***IMPORTANT CASE UPDATE***

On December 21, 2022, residual distribution checks were mailed to Authorized Claimants who cashed their initial payment and were eligible to receive an additional payment under the Plan of Allocation. Please address any questions regarding your payment to the Claims Administrator.

The information contained on this web page is only a summary of information presented in more detail in the Notice of Pendency of Class Action, Proposed Settlement, and Motion for Attorneys’ Fees and Expenses (the “Notice”), which you can access by clicking here.  Since this website is just a summary, you should review the Notice for additional information. 

If you are a Settlement Class Member, your legal rights will be affected by this Settlement whether you act or do not act. Please read the Notice carefully

If you purchased or otherwise acquired the publicly traded common stock (“Common Stock”) of Nu Skin Enterprises, Inc. (“Nu Skin” or the “Company”), including call and put options (“Options”) on such publicly traded Common Stock, during the period between May 4, 2011 and January 17, 2014, inclusive (the “Class Period”) and were damaged thereby, you may be entitled to a payment from a class action settlement.

The Court’s Settlement Hearing

"The Court held a Settlement Hearing at 2:00 pm on October 5, 2016 in Courtroom 8.200 of the United States District Court for the District of Utah, Central Division, 351 South West Temple, Salt Lake City, UT 84101.

At the hearing, the Hon. Jill Parish approved the Settlement as fair, reasonable and adequate. The Court also approved the motions for attorneys' fees, litigation expenses, and the proposed Plan of Allocation.

What is this case about?

Nu Skin is a global multi-level marketing (“MLM”) company that distributes personal skin care products and nutritional supplements directly to consumers in the Americas, Europe, and the Asia Pacific region. MLM is a marketing strategy often used by companies making sales directly to consumers where the salespersons are compensated not only for products they sell but also for the sales of products to and by salespersons who they recruit. Prior to the start of the Class Period, growth in Nu Skin’s business in some of its larger, more developed markets including Japan and the United States was allegedly on the decline. Lead Plaintiff contends that to offset this alleged slowdown in growth, Defendants planned to substantially expand Nu Skin’s presence in the People’s Republic of China (“Mainland China”). The decision to focus the Company’s resources on growing business in Mainland China allegedly was made despite stringent regulations in Mainland China restricting multi-level compensation and direct selling practices that Nu Skin employs in its other markets.

On June 30, 2014, Lead Plaintiff filed a Consolidated Class Action Complaint (the “Complaint”), asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder. The Complaint alleges that Defendants violated the federal securities laws by making materially false or misleading statements concerning how Nu Skin was operating its business in Mainland China in order to create the appearance that the Company’s growth in Mainland China was achieved in compliance with Mainland China’s laws and regulations when Defendants knew that Nu Skin was not in compliance. The Complaint also alleges that Defendants failed to disclose that Nu Skin’s internal controls were intentionally (or at least recklessly) inadequate to supervise the training of new sales representatives to comply with Mainland China’s direct selling regulations. The Complaint alleges that Nu Skin was operating the very same MLM system in Mainland China that it was operating around the world – a system specifically prohibited in Mainland China. Defendants’ false or misleading statements and omissions allegedly caused the prices of Nu Skin Common Stock and Options to be artificially inflated during the Class Period and the prices of Nu Skin Common Stock and Options declined when the truth was allegedly disclosed.

Defendants have denied and continue to deny any wrongdoing and deny that they have committed any act or omission giving rise to any liability or violation of law. Defendants deny the allegations that they knowingly, or otherwise, made any material misstatements or omissions; that any member of the Settlement Class has suffered damages; that the prices of Nu Skin Common Stock and/or Options were artificially inflated by reason of the alleged misrepresentations, omissions or otherwise; or that members of the Settlement Class were harmed by the conduct alleged in the Complaint. Defendants have denied and continue to deny each and every one of the claims alleged on behalf of the Settlement Class and maintain that they have meritorious defenses to all claims alleged in the Complaint. Nonetheless, Defendants have concluded that continuation of the Action would be protracted and expensive, and have taken into account the uncertainty and risks inherent in any litigation, especially a complex case like this Action.

The Settlement Benefits

In exchange for the Settlement and the release of the Released Claims against the Released Defendant Parties, Defendants have agreed to fund a $47 million cash fund that, along with any interest earned on this amount, will be distributed after deduction of Court-awarded attorneys’ fees and expenses, Notice and Administration Expenses, Taxes, and any other fees or expenses approved by the Court, among all Class Members who submit valid Claim Forms and are found by the Court to be eligible to receive a distribution from the Net Settlement Fund.

If you are entitled to receive a distribution from the Net Settlement Fund, your share of the Net Settlement Fund will depend on several things, including, among other things, how many Class Members timely send in valid Claim Forms; the amount in the Net Settlement Fund; when Settlement Class Members purchased, acquired, or held Nu Skin Common Stock or Options during the Class Period; and whether and when Settlement Class Members sold their shares of Nu Skin Common Stock or Options.

Further Information:

This website and the Notice summarize the proposed Settlement.  For more details regarding this Settlement please reference the Stipulation and Agreement of Settlement, dated May 2, 2016, or other documents filed in the case under the “Court Documents” link on the left.  You may also contact the Claims Administrator or Lead Counsel for further information regarding this Settlement:

Claims Administrator:

In re Nu Skin Enterprises, Inc., Securities Litigation
c/o A.B. Data, Ltd.
PO Box 173022
Milwaukee, WI 53217
866-963-9975
info@NuSkinSecuritiesSettlement.com
www.NuSkinSecuritiesSettlement.com

Lead Counsel:

If you have questions, you may call the In re Nu Skin Enterprises, Inc., Securities Litigation Help Line at 866-963-9975 or email info@NuSkinSecuritiesSettlement.com.