Mannatech Receives Wells Notice From SEC

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In July of last year, the Attorney General of Texas filed a lawsuit againstĀ  multi-level marketing company Mannatech (NASDAQ:MTEX), alleging the company used illegal sales and marketing practices.

Then in August, the company’s CEO, Sam Caster, stepped down. Although he resigned as CEO, he stayed on as chairman of the board.

In October, Grant Thornton, the company’s auditing firm, was fired. Mannatech issued a press release which stated that Grant Thornton was dismissed because they wanted the company to relieve Sam Caster of all duties, and the board said no. Mannatech said there were no disagreements about accounting principles or audit matters. Continue reading