Texas AG Files Suit Alleging Mannatech Uses False Claims In Marketing
This article was originally published in The Tan Sheet
Executive Summary
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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Mannatech settles Texas complaint
The Coppell, Texas-based multilevel supplement marketer agrees to pay $6 million to resolve allegations in a 2007 state lawsuit that it exaggerated therapeutic benefit claims for supplements from 2002 to 2006. The Texas attorney general's office says Mannatech agreed to pay $4 million in restitution to consumers and $2 million to cover regulators' expenses (1"The Tan Sheet" July 16, 2007, p. 11). Under the final judgment, the firm agrees "not to advertise or otherwise claim" its supplements "can cure, treat, mitigate or prevent disease." The firm's founder and former CEO, Sam Caster, who was named in the original complaint, will pay a $1 million fine. Mannatech admits no wrongdoing but says it has made "significant changes to its operating practices" in the past two years
Mannatech settles Texas complaint
The Coppell, Texas-based multilevel supplement marketer agrees to pay $6 million to resolve allegations in a 2007 state lawsuit that it exaggerated therapeutic benefit claims for supplements from 2002 to 2006. The Texas attorney general's office says Mannatech agreed to pay $4 million in restitution to consumers and $2 million to cover regulators' expenses (1"The Tan Sheet" July 16, 2007, p. 11). Under the final judgment, the firm agrees "not to advertise or otherwise claim" its supplements "can cure, treat, mitigate or prevent disease." The firm's founder and former CEO, Sam Caster, who was named in the original complaint, will pay a $1 million fine. Mannatech admits no wrongdoing but says it has made "significant changes to its operating practices" in the past two years
Mannatech settles Texas complaint
The Coppell, Texas-based multilevel supplement marketer agrees to pay $6 million to resolve allegations in a 2007 state lawsuit that it exaggerated therapeutic benefit claims for supplements from 2002 to 2006. The Texas attorney general's office says Mannatech agreed to pay $4 million in restitution to consumers and $2 million to cover regulators' expenses (1"The Tan Sheet" July 16, 2007, p. 11). Under the final judgment, the firm agrees "not to advertise or otherwise claim" its supplements "can cure, treat, mitigate or prevent disease." The firm's founder and former CEO, Sam Caster, who was named in the original complaint, will pay a $1 million fine. Mannatech admits no wrongdoing but says it has made "significant changes to its operating practices" in the past two years