NutriSystem Faces Shareholder Class Action

Law360 (October 16, 2007, 12:00 AM EDT) -- Shareholders of weight-loss company NutriSystem Inc. have filed a putative class action alleging the company fooled investors with falsely promising financial forecasts while its executives pulled their own stock out.

Plaintiff Jeanne Fong alleges on behalf of the potential class – purchasers of NutriSystem stock between Feb. 14 and Oct. 3 this year – that investors bought overvalued shares as a result of misleading revenue reports that failed to mention the company's mounting woes in the face of competition by GlaxoSmithKline's FDA-approved diet pill.

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