GNC stock took a nosedive on Tuesday amid fears the embattled nutrition store is about to confront a new legal challenge.
GNC shares plummeted by as much as 27% after the U.S. Department of Justice revealed plans to announce criminal and civil charges related to the unlawful advertising and sale of dietary supplements.
The DOJ did not say who it is charging. More than federal government agencies are set to participate in a press conference scheduled for 3:30 p.m. ET on Tuesday.
Wall Street immediately assumed the charges would be lobbed at GNC, which has been caught up in legal troubles lately. Oregon’s attorney general accused GNC last month of selling dietary substances laced with an “amphetamine-like” substance. GNC denied the Oregon claims and has said it will “vigorously defend” itself against the charges.
GNC did not immediately respond to a request for comment on the unusual stock movement and the DOJ press conference.
GNC’s shares fell so fast in value that trading was briefly halted. The stock has since rebounded from the lows, but is still off 12% in mid-afternoon trading.
The DOJ announcement weighed on other companies that sell health and nutritional products. Shares of GNC rival Vitamin Shoppe slumped 8%, while Herbalife fell 4%.
GNC shares have plummeted 42% so far this year. Last month the company reported third-quarter numbers that dramatically missed the mark due to a botched discounting strategy.
–CNNMoney’s Jackie Wattles contributed to this report.