Mannatech CEO quits
This article was originally published in The Tan Sheet
Sam Caster, co-founder of Coppell, Texas-based multilevel dietary supplements marketer Mannatech, resigns as the firm's chief executive Aug. 21 amidst litigation charging the company engaged in deceptive sales practices. Caster will retain his position as chairman of the board. President and COO Terry L. Persinger, who will retire from the company in June 2008, has been appointed interim president and CEO while Mannatech seeks a permanent replacement. Additionally, Exec VP-Global Operations Terence L. O'Day will assume responsibility as COO. The Texas attorney general filed a lawsuit in July seeking to shut down Mannatech, due to its alleged use of false claims in marketing. However, Mannatech has vowed to fight the suit (1"The Tan Sheet" July 16, 2007, p. 11)...
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Wayne Badovinus is appointed president and CEO of the multilevel dietary supplements marketer. Badovinus' 43-year career in consumer brands includes senior management positions with Eddie Bauer, Williams-Sonoma and Nordstrom, Coppell, Texas-based Mannatech says June 6. He will take over executive duties from Terry Persinger, who will continue on the Mannatech board, the firm says. Mannatech co-founder and chairman Sam Caster resigned as CEO in August 2007 as the firm faced class-action claims that it had caused its stock to trade at inflated levels by failing to adequately monitor how its associates advertised its products (1"The Tan Sheet" Aug. 27, 2007, In Brief). The firm has agreed to pay $11.25 million to settle the allegations (2"The Tan Sheet" March 24, 2008, In Brief)...
Mannatech reports a loss of $3.6 million for its fiscal 2007 fourth quarter due to declining sales and $4.7 million in litigation expenses. In August, co-founder and CEO Sam Caster resigned amid Mannatech's defense of the class action (1"The Tan Sheet" Aug. 27, 2007, In Brief). Sales for the October-December period fell 6.5 percent to $99.9 million from $106.8 million. The firm says North American sales dropped 20 percent, but international sales rose 27 percent. In a March 14 release, President and CEO Terry Persinger said the firm will focus on global business development and cost management and expects better results in the later part of the year...
Texas Attorney General Greg Abbott has filed a lawsuit seeking to shut down Mannatech, but the firm's executives advise their multi-level marketing associates to continue conducting business as usual, predicting a "marathon" in defending the suit
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