Robbins Umeda LLP Announces an Investigation of Blyth, Inc. on
behalf of Blyth Shareholders
SAN DIEGO, Calif. and
GREENWICH, Conn., Nov. 19, 2012 /PRNewswire/ -- Shareholder
rights firm Robbins Umeda LLP is investigating possible breaches of
fiduciary duty and other violations of the law by certain officers
and directors of Blyth, Inc. (NYSE: BTH) in relation to Blyth's
ownership of ViSalus, Inc.
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Robbins Umeda LLP is investigating whether officers and
directors of Blyth breached their fiduciary duties to shareholders
by permitting and failing to correct insufficient controls and
improper procedures that led to the disclosure of false and/or
misleading statements. In particular, the firm is investigating
whether sales at ViSalus, Inc., a multilevel weight management
nutritional products marketing company controlled by Blyth, were
being overstated in order to mask a significant decline in sales of
Blyth's other product lines. On September
21, 2012, Moody's Investment Services cut its outlook for
the company to "negative," leading the stock to drop $3.95 per share, or 10%. On September 26, 2012, the company cancelled its
plan to spinoff ViSalus by selling $175
million of its ViSalus stock in an initial public offering.
On this news, Blyth's share price dropped by $7 per share or over 21%, to close at
$25.68.
On November 2, 2012, after Blyth's
disclosure that third quarter 2012 ViSalus sales were significantly
lower than projected ($169 million)
Blyth stock fell an additional $3.33
per share, or 15%. Additionally, on November 6, 2012, the company issued an
after-hours press release reducing the company's fiscal year 2012
guidance by approximately $0.20 per
share, including $0.12 per share for
the costs attributable to the canceled ViSalus IPO. On this news
the company's stock price dropped an additional $1.48 per share, or 7.7%.
Robbins Umeda LLP highlights that Blyth shareholders have the
option to pursue a shareholder derivative action, through which
shareholders aim to hold insider wrongdoers accountable for their
actions, prevent future misconduct, and bring long-term value back
to the company. Concerned shareholders who would like more
information about their rights and potential remedies can contact
attorney Darnell R. Donahue at (800)
350-6003, info@robbinsumeda.com, or via the shareholder information
form on the firm's website.
Robbins Umeda LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. For more information, please go to
http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/blyth/
Attorney Advertising.Past results do not guarantee a similar
outcome.
Contact:
Robbins Umeda LLP
Darnell R. Donahue
Info@robbinsumeda.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsumeda.com
SOURCE Robbins Umeda LLP