ENGLEWOOD CLIFFS, N.J., March 24, 2011 (GLOBE NEWSWIRE) -- Gardy & Notis, LLP has filed a class action lawsuit in the United States District Court for the District of Maryland on behalf of all purchasers of shares of common stock of Medifast, Inc. ("Medifast") during a class period of March 4, 2010 through March 10, 2011.
The class action seeks to recover damages on behalf of plaintiff and a class of all other individual and institutional investors who purchased or otherwise acquired shares of Medifast common stock during the class period. The defendants in the case are Medifast, Inc., Michael S. Mcdevitt, Brendan N. Connors, Bradley T. Macdonald and Margaret E. Macdonald-Sheetz.
Plaintiff alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing a series of materially false and misleading statements and/or failed to disclose that Medifast's financial results were materially false and misleading at all relevant times. On March 11, 2011, the Company announced that it would delay the release of its Annual Report and requires additional time to complete its year-end financial statements due to the need to review past expenses in prior periods. The Company's announcement came at the heels of recent disclosures that the Company had dismissed its long-time auditor after a finding of errors in its 2006, 2007 and 2008 financial statements and restating its 2009 Annual Report. On this news, Medifast shares declined $5.27 per share, or more than 24%, to close at $16.63 per share.
If you purchased shares of Medifast common stock between March 4, 2010 through March 10, 2011, you may, no later May 17, 2011, request that the Court appoint you as lead plaintiff for the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. You must meet certain legal requirements to serve as a lead plaintiff.
For more information regarding the lawsuit, or to obtain a copy of the complaint filed in the lawsuit, please contact plaintiff's counsel, James S. Notis or Kira German at Gardy & Notis, LLP, 560 Sylvan Avenue, Englewood Cliffs, New Jersey 07632, Tel: 201-567-7377, Fax: 201-567-7337; jnotis@gardylaw.com or kgerman@gardylaw.com.
CONTACT: Gardy & Notis, LLP James S. Notis jnotis@gardylaw.com Kira German kgerman@gardylaw.com Tel: 201-567-7377 Fax: 201-567-7337 www.gardylaw.com