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

Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.