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...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

Proter v. Medifast, Inc. et al


Case Number

1:11-cv-00720

Court

Maryland

Nature of Suit

Securities/Commodities

Judge

George Levi Russell, III

Date Filed

March 17, 2011

Law Firms

Companies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.