BOCA RATON, Fla.–LAWFUEL – Class Actions Lawsuit News –Lerach Coughlin Stoia Geller Rudman & Robbins LLP (“Lerach Coughlin”), Court-appointed Lead Counsel in the securities class action against Mannatech, Inc. (Nasdaq: MTEX; “Mannatech” or the “Company”) and various individual defendants, provides the following update regarding the lawsuit captioned Crowell v. Mannatech, Inc., et al, Civil Action No. 3:07-CV-00238, pending in the United States District Court, Northern District of Texas, Dallas Division.
On July 5, 2007, Texas Attorney General Greg Abbot filed a complaint against Mannatech and various individuals in the Travis County District Court. The complaint, consistent with the allegations in the pending securities class action, accuses the Company of illegal and deceptive marketing practices and stems from an investigation by state authorities which came to light in October 2006. The Texas Attorney General alleges that Mannatech and its affiliates made exaggerated and unsupported claims about the therapeutic benefits of its dietary supplements and nutritional products in violation of state and federal law.
Following the disclosure of the filing of the Texas Attorney General’s complaint, on July 6, 2007, Mannatech’s stock price plummeted 23%, or nearly $3.75 per share, to close at $12.25 per share on extremely high trading volume.
On July 12, 2007, as a result of the July 5, 2007 disclosure of the Texas Attorney General complaint and the July 6, 2007 stock drop, Lerach Coughlin filed a Second Amended Consolidated Class Action Complaint for Securities Fraud (the “Second Amended Complaint”), which included additional claims in connection with these events. The Second Amended Complaint was filed on behalf of purchasers of Mannatech common stock between the period of August 10, 2004 through July 5, 2007.
If you wish to discuss your rights as an investor, have any information relevant to the pending securities class action, or have any questions regarding the status of the securities class action, please contact David J. George, Esq. or Robert J. Robbins, Esq. at Lerach Coughlin in Boca Raton, FL, toll free, at (888) 262-3131.