Multilevel marketer settles lawsuit

by louabbott on July 28, 2008

Deseret News – Published July 28, 2008

A Utah multilevel marketing company has settled a dispute with a critic who agreed to stop disparaging nutritional supplement maker USANA Health Sciences Inc.

Self-proclaimed fraud buster Barry Minkow said he took a critical report off his Web site. He shut down another Web site devoted to USANA’s dealings in China, and he pulled interviews with failed USANA distributors from YouTube.

Other terms weren’t disclosed, but USANA said Monday it was happy with the settlement.

USANA said it will withdraw its lawsuit against Minkow and his San Diego-based Fraud Discovery Institute from U.S. District Court in Salt Lake City.

USANA sued Minkow for defamation and stock manipulation, but most of those claims were thrown out March 3 by U.S. District Judge Tena Campbell. Separately from the settlement, the company paid $142,510 in attorney fees to Minkow and his institute under an order from federal Magistrate Samuel Alba.

Minkow came out with his first critical report of USANA in February 2007 when he bought “put” options on the stock in a legal bet the price would fall. USANA had accused him of market manipulation, which he denied. He agreed never to trade in USANA stock again.

Read the entire article at Deseret News

Also, read our company overviews: Herbalife Facts, News and Review, Usana Facts, News and Review

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