Company: Natural Health Trends Corp.
A shareholder class action lawsuit has been filed against Natural Health Trends Corp. (“Natural Health Trends” or the “Company”) (NASDAQ: NHTC) on behalf of purchasers of the Company’s common stock between April 27, 2016 and January 5, 2019, inclusive (the “Class Period”).
On January 7, 2019, GeoInvesting reported that China Central Television, a prominent state television broadcaster in China, aired an exposé asserting that Natural Health Trends was operating as a pyramid scheme in China, contrary to Chinese law. Following this news, shares of the Company’s stock fell $4.89 per share, or nearly 25% in value, to close on January 7, 2019 at $14.88 per share, on heavy trading volume.
The class action complaint alleges that defendants made materially false and misleading statements during the Class Period, and failed to disclose to investors that: (i) Natural Health Trends was operating as a pyramid scheme in China, which is contrary to Chinese law; (ii) consequently, Natural Health Trends was not in compliance with applicable Chinese law; and (iii) as a result, Defendants’ statements about Natural Health Trends’ business, operations, and prospects, were false and misleading and/or lacked a reasonable basis at all relevant times.
Natural Health Trends stockholders who purchased shares of the Company’s stock prior to January 5, 2019 are encouraged to contact the firm to discuss their legal rights and potential recovery options.