Hard To Swallow

by louabbott on August 8, 2007

Forbes – Published August 8, 2007

Shares in the vitamin maker were roaring towards an all-time-high above $60 in February 2007. The company was preparing to announce its 20th consecutive quarter of record sales. Its global empire was expanding, with the addition of Malaysia, its 14th country.

That may well have been the zenith of Usana‘s (nasdaq: USNAnews people ) 15-year existence.

On March 19, Usana revealed it was the subject of an informal Securities and Exchange Commission probe into its sales practices. Then, in July, its long-time auditor abruptly and mysteriously resigned.

Now things are getting worse.

Last week, sources told Forbes.com that the FBI had launched a criminal investigation into the company. Usana says it isn’t aware of any such probe. Meanwhile, Usana is suing Barry Minkow, a convicted felon-turned-fraud-buster, who penned a 500-page report alleging that the company’s fantastic performance in recent years came not from selling vitamins but via a pyramid scheme that roped suckers into a multilevel marketing scheme from which few would be able to glean profits.

Read the entire article at Forbes

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

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