Vitacost Beats Suit Over Pre-IPO Disclosures In 11th Circ.
By Stewart Bishop
Law360, New York (May 6, 2013, 4:06 PM EDT) -- The Eleventh Circuit on Monday upheld the dismissal of a securities class action alleging vitamin retailer Vitacost.com Inc. failed to disclose plans to shake up its profitable manufacturing division before a disastrous $132 million initial public offering, finding the investors couldn’t make their case that Vitacost withheld material information.
A three-judge appeals panel ruled that because the investors failed to plausibly allege a material misstatement or omission in the company’s pre-IPO prospectus, each one of their claims fails.
The shareholders had argued that a reasonable person...