Dietary supplement shares dive on DOJ action

Shares of nutritional supplement companies tumbled Tuesday after the US Justice Department said it would announce criminal actions over the unlawful sale of the dietary aids.

Near 1845 GMT, shares of GNC Holdings plunged 13.7 percent to $26.80, Vitamin Shoppe shed 6.4 percent to $27.75 and Herbalife lost 5.8 percent at $52.05.

The moves came after the department said it would hold a news conference at 2030 GMT to announce "criminal and civil actions" involving "the unlawful advertising and sale of dietary supplements."

The DOJ advisory did not name the target or targets of the crackdown.

GNC shares have been under pressure since Oregon Attorney General Ellen Rosenblum announced in October she was suing the company over its sale of dietary supplements that contained chemicals not approved for use in the US.

The Oregon suit alleged GNC sold products containing the synthetic chemicals picamilon and BMPEA. The latter is a powerful stimulant that is sometimes used for weight loss or as a doping drug by athletes.

GNC said in October that the Oregon suit was without merit and that it took action to stop selling products with the two ingredients as soon as it learned they were not considered legal by the US Food and Drug Administration.