Mannatech (MTEX) Pays $6 Million to Settle Civil Complaint with Texas Attorney General

February 26, 2009 3:32 PM EST

Mannatech, Incorporated (NASDAQ: MTEX) has reached a settlement with the Texas Attorney General's office for a July 2007 civil complaint.

The Texas Attorney General filed a civil complaint in July 2007 related to regulatory compliance and sales practices that predominantly took place from 2002 to 2006. Under the proposed settlement, pending court approval, Mannatech will pay $6 million, of which $4 million is designated for restitution to consumers and $2 million is designated to cover fees and expenses of Texas regulators. The settlement does not include any fine or penalty.

Additionally, Mannatech implemented a six-month, money-back guarantee on all products for any reason whatsoever. Under the settlement, Mannatech will make additional changes to its operating practices and compliance program and provide periodic reporting to the Texas Attorney General.

In tandem with the company's settlement, the Texas Attorney General also reached a settlement with Sam Caster, who was named in the original complaint, which includes a fine of $1 million.

Mannatech, Incorporated is a global wellness solution provider. The Company develops and sells a variety of nutritional supplements, topical and skin care products, and weight-management products that target optimal health and wellness. [SM]

Related Categories

Corporate News

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?