medifast, Inc.

NEW YORK, NY--(Marketwire - March 30, 2011) - Class action lawsuits were filed in the United States District Court for the District of Maryland on behalf of purchasers of Medifast, Inc. ("Medifast") (NYSE: MED) securities from March 4, 2010, through March 10, 2011, inclusive (the "Class Period").

The complaints allege that Medifast violated the Securities and Exchange Act of 1934 by making materially false and misleading statements, and by failing to disclose adverse facts about the Company's business. Specifically, Defendants failed to disclose to shareholders that the Company was improperly recognizing certain expenses and that the Company lacked adequate internal and financial controls which caused an inflated stock price.

On March 11, 2011, Medifast announced that it will postpone the release of its fourth-quarter and full-year results because it needs more time to "review the recognition of certain expenses in prior periods." In reaction to the announcement, Medifast shares fell 24% to $16.63 per share.

If you purchased Medifast securities during the Class Period you may, no later than May 17, 2011, file a motion with the Court to appoint you lead plaintiff. A lead plaintiff is a representative party that directs the litigation, and will be the movant that the Court determines to have the largest financial interest in the litigation with claims typical of those of other class members and the ability to adequately represent the class. Your share in any recovery will not be enhanced by serving as a lead plaintiff. You do not need to be a lead plaintiff to recover in a class action; you can recover as an absent class member. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover as an absent class member. The complaint in this action was not filed by Milberg.

Founded in 1965, Milberg has offices in New York, Los Angeles, Tampa, and Detroit. The Firm has litigated landmark cases and recovered billions for shareholders and consumers. Our website (www.milberg.com) has additional information.

You can contact the following attorney for more information:

Contact Information

  • Andrei V. Rado, Esq.
    Milberg LLP
    One Pennsylvania Plaza, 49th Fl.
    New York, NY 10119-0165
    Phone number: (800) 320-5081
    Email: contactus@milberg.com

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