Disclosure NewswireTMiCrowdNewswire - Sep 19, 2016
SAN FRANCISCO, CA – Hagens Berman Sobol Shapiro LLP alerts investors in LifeVantage Corporation (NASDAQ: LFVN) that a securities fraud class action has been filed and the time to apply to be a lead plaintiff is November 14, 2016.
If you purchased or otherwise acquired securities of LFVN between November 4, 2015 and September 13, 2016 and suffered significant losses contact Hagens Berman Sobol Shapiro LLP. For more information visit: https://www.hbsslaw.com/cases/LFVNor contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing [email protected].
The suit results from LifeVantage’s September 13, 2016 announcement that it would not timely file its Annual Report on Form 10-K with the Securities and Exchange Commission.
The Company explained that “[f]ollowing an internal review by Company personnel of its policies and procedures, the Company is in the process of reviewing its sales into certain international markets and the revenue and income tax accruals associated with such sales.” In addition, “[t]he review relates to sales of the Company’s products in certain international markets and the determination of revenue and the deductibility of commission and incentive expenses associated with such sales[.]” The suit alleges that LifeVantage lacked effective internal controls and improperly recognized revenue and took improper tax accruals in international markets.
In response to this news, LifeVantage’s stock price dropped approximately 12.7% to close at $9.08 per share on September 14, 2016.
“The accounting rules mandate when to recognize revenues and record expenses,” said Hagens Berman partner Reed Kathrein. “Those are not judgment calls and LFVN investors are rightly concerned about the possible outcome of the internal review.” Hagens Berman is continuing its investigation.
Whistleblowers: Persons with non-public information regarding LifeVantage should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email. [email protected].
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. Read the Firm’s Securities Newsletter, and visit the blog. For the latest news visit ournewsroom or follow us on Twitter at @classactionlaw.