The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of Weight Watchers International, Inc. (NYSE:WTW) is ongoing concerning potential breaches of fiduciary duties by certain officers and directors of Weight Watchers.
Investors who are current long term investors in Weight Watchers International, Inc. (NYSE:WTW) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in NYSE:WTW stocks follows a lawsuit filed recently against Weight Watchers International, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:WTW stocks concerns whether certain Weight Watchers officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. Southern District of New York the plaintiff alleges that Weight Watchers International, Inc. violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the plaintiff claims that between February 14, 2012 and October 30, 2 defendants issued allegedly materially false and misleading statements regarding Weight Watchers International Inc’ financial performance and future prospects and failed to disclose adverse facts, including that Weight Watchers International, Inc. was experiencing execution issues which were causing it to miss its internally forecasted financial plan;, that Weight Watchers International, Inc. was experiencing a significant drop in its North America and United Kingdom meeting attendance figures, and that Weight Watchers International, Inc. was facing increased competition from free weight-loss apps and its enrollment was being negatively impacted.
On February 14, 2012, Weight Watchers International, Inc. announced results for its fourth quarter and full-year 2011, and provided full-year 2012 earnings guidance. In addition, Weight Watchers International, Inc. announced that it planned to launch a “modified Dutch auction” tender offer the following week for up to $720 million of its common stock with a price range between $72 and $83 per share, and that it separately had agreed to purchase shares held by its controlling shareholder, Artal Group, S.A., at the same price paid in the tender offer. The tender offer closed on March 22, 2012.
Earlier that month, the plaintiff alleges that certain defendants exercised large quantities of options in the $42-$53 per share range, and sold large quantities of Weight Watchers International, Inc. shares on the open market for $80-$82 per share. The plaintiff says that on March 22, 2012, those defendants also tendered shares to the Company for $82 per share and received combined gross proceeds on shares sold of approximately $11 million.
On April 9, 2012, per the terms of the tender offer, Artal Group, S.A., sold 9.5 million shares at $82 per share, for total proceeds of $779 million.
On May 2, 2012, Weight Watchers International, Inc. announced its results for its 2012 first quarter and revised downward its full-year 2012 earnings guidance that it had previously provided on February 14, 2012
On February 13, 2013, Weight Watchers International, Inc announced its fourth quarter 2012 financial results and providing full-year fiscal 2013 earnings guidance.
On August 1, 2013, Weight Watchers International, Inc announced its second quarter 2013 financial results and revived its fiscal 2013 guidance. In a separate filing with the SEC Weight Watchers International, Inc announced that David Kirchhoff notified the board of directors of Weight Watchers International, Inc of his resignation as Chief Executive Officer and as a director of the Company, effective July 30, 2013, in order to pursue other opportunities.
Then on October 30, 2013, Weight Watchers International, Inc announced its results for the third quarter of fiscal 2013, disclosing that year-over-year quarterly revenues had declined 8.5% and that quarterly net income had decreased by 10.5% and fully-diluted quarterly earnings per share had declined 11.2% from the same period the prior year. In addition, Weight Watchers International, Inc announced that it had indefinitely suspended its dividend. Shares of Weight Watchers International, Inc. declined from $$80.73 per share to $32.11 per share on October 31, 2013 and continued to decline to as low as $19.63 per share on March 25, 2014.
On May 30, 2014, NYSE:WTW shares closed at $20.83 per share.
Those who purchased shares of Weight Watchers International, Inc. (NYSE:WTW) have certain options and should contact the Shareholders Foundation.
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