Apr 4

Class Action Lawsuit Filed Against USANA Health Sciences Today

Category: Reviews, Work

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:

  1. 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
  2. that USANA’s multi-level marketing model operated as a pyramid scheme
  3. that the majority of the Company’s Associates did not actually sell to consumers, but rather to other Company Associates
  4. that over 74 percent of the Company’s Associates were failing within the first year of joining the Company
  5. that over 87 percent of the Company’s Associates were losing money instead of receiving compensation for their sales efforts
  6. that USANA lacked adequate internal and financial controls; and
  7. 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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