Twinlab
This article was originally published in The Tan Sheet
Executive Summary
Securities class actions filed against supplement firm and its officers in Islip, N.Y. federal court on behalf of purchasers of Twinlab stock between April 27, 1999 and Nov. 15, 2000. The lawsuits generally allege defendants issued materially false and misleading financial statements and misrepresented sales growth potential, particularly for herbals. The complaints also assert the firm overstated its physical inventory, and that Twinlab stock was artificially inflated as a result of these disclosure violations. On Nov. 15, Twinlab announced product returns from "major customers" and "inventory reduction" in the herbals and sport nutritional markets forced it to lower FY 2000 projections. The company's 10-Q filing with SEC had been delayed due to inventory discrepancies (1"The Tan Sheet" Nov. 20, p. 5)