Investigation begins for Nu Skin Enterprises

The possibility of a securities class action lawsuit looms for an anti-aging company, after its shareholders prompted a law office to begin an investigation related to potential law violations.

Law office Johnson and Weaver, LLP, noted it is looking into shareholder claims against Nu Skin Enterprises, Inc. The company recently was the center of a report in Chinese news publication the People's Daily, which pointed out potential issues with its business practice. This issue was that Nu Skin Enterprise's China operation was accused of acting like a pyramid scheme. The allegations resulted in the company's stock falling approximately 18 percent during intra-day trading.

This was the second of two reports in recent months that criticized Nu Skin Enterprises. The first occurred in October, when separate publication China's Beijing Youth Daily noted that the company was taking part in illegal business practices.

"Chinese newspapers have made numerous statements regarding Nu Skin operating illegally in their country and it appears shareholders have been kept in the dark until recently," said Jim Baker, lead analyst for Johnson and Weaver. "This conduct could have a significant impact Nu Skin's bottom line as the Company generates a significant portion of its revenue and operating profits from China."

Shareholders who have information on this situation may be helpful to the law firm. This group, as well as any stockholders who are curious to learn more about this action, should contact the office for more information. The best person to reach is Jim Baker, and he can be contacted by phone or email.

Additional investigation commences
Another law office is looking into claims against Nu Skin Enterprises on behalf of shareholders in the company.

Pomerantz, LLP, noted that it will investigate many of the aforementioned claims, as the company may have violated both Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

The most recent issues related to the company made the stock decline $25.84 per share on Jan. 15. This brought the company's stock to approximately $110.63 per share at the end of that day.

It is also possible to speak with this law firm about the investigation, which has the potential to become a class action claim at a later date. Robert Willoughby is available to field questions, and investors can reach him by email or telephone.