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.
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, firstname.lastname@example.org, 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/
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SOURCE Robbins Umeda LLP