Apr 4
Class Action Lawsuit Filed Against USANA Health Sciences Today
The shareholders of USANA have filed a lawsuit against USANA Health Science citing
“the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them:
- that the Company’s business model was unsustainable because it required the constant recruitment of new Associates due to a high level of attrition within the Company’s sales force
- that USANA’s multi-level marketing model operated as a pyramid scheme
- that the majority of the Company’s Associates did not actually sell to consumers, but rather to other Company Associates
- that over 74 percent of the Company’s Associates were failing within the first year of joining the Company
- that over 87 percent of the Company’s Associates were losing money instead of receiving compensation for their sales efforts
- that USANA lacked adequate internal and financial controls; and
- that, as a result of the foregoing, the Company’s statements about its future business prospects and projections were lacking in a reasonable basis when made.”
Here’s the source:
http://www.marketwire.com/mw/release_html_b1?release_id=235354
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