Mannatech To Pay $6 Million To Settle Texas Lawsuit On Sales

by louabbott on February 26, 2009

Paris, France  February 26th, 2009

Mannatech Inc. (MTEX) agreed to pay $6 million to settle claims in its home state of Texas regarding sales practices and some salespeople pitching products as cures for various diseases.

Meanwhile, former Chairman Sam Caster reached a separate deal with the state Attorney General’s office that includes a $1 million fine.

The payments, which the dietary-supplements maker stressed aren’t a fine, will go to consumer restitution ($4 million) and coverage of Texas regulators’ expenses ($2 million).
President and Chief Executive Wayne Badovinus said the company has “made significant changes to our business before and since the filing occurred” in 2007. The practices in question occurred from 2002 to 2006, Mannatech said.

The company in June settled several shareholder lawsuits which accused the company of making false claims and using improper sales tactics to boost sales and the value of the stock. Mannatech paid $850,000 in attorney’s fees and didn’t admit to any wrongdoing.

Read the entire article at EasyBourse

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

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