Medifast Hit With 2nd Securities Fraud Action

Law360, New York (March 25, 2011, 1:38 PM EDT) -- Medifast Inc. investors on Thursday filed a second securities fraud class action in Maryland, alleging the company lacked adequate financial controls and embellished reported sales of its weight-loss programs.

The complaint, lodged in the U.S. District Court for the District of Maryland, claims Medifast falsified statements about its business and operations and concealed from investors the fact that accounting errors corrupted its financials.

Medifast prompted at least two investor lawsuits after announcing March 11 that it would delay the release of its annual report, needing to...
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