A DOJ press conference is scheduled for 3:30 p.m. ET, and the agency is expected to announce criminal and civil action against the advertising and sale of supplements.
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The Justice Department 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.
Wall Street immediately assumed the charges would be lobbed at GNC, which has been caught up in legal troubles lately.
Vitamin Shoppe, VSI, -8.5%.
Last month, Oregon Attorney General filed lawsuit against GNC for selling nutritional and dietary supplements containing the illegal ingredients picamilon and BMPEA, not approved in U.S.
GNC’s shares fell so fast in value that trading was briefly halted. The stock has since rebounded from the lows, but is still off 12% in mid-afternoon trading.
Based in Secaucus, NJ, Vitamin Shoppe is a multi-channel specialty retailer and contract manufacturer of vitamins, minerals, herbs, specialty supplements, sports nutrition and other health and wellness products.
Shares of GNC Holdings (GNC), Vitamin Shoppe (VSI) and Nu Skin Enterprises (NUS) are down 17%, 8.5% and 5.5% respectively.
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Following the news, shares of GNC Holdings Inc.
