Vitamin Marketer USANA Hit With Proposed Class-Action Lawsuit

by louabbott on June 27, 2007

Insuarance Journal – June 27, 2007

Independent distributors have filed a lawsuit accusing USANA Health Sciences Inc. of fraud and deception, the latest public-relations blow for the marketer of vitamins and nutritional supplements.

The lawsuit, which seeks class-action status, was filed in California state court on behalf of hundreds of low-level distributors in California, which has tough multilevel marketing laws.

Veteran San Diego class-action lawyer Alexander M. Schack is seeking an injunction stopping Salt Lake City-based USANA from doing business in California, one of the company’s biggest markets. The lawsuit seeks damages for “downline” distributors left with thousands of dollars of losses each after paying for business “kits” and products they say they couldn’t sell at inflated prices.

“Despite a diligent effort consisting of time, money and energy, my USANA business failed miserably,” Christopher Crane, the 23-year-old lead plaintiff, says in an affidavit.

Read the entire article at the Insurance Journal

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

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