Nutrisystem 2008 Annual Report Download - page 24

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Minimum Wage Act, alleging that NutriSystem’s compensation plan also violated state law. On June 11, 2008,
NutriSystem answered the amended complaint and moved to dismiss the plaintiff’s state-law class claim. On
June 11, 2008, the plaintiff filed a motion to proceed as a collective action and send class members notice under
the Fair Labor Standards Act claim. On July 25, 2008, the Court granted NutriSystem’s motion to dismiss with
respect to the state law claim. On September 26, 2008, the Court granted Plaintiff’s Motion to Proceed as a
Collective Action and Facilitate Notice. On October 8, 2008, the Court entered a Stipulation and Order approving
proposed notice of collective action lawsuit. On October 14, 2008, Plaintiff’s counsel mailed notice to potential
class members. Including Plaintiff, fifty-four former sales representatives and fourteen current sales
representatives have opted-into this litigation. On December 10, 2008, Plaintiffs served document requests and
interrogatories upon NutriSystem to which the Company has responded. The Company believes the claims are
without merit and intends to defend the litigation vigorously.
The Company is also involved in other various claims and routine litigation matters. In the opinion of
management, after consultation with legal counsel, the outcome of such matters is not anticipated to have a
material adverse effect on the Company’s consolidated financial position, results of operations or cash flows in
future years.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None submitted.
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