Is Mannatech a Scam?

by Pete
(CA)

Mannatech Corporation - is a Multilevel Marketing, which was started in 1993, and headquartered in Texas.

It is a publicly traded company on NASDAQ, and has offices located, internationally.

Though the company the company has been praised by Forbes, and Business Week Magazine, you cannot ignore the public scrutiny it has undergone, mainly due to a series of legal problems.

1.) On September 9, 2005 a class-action lawsuit was filed against Mannatech for alleged violations of the Securities Exchange Act.

The main issue of the Class Action Law Suit was - "issuing a series of material misrepresentations". In 2008, Mannatech agreed to pay $11.25 million dollars to the Plaintiff class.

2.) On October 27, 2006, Mannatech came under investigation by the Texas Attorney General for alleged violations to the state's Deceptive Practices Trade Act. The state's Attorney General, Greg Abbott, then formally charged the corporation, and the corporation's founder, Sam Caster with a series of charges relating to violations of the state's Deceptive Practices Trade Act. Mannatech settled the civil complaint on February 26, 2009 by agreeing to pay $4 million in restitution to clients who purchased products and $2 million to the state to cover its costs in the case.

So, is Mannatech a scam? probably not, but it definitely has had its problems when it comes to accurate representation.

So beware!