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news.Lawsuit alleged that NutriSystem was aware that its sales were threatened by GSK's OTC drug, Alli, but continued to boast its future earnings prospects
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The US District Court, in In re NutriSystem securities litigation, has rejected allegations that top executives of the company had made false and misleading statements about the company’s financial health, reported Law.com.
The US District Judge, Mary McLaughlin’s 56-page opinion in the litigation comes less than two months after the same judge tossed out a class action shareholders suit against the company.
The lawsuit alleged that NutriSystem was aware that its sales were threatened by GlaxoSmithKline’s over-the-counter anti-obesity drug, Alli, but the company continued to boast its future earnings prospects.
Hoeevr, Nutrisystem’s lawyers argued that the case should be dismissed because the plaintiffs had failed to establish ‘scienter’ meaning there was insufficient evidence that any public statements were knowingly false, quoted law.com.