Robbins Arroyo LLP: LifeVantage Corporation (LFVN) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against LifeVantage Corporation (NASDAQCM: LFVN) in the U.S. District Court for the District of Utah. The complaint is brought on behalf of all purchasers of LifeVantage securities between November 4, 2015 and September 13, 2016, for alleged violations of the Securities Exchange Act of 1934 by LifeVantage’s officers and directors. LifeVantage identifies, researches, develops, and distributes nutraceutical dietary supplements and skin care products.
LifeVantage Accused of Misleading Investors About Its Financial Condition
According to the complaint, throughout the class period, LifeVantage touted the company’s positive financial condition in press releases and filings with the U.S. Securities and Exchange Commission (“SEC”). The company stated, “we made progress on our growth plan that focuses on critical aspects of our business, including the launch of new technologies, brand differentiation, the introduction of new products, and international growth.” LifeVantage reiterated its annual guidance and predicted promising revenue, operating margin, and net income results in fiscal 2016. The company also highlighted its record revenue performance thus far, emphasizing positive trends in its existing business along with accelerated sales growth. Notably, LifeVantage’s SEC filings certified that the financial information was accurate and disclosed any material changes to the company’s internal control over financial reporting.
However, the complaint alleges that LifeVantage officials failed to disclose that the company lacked effective internal financial controls, and as a result, the company had improperly accounted for sales in certain international markets, along with associated revenue and income tax accruals. On September 13, 2016, LifeVantage issued a press release and Form 8-K with the SEC, announcing a delay in the release of the company’s fourth quarter and fiscal year 2016 financial results. LifeVantage stated that the audit committee of the company’s board of directors was conducting an independent review and had retained independent counsel to assist in that review. On this news, LifeVantage stock fell $1.32 per share, or 12.7%, to close at $9.08 per share on September 14, 2016.
LifeVantage Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.