The complaint charges NutriSystem and certain of its officers with violations of the Exchange Act while at the same time selling nearly $7 million in their personal holdings of NutriSystem stock. According to the complaint, during the Class Period, defendants issued materially false and misleading statements that misrepresented and/or failed to disclose: (a) that the Company had been signing up fewer new customers and was not performing according to internal expectations; (b) that the Company's costs of acquiring new customers were significantly increasing; and (c) that the Company's performance had been negatively impacted by competition from other weight loss products on the market. As a result, the defendants lacked a reasonable basis for their positive statements about the Company and its prospects, which artificially inflated NutriSystem stock to Class Period highs exceeding $70 per share while the defendants unloaded nearly $7 million in NutriSystem stock.

After the markets closed on October 3, 2007, the Company announced its preliminary third quarter 2007 results and revised earnings guidance for the full year of 2007. In response to this announcement, the price of NutriSystem common stock fell $15.98 per share, or approximately 34%, to close at $31.59 per share, on extremely heavy trading volume.

If you are a member of the class, you may move the Court, through counsel of your choice, no later than December 10, 2007 to serve as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of class members in directing the litigation. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as lead plaintiff. If you have sustained losses on your purchases of NutriSystem publicly traded securities during the Class Period, please contact Klafter & Olsen LLP at http://www.klafterolsen.com or call us at 202/261-3553 for a more thorough explanation of the lead plaintiff selection process and the claims that can be asserted against NutriSystem.

Klafter & Olsen LLP has extensive expertise in prosecuting investor class actions involving financial fraud and has offices in Washington D.C. and New York. Please visit our website for more information about the Firm.