Earnings Preview: Medifast (MED)

Later today after the market close, Medifast MED will announce results for the fourth quarter. Wall Street analysts predict that the company will report a gain of .32% as compared to last year's gain of .21%. Currently stocks are at $19.40 a share. On March 11, 2011, Medifast announced that it will postpone the release of its fourth-quarter and full-year results because it needs more time to "review the recognition of certain expenses in prior periods.” In reaction to the announcement, Medifast shares fell 24% to $16.63 per share. On March 30, it was announced that class action lawsuits were filed in the United States District Court for the District of Maryland on behalf of purchasers of Medifast, Inc. securities from March 4, 2010, through March 10, 2011, inclusive (the "Class Period"). The complaints allege that Medifast violated the Securities and Exchange Act of 1934 by making materially false and misleading statements, and by failing to disclose adverse facts about the Company's business.