Girard Gibbs is investigating Blyth, Inc. (NYSE: BTH) and its officers and directors for possible violations of federal securities laws. Blyth investors who wish to learn more about the investigation, and persons with information relating to the investigation, should contact securities fraud lawyer Jonathan K. Levine of Girard Gibbs toll free at (866) 981-4800.
Blyth is a marketing and manufacturing company that sells candles and other products through websites, catalogs and direct marketing operations. In October 2008, Blyth announced its acquisition of ViSalus, Inc., a multilevel marketing firm specializing in weight-management products. Throughout 2012, Blyth’s stock price rose as the company reported increased revenue due in part to “growth at ViSalus.” In August, Blyth announced that it would spin off ViSalus through an initial public offering in which Blyth and certain of its officers and directors would sell their ViSalus shares to the public. ViSalus’s registration statement contained information about its business, including the number of unique customers, promoters, and the structured of its marketing plan.
But beginning on September 21, 2012, the market learned new information about Blyth and ViSalus that led to large Blyth stock losses for investors. First, a Moody’s analyst cut Blyth’s credit outlook to “negative” in part because of costs associated with the ViSalus acquisition. Then, on September 26, the ViSalus IPO was cancelled, which was followed by revelations in early November that ViSalus’s revenue and Blyth’s earnings per share would be less than expected. All told, the new information caused more than $460 million in Blyth stock losses from the stock’s high in August.