Friday, January 22, 2016

Faruqi & Faruqi Investigation: GNC Holdings, Inc.

The investigation focuses on whether the Company’s Board of Directors and its officers committed mismanagement and breached their fiduciary duties.  On October 22, 2015, the Attorney General of Oregon (the “OAG”) filed a lawsuit against General Nutrition Corporation (“GNC”) alleging that GNC “repeatedly violated Oregon’s Unlawful Trade Practices Act (“UTPA”) by misrepresenting that various products that GNC sold in Oregon were lawful dietary supplements when in fact, the products were adulterated and unlawful because they contained either picamilon or BMPEA, two potentially dangerous ingredients that do not meet the legal definition of a dietary ingredient and may not be lawfully used in dietary supplements.”  
Moreover, the OAG complaint alleges that on June 16, 2015, the OAG issued an Investigative Demand to GNC Holdings (GNC’s parent company) which demanded production of documents and information relating to GNC’s sale of picamilon.  The Investigative Demand clearly discussed the likelihood that picamilon was not a lawful dietary ingredient.  GNC was aware that GNC Holdings received the demand, and GNC produced documents and information in response to the demand.  Despite the foregoing, GNC continued to sell products that contain picamilon and did not cease selling such products until after the OAG issued a Notice of Unlawful Trade Practices and Proposed Resolution on September 21, 2015.
Take Action
If you currently own GNC stock and would like to discuss your legal rights, please contact us by calling Stuart Guber toll free at (215) 277-5770 or by sending an e-mail to Faruqi & Faruqi, LLP also encourages anyone with information regarding GNC’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

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