WASHINGTON–LAWFUEL – The Law Newswire – The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit on behalf of its client and all persons who purchased the securities of USANA Health Sciences, Inc. (“USANA” or the “Company”) (NASDAQ:USNA) from July 18, 2006 through March 14, 2007, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the District of Utah. Based on recent additional allegations of wrongdoing at USANA it is possible that the Class Period may be extended to include persons who purchased USANA stock after March 14, 2007.
The complaint charges that USANA and several of its officers violated the Securities Exchange Act of 1934. According to the complaint, the Company and the Defendant officers improperly failed to disclose and misrepresented material adverse facts, including the following: the Company’s business model was unsustainable because of a high level of attrition within the its sales force; the Company’s multi-level marketing model operated essentially as a pyramid scheme; the majority of the Company’s Associates did not sell to consumers, but to other Company Associates; over 87 percent of the Company’s Associates were losing money on their sales efforts; the Company lacked adequate internal and financial controls; and, as a result of the foregoing, the Company’s statements about its future business prospects lacked a reasonable basis when made.
USANA develops and manufactures nutritional, personal care, and weight management products that are sold directly to Preferred Customers and Associates throughout the United States and in other countries.
On March 15, 2007, the Fraud Discovery Institute and The Wall Street Journal revealed to investors serious problems at USANA. Immediately following these disclosures, shares of the Company’s stock declined $8.92, or 15 percent, to close on March 15, 2007 at $49.85 per share, on unusually heavy trading volume. As subsequent adverse information about the Company surfaced, shares of the Company’s stock have declined even further.
If you purchased or otherwise acquired USANA securities from July 18, 2006, through and including March 14, 2007 (or through a later date, if the Class Period is extended) you may, no later than May 25, 2007, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff. Any member of the proposed class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., London, New York, Philadelphia and Chicago, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm’s website at www.cmht.com.
The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.
If you have any questions about this notice or the action, or with regard to your rights, please contact any of the following:
Steven J. Toll, Esq.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Avenue, N.W.
West Tower – Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
E-mail: [email protected], or [email protected]