Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against LifeVantage Corporation
Oklahoma City, OK (September 19, 2016) – On September 15, 2016, a securities class action lawsuit was filed in the United States District Court for the District of Utah against LifeVantage Corporation (NASDAQ: LFVN). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is November 4, 2015 through September, 13, 2016. More specifically, this litigation was filed because the Company announced, after the markets closed on September 13, 2016, that it will delay the release of its fourth quarter and fiscal year 2016 financial results. The Company is currently unable to estimate the impact of the review to net revenue, tax expense, net income or other aspects of its financial statements for the fiscal year ended June 30, 2016 or any potential prior periods. The Company’s Audit Committee is conducting an independent review of these matters and had retained independent counsel to assist in that review.
The review relates to sales of the Company’s products in certain international markets and the determination of revenue and the deductibility of commission and incentive expenses associated with such sales, as well as the policies and procedures related to sales in those specific markets. The Company will experience a delay in the timely filing of its Annual Report on Form 10-K for its fiscal year ended June 30, 2016 (the "Form 10-K") and expects to file a notification of late filing on Form 12b-25 with the Securities and Exchange Commission to obtain an automatic 15-day extension of the filing deadline for the Form 10-K. There can be no assurance that the Company will complete the preparation and filing of the Form 10-K within the extension period.
LifeVantage President and Chief Executive Officer Darren Jensen stated, “We regularly review our policies and procedures to ensure the utmost accuracy and transparency in our financial reporting. Our Board’s Audit Committee has engaged independent external resources to review our policies and procedures and support our team in finalizing our financial results for fiscal 2016.”
The Company will not be in a position to release financial results for the fiscal year ended June 30, 2016 until the independent review by the Audit Committee is completed. The Company is working diligently on this matter and will, as soon as practicable, make a further announcement regarding the updated timing of the release of financial results and a conference call on its financial results.
After the announcement, the Company’s share price dropped to a closing price of $9.08 on September 14, 2016.
Plaintiff seeks to recover damages on behalf of all LifeVantage Corporation shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, November 14, 2016 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to email@example.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Mon, September 19, 2016
by Robin Hester filed under