Dreier LLP Files Class Action Lawsuit Against USANA Health Sciences, Inc. (USNA)
Monday March 26, 7:40 pm ET
NEW YORK, March 26 /PRNewswire/ — Dreier LLP today announced that a class action lawsuit was commenced in the United States District Court for the District of Utah, on behalf of purchasers of the common stock of USANA Health Sciences, Inc. (“USANA” or the “Company”) (Nasdaq: USNA – News) during the period July 18, 2006 through March 14, 2007, inclusive (the “Class Period”). The complaint alleges violations of the federal [tag]securities laws[/tag], including Section 10(b) of the Securities Exchange Act of 1934.
If you purchased USANA common stock during the Class Period, you may be a member of the proposed Class. You must move the Court on or before May 25, 2007 if you wish to serve as a lead plaintiff. Lead plaintiffs must meet certain legal requirements. To learn more about this lawsuit or if you are interested in serving as a lead plaintiff, please contact plaintiff’s counsel, Lee A. Weiss ([email protected]) of Dreier LLP at 800-952-8897. Class members may retain counsel of their choice and move the Court to serve as a lead plaintiff, or may choose to do nothing and remain absent class members.
USANA is a health sciences company engaged in the manufacture and sale of nutritional and personal care products headquartered in Salt Lake City, Utah. The Complaint alleges that, throughout the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results and failed to disclose, among other things, that: (1) the Company’s multi-level marketing system was operating as a [tag]pyramid scheme[/tag]; (2) the majority of the Company’s Associates did not sell to consumers, but sold to other Associates; (3) the Company was experiencing an exceedingly high Associate attrition rate, resulting in an unsustainable sales force; (4) 74% of the Company’s new Associates were failing within the first year; and (5) 87% of the Company’s Associates were losing money.
The Complaint further alleges that, as a result of these [tag]false statements[/tag] and omissions, USANA common stock traded at artificially inflated or distorted prices. On March 15, 2007, the Fraud Discovery Institute issued a press release and The Wall Street Journal published an article concerning a three-year investigation by the Fraud Discovery Institute that had revealed that USANA’s multi-level marketing system was an unsustainable pyramid scheme. In reaction to this news, the price of the Company’s stock declined $8.92 per share, or 15%, to close on March 15, 2007 at $49.85 per share, on unusually heavy trading volume. Plaintiff seeks to recover damages on behalf of all members of the proposed Class.
The plaintiff is represented by Dreier LLP. Dreier LLP’s Class Action Litigation Group has vast experience representing domestic and foreign institutional and individual investors in securities and other class actions throughout the country. The partners who head Dreier LLP’s Class Action Litigation Group have successfully prosecuted securities fraud class actions in a wide variety of industries and have played a significant role in cases that have resulted in some of the largest securities class action settlements.