Mannatech facing threat from SEC

by louabbott on September 5, 2008

Dallas News – Published September 5, 2008

The enforcement division of the Securities and Exchange Commission threatened Friday to take action against Mannatech Inc., the Coppell-based maker of nutritional supplements, citing its conduct in firing an accounting firm last year.

The threat, in the form of a Wells notice, was sent to the company, its chief financial officer and the chairman of its audit committee, according to Mannatech.

The Wells notice indicates that the SEC’s enforcement division plans to ask the commission to begin cease-and-desist proceedings against Mannatech. However, the notice gives Mannatech a chance to defend itself and possibly halt further action.

Mannatech’s SEC problems are on top of a complaint filed by the Texas attorney general’s office last year. In July 2007, the attorney general filed a lawsuit accusing Mannatech of exaggerating the therapeutic benefits of its products for people with cancer, Down syndrome, cystic fibrosis and other serious conditions. That suit is pending in Travis County District Court.

Read the entire article at the Dallas News

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

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