GNC is a specialty retailer of health, wellness and performance products, including vitamins, minerals and herbal supplement products, sports nutrition and diet products. It has a worldwide network of more than 8,900 locations and online channels. Third-party manufacturers produce many of the products GNC sells. GNC requires its vendors to be honest, ethical, reliable and capable of providing products that meet its high standards of quality.
Who Is Affected?
This federal securities class action is brought on behalf of a class consisting of all persons and entities who purchased publicly traded GNC common stock between May 2, 2013 and October 22, 2015, both dates inclusive, seeking to pursue remedies under the Securities Exchange Act of 1934. GNC was incorporated in Delaware and is headquartered in Pittsburgh, Pennsylvania. Its common stock trades on NYSE under the ticker symbol “GNC.”
The complaint was filed on October 29, 2015 and is captioned Jonathan Gorrie, et al. v. General Nutrition Corporation, et al. It was filed in the Oregon District Court and its civil docket number is 3:15-cv-02037-PK. The class period runs from May 2, 2013 through October 22, 2015, both dates inclusive.
This class action complaint stems out of the October 22, 2015 press release by the Oregon Attorney General announcing a lawsuit against GNC for selling nutritional and dietary supplements containing illegal ingredients like picamilon and BMPEA. These illegal ingredients are not dietary ingredients as defined under Section 201(ff)(1) of the Federal Food, Drug, and Cosmetic Act. Therefore, products that contain either picamilon or BMPEA or both, may not be lawfully sold in the United States for they are not lawful dietary supplements. The class period started on May 2, 2013, when GNC filed its financial results report for the first quarter of 2013. The report attested that GNC’s disclosure controls and procedures were effective at a reasonable assurance level. GNC re-confirmed its evaluation of the company’s disclosure controls and procedures in every quarterly report thereafter through June 2015.
Following Oregon Attorney General’s announcement, GNC’s shares fell over 14%, causing the Plaintiff monetary loss.
This case is in the notice period. When a shareholder brings suit under certain federal securities laws, generally that shareholder must give notice via a press release. This notice starts a sixty-day period of time when any shareholder can investigate the underlying claims of the lawsuit and then elect to bring suit as well. At the end of this sixty-day period, the court appoints one shareholder (or a group of shareholders) to prosecute the securities litigation. We will review the docket again in December and update this page as warranted.