USANA

USANA Sued for Fraud and Deceit

A lawsuit seeking class action status has been filed in California State Court on behalf of thousands of individuals who became “Associates” (distributors) of USANA Health Sciences Inc. on or after January 1, 1995 in California. The plaintiffs accuse USANA and several of its officers and directors of fraud and deception. Among other things, the suit alleges USANA (a) exaggerated the business opportunity, (b) failed to disclose that 87% of active distributors were losing money, (c) misrepresented the credentials of its advisory board, and (d) basically operated a pyramid scheme requiring a constant churn in its sales force. The lawsuit seeks damages for distributors left with thousands of dollars of losses each after paying for business “kits” and products they say they couldn’t sell. Earlier …