seekingalpha.com/news/2935666-feds-to-announce-criminal-and-civil-actions-related-to-dietary-supplements-this-afternoon-major-players-slump
www.reuters.com/article/2015/11/17/us-doj-investigation-dietarysupplements-idUSKCN0T628320151117
Nov 17 (Reuters) - Federal agencies including the Department of Justice will announce on Tuesday criminal and civil actions related to unlawful advertising and sale of dietary supplements.
Shares of dietary supplement makers GNC Holdings Inc were down 24 percent in afternoon trading, while those of Vitamin Shoppe fell nearly 8 percent and Herbalife Ltd 2.5 percent.
Herbalife spokesman Alan Hoffman said in an email the investigation had nothing to do with the company.
Representatives of GNC and Vitamin Shoppe were not immediately available for comment.
The DoJ said it would hold a news conference at 3:30 p.m. ET (2030 GMT) to announce the results of its investigation.
The DoJ said the news conference would be attended by representatives of the U.S. Food and Drug Administration, the U.S. Postal Inspection Service, the Federal Trade Commission, the Department of Defense and the U.S. Anti-Doping Agency.
GNC Holdings came under scrutiny from the office of New York Attorney General Eric Schneiderman earlier this year related to certain ingredients used in its herbal supplements.
GNC said in March it had restored certain herbal supplements to its stores in New York after reaching an agreement with Schneiderman's office.
Read more: http://www.dailymail.co.uk/wires/reuters/article-3322542/U-S-DoJ-announce-actions-against-dietary-supplement-makers.html#ixzz3rmGIrFAY
http://www.reuters.com/article/2015/11/17/usa-supplements-idUSL1N13C1NJ20151117
Nov 17 USPlabs, which made the workout supplement Jack3d, and six of its executives face criminal charges for the unlawful sale of the nutritional supplement, the U.S. Justice Department said on Tuesday in announcing a larger probe by multiple federal agencies aimed at stemming the sale of unproven nutritional supplements.
Six executives with USPlabs LLC and a related company, S.K. Laboratories, face criminal charges related to the sale of unlawful dietary supplements. Four were arrested on Tuesday and two are expected to surrender, the Justice department said.
The indictment says that USPlabs used a synthetic stimulant manufactured in China to make Jack3d and OxyElite Pro but told retailers that the supplements were made from plant extracts.
"The defendants knew of studies that linked the products to liver toxicity," the department said in a press statement.
News of the impending press conference earlier sent share prices of GNC Holdings Inc, Vitamin Shoppe and Herbalife Ltd lower. But those companies were not named in the subsequent announcement and all recovered to close down slightly.
GNC Holdings closed down 6.4 percent, Vitamin Shoppe ended down 5 percent and Herbalife slipped 1.5 percent.
Along with the Justice Department, the news conference was attended by representatives of the U.S. Food and Drug Administration, the U.S. Postal Inspection Service, the Federal Trade Commission, the Department of Defense and the U.S. Anti-Doping Agency.
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