Herbalife receives securities class action lawsuit

A law firm recently announced it filed a securities class action lawsuit against a nutrition company due to potential federal securities law violations.

Law office Pomerantz, LLP, noted the litigation was filed in the U.S. District Court for the Central District of California against Herbalife, Ltd. The action includes all shareholders who acquired interests in the company during the class period between May 4, 2010, and April 11, 2014.

Shareholders brought forth allegations that the company's board of directors and other officers were in violation of the Securities Exchange Act of 1934, specifically Sections 10(b), 20(a) and Rule 10b-5. Specifically, multiple letters were sent out by Massachusetts Sen. Edward Markey to government regulators asking for an investigation, as there were accusations that the company was a pyramid scheme. The Federal Bureau of Investigation and the U.S. Department of Justice began looking into Herbalife on April 11, 2014, which continued to hurt the company's stock value.

It is possible for shareholders to become lead plaintiff in this case, but they will need to file all of the necessary paperwork with the court by June 13, 2014. The court will then decide if they fit the necessary requirements to adequately represent the class.

For any stockholders who have questions or concerns about their rights or the process as a whole, it is possible to speak with the law office to rectify these issues. The best person to contact about these questions is Robert Willoughby, and he can be reached by telephone or email. For those who send an email, it is important to list their mailing address, telephone number and the total shares acquired from Herbalife. Additionally, there is a copy of the complaint available on the law office's website.

Separate investigation underway
Another law firm noted it already started looking into the case, and there is also a possibility for there to be a class action claim down the road.

Bronstein, Gewirtz and Grossman, LLC, explained that it was investigating Herbalife for many of the same reasons.

It is also an option for stockholders to speak with this law office to learn more about the investigation and how any further action could affect them. Additionally, any individuals with information are encouraged to make contact as well. Both Peretz Bronstein and Eitan Kimelman are available to be reached by telephone or email.