As stocks plunge, Usana sues Minkow over report

by louabbott on March 17, 2007

Deseret News – Published March 17, 2007

After watching its stock plunge 15 percent on Thursday, Usana Health Sciences filed a defamation lawsuit against Barry Minkow, a San Diego resident, who has claimed that the Salt Lake-based multi-level marketing company is little more than an over-priced pyramid scheme.

In a complaint filed Thursday in U.S. District Court in Salt Lake City, Usana charges that Minkow authored and published a report “calculated to defame Usana and lower its stock price, so as to allow Minkow to benefit from his short position in Usana’s publicly-traded stock.”

Minkow distributed a 500-page report to officials at the U.S. Securities and Exchange Commission, the Federal Bureau of Investigation and the Internal Revenue Service.

The Wall Street Journal picked up the story, running it Thursday on the cover of its Money & Investing section.

That helped to fuel a sell-off of Usana’s shares, which closed down $8.92 at $49.85 Thursday on the Nasdaq Stock Market. On Friday, Usana shares lost another 60 cents, or 1.2 percent, to $49.25.

Read the entire article at Deseret News

Watch a free video presentation about pyramid schemes at MLM The Whole Truth

Also, read our company overview: Usana Facts, News and Review

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