Blyth Inc. Securities Fraud Class Action Lawsuit

By Sarah Mirando | December 20, 2012

Category: Stocks & Securities Class Action Lawsuits

By Andrea Gressman

A securities class action lawsuit has been filed through the United States District Court of Connecticut against Blyth Inc. (NYSE:BTH). The securities fraud lawsuit was filed on behalf of investors that purchased Blyth common stock between March 14, 2012 and November 6, 2012 for alleged violations of the Securities Exchange Act of 1934.

Blyth Inc. is a well-known company that specializes in manufacturing and marketing. They specifically sell decorative products in North America. The Blyth securities class action lawsuit claims that throughout the Class Period, the company issued false and misleading statements pertaining to the company’s financial performance, which made it hard to accurately assess the company’s future prospects.

At issue in the securities fraud lawsuit is ViSalus, Inc., a weight-loss company that Blyth maintains a controlling interest over. It is alleged that Blyth over-exaggerated the nature and continued viability of the company, which served to hide the failing performance Blyth was experiencing in this particular unit as well as other units and product lines.

In addition to the securities lawsuit filed, there were further allegations made, beginning with a cut in the outlook for Moody’s Investors Services on September 21, 2012. It was eventually learned that the company liked financial stability and business metrics that they had falsely represented during the Class Period. These falsehoods were not discovered until Blyth stock prices fell. During that time, it was discovered that over $462 million market capitalization had disappeared.

The Blyth class action securities lawsuit has been filed on behalf of a number of angered individuals that bought into Blyth stocks under what they believe to be false representation. As a result, they may be entitled to compensation for financial loss and damages should the courts decide that Blyth did, in fact, falsely represent their financial success and future prospects.

If you are among individuals that acquired securities from Blyth during the Class Period, you may also qualify for certain compensations from financial loss and damages. Make sure you request that the Court add you as a lead plaintiff for the current ongoing case by no later than the Lead Plaintiff Deadline of January 12, 2013. You may specify the counsel of your choice. You are also able to choose whether you want to remain an absent class member. In order to be considered a lead plaintiff, you may be required to meet certain requirements.

If you have been the victim of stock fraud or securities fraud, please visit the Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation to learn more about your legal options from a securities lawsuit attorney. Provide your information and receive a free consultation.