Citron Claims USANA (USNA) is Running Illegal Ops in China and Not Disclosing Risks
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Shares of USANA Health Sciences, Inc. (NYSE: USNA) fell out of bed mid-day Thursday following a negative report from noted short selling firm Citron Research.
Citron discusses the company's China activity, noting negative China SAIC response to inquires about USANA products, recent China law enforcement actions against USANA reps and their own investigation that "reveals Usana managers actively participating in creating illegal pyramid compensation scheme to circumvent China's anti-MLM laws."
The firm said USANA is not disclosing the real risks of their business to investors or the SEC.
Shares of USNA fell as much as 10.5 percent following the report but have since recovered and last traded down 3.7 percent to $42.
Link to full Citron Research report
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Citron discusses the company's China activity, noting negative China SAIC response to inquires about USANA products, recent China law enforcement actions against USANA reps and their own investigation that "reveals Usana managers actively participating in creating illegal pyramid compensation scheme to circumvent China's anti-MLM laws."
The firm said USANA is not disclosing the real risks of their business to investors or the SEC.
Shares of USNA fell as much as 10.5 percent following the report but have since recovered and last traded down 3.7 percent to $42.
Link to full Citron Research report
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