A federal judge has found that investors’ claims of securities fraud, cover-up and insider trading involving Nature’s Sunshine Products are legally sufficient, denying the company’s motion to dismiss the April 2006 class-action lawsuit.
U.S. District Judge Ted Stewart’s decision, issued Monday, means the case can proceed to the discovery phase, allowing attorneys for the plaintiffs to seek documents and conduct interviews to build their case. Stewart ruled against the Provo-based supplement maker on all but one matter, limiting the scope of claims to acts that occurred on or after March 15, 2005. Investors insisted the so-called scheme to deceive independent auditors about company financials dated back to April 23, 2002.
Salt Lake Tribune – Securities fraud class-action suit meets legal test
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