Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Nu Skin Enterprises, Inc. After Citron
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the securities of Nu Skin Enterprises, Inc. ("Nu Skin" or the "Company") (NYSE: NUS), concerning potential violations of federal securities laws.
On August 7, 2012, shares of Nu Skin fell approximately 9% to close at $44.36 after short-seller Citron Research published a report alleging that the personal-care products maker is operating an illegal multi-level marketing scheme in China. Citron alleged that Nu Skin's direct-selling business in China was actually "pyramid-selling" and was illegal under Chinese law. "We believe they violate laws regulating direct selling, as well as the prohibition on pyramid sales, specifically by supporting the creation of a multi-level pyramid compensation scheme, as well as requiring purchases in order to participate in sales commissions or salary," Citron said.
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