Okay, I admit it. That headline comes straight from Zac Bissonette at Bloggingstocks. I couldn’t help it though. It’s just so…. so…. right.
In July, the Texas Attorney General filed suit against Mannatech to stop the company from using illegal sales and marketing practices. The suit says that company associates have claimed the products cured, mitigated, treated, and prevented diseases such as cancer and autism. Such claims violate of state and federal laws.
The Wall Street Journal reported in May that speakers at company events were claiming Mannatech’s sugar pills were curing various illnesses.
CEO Sam Caster denies that Mannatech ever made such claims. Caster is now resigning as CEO but staying on as chairman of the board. The company says he will be focusing on changing the marketing practices of Mannatech, and he will be working with “field sales leaders.”
Good thing Mannatech’s press release about Caster’s change in duties didn’t mention the lawsuit and its relationship to this change. One would hate to remind shareholders of the lawsuit, especially when the company’s stock is doing so poorly.