Medifast Freed From Investors' Securities Fraud Suit

Law360, New York (March 28, 2013, 5:31 PM EDT) -- A Maryland federal judge on Thursday put an end to a securities class action over dietary supplement maker Medifast Inc.'s accounting practices and misstated earnings, finding that the company was guilty only of growing too fast and didn't intend to mislead investors.

Despite the plaintiffs' "decathlon of allegations" alleging Medifast lacked adequate financial controls and its executives embellished reported sales of its weight-loss programs that allegedly created an inference of scienter, U.S. District Judge George L. Russell III said the narrative the allegations paint isn't the...
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