New York – March 4, 2016 – Wites & Kapetan, P.A. (www.wklawyers.com) has been investigating Herbalife Ltd. (“Herbalife” or the “Company”) (NYSE: HLF) for potential violations of the federal securities laws. Investors who purchased shares of Herbalife common stock between August 5, 2015 and March 2, 2016 may be affected.
On March 3, 2016 Herbalife disclosed in a filing with the Securities and Exchange Commission (“SEC”) that the Company had “identified errant information regarding the Company’s new ‘Active New Member’ metric that was provided on certain of the Company’s 2015 earnings calls.” The Company’s SEC filing further states that “[t]he Company began tracking this non-financial metric in 2015 in connection with certain marketing plan changes and discussed it for the first time on its second quarter 2015 earnings call.” However, according to a Wall Street Journal article published on March 3, Herbalife created the new metric – Active New Members – to defend itself against activist investor William Ackman’s accusations that Herbalife is a Ponzi scheme.
Herbalife blames “data scripting errors” for the erroneous information provided to investors at least 28 times since August 5, 2015, the date of its second quarter 2015 earnings call.
If you purchased shares of Herbalife common stock and would like to discuss our investigation, please contact us by e-mailing email@example.com or by calling 866-277-8631:
Wites & Kapetan, P.A.
4400 North Federal Highway
Lighthouse Point, FL 33433
E-mail address: firstname.lastname@example.org
What is a class action?
A class action is a lawsuit brought by one person that has a claim that is the same or similar to a larger group of people. The person bringing the lawsuit is commonly referred to as the "Class Representative” or the "Named Plaintiff". The larger group of people is called the "Class"
How many people are necessary to begin a class action?
Only one. A class action may be initiated by only one person, who serves as the Class Representative and files the class action lawsuit on behalf of the Class. The Class in some class actions may include tens of thousands, or even hundreds of thousands of persons. Class actions may also involve much smaller groups, where the Class has only a few hundred people, and even as few as 40 or so. In either event, only one person is required to come forward to begin the class action lawsuit by serving as the Class Representative and filing the class action complaint with their lawyer.
What types of cases may be class actions?
The law of class actions, and the rules of civil procedure that govern class actions, applies to virtually all cases, provided that such case satisfies the requirements to be a class action. For example, class actions may involve defective products; fraud in the sale of securities (i.e., stock); antitrust violations; overcharging for products and services such as insurance or fees in real estate transactions; charging a fee when no service is provided; unfair and deceptive trade practices; and pharmaceuticals.
Do I have to pay a lawyer to start a class action?
No. Class action lawyers work on a contingency fee basis, which means that you, as the Class Representative, are not obligated to pay your lawyer’s attorney’s fees or costs. If the case is successful, the lawyers will ask the Court to award them, from the recovery obtained for the Class, attorney’s fees and the reimbursement of their costs.
How long does a class action take?
Class action lawsuits are complex and difficult to litigate. While some class actions may be resolved in a year or two, it is not uncommon for class actions to remain in court for many years.
Does Wites & Kapetan only handle class actions?
Marc A. Wites has worked on class action litigation for the past 20 years, and has done so at Wites & Kapetan since 2001. Marc and the firm also represent individuals with significant injuries in cases other than class actions.