WAYNE, Pa.--(BUSINESS WIRE)--Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/med) announces that a class action lawsuit has been filed in the United States District Court for the District of Maryland on behalf of purchasers of the common stock of Medifast, Inc. ("Medifast" or the "Company") (NYSE: MED) between March 4, 2010 and March 10, 2011, inclusive (the "Class Period").
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at rmaniskas@rmclasslaw.com or visit: www.rmclasslaw.com/cases/med.
The Complaint charges Medifast and certain of its officers and directors violated federal securities laws by making false and misleading statements regarding the Company's business and prospects. Specifically, defendants failed to disclose the following adverse facts: (1) that the Company had inadequate internal controls; (2) that the Company was improperly recognizing certain expenses; (3) that the Company’s financial statements were materially false and misleading; and (4) the Company’s financial result, during the Class Period, were not fairly presented in conformity with GAAP and were materially misleading.
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.
If you are a member of the class, you may, no later than May 17, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/med or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at rmaniskas@rmclasslaw.com. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.