Usana Health Sciences Lawsuit Dismissed
Utah State Court Dismisses Shareholder Lawsuit Against Usana Health SciencesUsana Health Sciences Inc., which makes nutritional, personal care and weight management products, said Thursday a Utah state court dismissed a shareholder lawsuit related to claims the company was operating a pyramid scheme.
The lawsuit was filed against Usana and some of its directors and executives in September.
The company said it filed a motion to dismiss the case, which the plaintiff agreed to do with prejudice, meaning the complaint can't be refiled.
Usana has been criticized by San Diego investigator Barry Minkow for its network marketing business model _ which some have lableled a pyramid scheme _ and declining stock price.
The company was embroiled in controversy for most of 2007, with several lawsuits filed against the business. A lawsuit filed by independent distributors in June claimed distributors lost thousands of dollars after buying business kits and products they said could not be sold at elevated prices. Some distributors were recruited by Dr. Ladd R. McNamara, who left the Usana's medical advisory board amid a report his license was suspended in Ohio and Georgia.
