USANA Health Sciences Files Defamation Lawsuit Against Fraud Discovery Institute And Barry Minkow - Quick FactsThursday, USANA Health Sciences Inc. said that it has filed a lawsuit against the Fraud Discovery Institute and Barry Minkow in U.S. District Court in Salt Lake City, Utah for defamation. The company said that it believes Minkow's statements are part of a coordinated public relations program financed by a paying client. According to a report in the March 15, 2007 edition of The Wall Street Journal, Minkow had bought 'put' options on USANA's shares in a bet the price will fall.
USANA said that this is a campaign to manipulate its stock price that is being orchestrated by an individual who served 7 years in prison for stock fraud and that Minkow's assertions about USANA's sales model are false and misleading. The company noted that it markets and sells premium nutritional supplements to thousands of customers, and its business model is regulated by the Federal Trade Commission.
