NEW YORK, April 1, 2011 (GLOBE NEWSWIRE) -- Shareholders of Medifast, Inc. ("Medifast" or the "Company") (NYSE:MED) are reminded of the securities class action lawsuit against Medifast and certain of its officers. The class action (Civil Action No.: 11-cv-0720) pending in the District of Maryland is on behalf of a class of all persons or entities who purchased or otherwise acquired Medifast securities during the period from March 4, 2010 through and including March 10, 2011 (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Medifast securities during the Class Period and would like to serve as Lead Plaintiff for the class, you have until May 17, 2011 to ask the Court to appoint you. A copy of the complaint can be obtained at . To discuss this action, contact Rachelle R. Boyle at firstname.lastname@example.org or 888.476.6529, toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Medifast is a Maryland corporation that combines physician-supervised weight loss programs with nutritional supplements and multidisciplinary patient education programs. The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was improperly recognizing certain expenses; (2) that the Company lacked adequate internal and financial controls; and (3) that, as a result of the foregoing, the Company's financial results were materially false and misleading at all relevant times.
On March 11, 2011, the Company disclosed that it would be forced to delay the filing of its fiscal 2010 financial results and its Annual Report. According to the limited information provided by the Company regarding the delay, Medifast requires additional time to complete its year-end financial statements due to the need to review the recognition of certain expenses in prior periods. On this news, Medifast shares declined $5.27 per share, or more than 24%, to close at $16.63 per share.
The Pomerantz Firm, with offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
CONTACT: Rachelle R. Boyle Pomerantz Haudek Grossman & Gross LLP 888-476-6529 (ext. 237) email@example.com