Vitamin Shoppe Shareholders Sue After $30M Insider Cashout

Law360, New York (May 9, 2013, 6:00 PM EDT) -- Vitamin Shoppe Inc. was hit Tuesday with a proposed shareholder class action accusing the New Jersey-based company of beefing up its financial reports while hiding known threats to revenue, allowing company insiders to cash in more than $30 million in shares before stock prices plummeted.

The nutritional retailer and its top executives touted the financial state of the company throughout 2012, causing stock prices to rise, according to the complaint filed in New Jersey federal court. But this sunny outlook was short-lived, and unraveled at the...
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