Mannatech Investors File Class-Action Suits
Several lawsuits have been filed to seek class-action status on behalf of Mannatech investors who are charging that the company caused Mannatech’s shares to trade at artificially inflated levels by misrepresenting the Company’s prospects and permitting its “independent distributors” to make improper claims for products. The first such suit (shown below) shown below, which was filed in August 2005, alleges: The defendants had issued false statements about the effectiveness of Mannatech products that inflated the price of its stock. The defendants failed to adequately control the conduct of distributors who exaggerated what the products could do. On May 9, 2005, Barron’s published a story that detailed Mannatech CEO Samuel Caster’s history of legal difficulties and questioned the company’s sales associates’ methods and their “seemingly irrepressible inclination . …
Continue Reading >
