The firm that killed Gowex, Gotham City Research, returns 12 months later to the present day with coverage of Medifast, the leading Nasdaq-listed Baltimore-based nutrition and weight-loss company. This is the first analysis of the company since the one it carried out on Criteo in September last year, when it accused the French technology of defrauding its clients.
Gotham analysts were responsible for uncovering the Gowex case, the Spanish company that offered Wi-Fi services, and which turned out to be a scam against investors for having its share price inflated due to false information from its founder, Jenaro García , issued a very critical report on Medifast last Thursday. Since the titles of the firm were published, 15% are left on the parquet.
The report is headlined: “Like Lumber Liquidatos, But With Undisclosed Toxic Metals.” And in the opinion of Gotham analysts, from 21 to 74% of Optavia’s (its lifestyle brand) products contain contaminants, so its shares will decline between 62 and 86% from current prices.
As the nutrition company explains on its website, the company’s weight-loss plan works because “developed by doctors, clinically proven, Medifast works with your body to burn fat while maintaining muscle mass.”
From Gotham City they point out that although Medifast claims that all its products are manufactured by the company, Optavia labels say “manufactured for Optavia”, adding that although Optavia products claim Made in the USA, they claim to have proof that the claim is not rated is false. “Medifast will have to add warning labels to their products,” add their experts.
According to their analysis, 85% of Optavia samples tested by a leading laboratory exceeded the maximum allowable dose level for lead under Proposition 65 and 23% of Optavia samples tested exceeded the maximum daily intake levels for lead. FDA lead. Finally, “a 2008 laboratory test found similar levels of lead in Medifast products, implying that the problem has persisted for 10 years.”
Facebook Comments
Disqus