GNC Holdings reaches an agreement with New York’s Attorney General Monday

GNC Holdings witnessed 7% rise in the its share price Monday after reaching an agreement with the New York administration in which the company agreed to conduct new and more thorough testing procedures for herbal supplements.

The Pittsburgh-based company was one of four retailers, which was accused by New York of selling supplements whose ingredients were not listed on the labels. The products in question were five Herbal Plus supplements, which include gingko biloba, St. John's wort, ginseng, echinacea and saw palmetto.

On Monday, GNC Holdings said it has reached an agreement with New York's attorney general Eric T. Schneiderman that its products are in full compliance with the FDA rules have been restored to stores in New York.

GNC affirmed that it provided the results of tests conducted both by independent third parties and its own internal reviews. The tests not only provided the evidence that its products are safe, but also showed that they contain all items listed on the labels.

According to a release from the attorney general's office, the company also agreed to adopt testing standards for herbal supplements that exceed FDA requirements.

The shares of the company briefly hit a 52-week high during Monday trading and the stock ended up nearly 7% from Friday's close, at $49.26 per share.

GNC's CEO, Michael G. Archbold said, "As our testing demonstrated, and this agreement affirms beyond any doubt, our products are not only safe and pure but are in full compliance with all regulatory requirements".

GNC has agreed to begin using DNA barcoding testing within 18 months. GNC was the first of the four companies, to announce an agreement in the supplements case. Other others are Walgreen, Target and Wal-Mart.