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Consumer Health Digest #07-28
July 24, 2007
Current # of subscribers: 11,829
[...]
Another class action suit filed against USANA.A lawsuit seeking class action status has been
filed in California State Court on behalf of
thousands of individuals who became "Associates"
(distributors) of USANA Health Sciences Inc. on
or after January 1, 1995 in California. The
plaintiffs accuse USANA and several of its
officers and directors of fraud and deception.
Among other things, the suit alleges USANA (a)
exaggerated the business opportunity, (b) failed
to disclose that 87% of active distributors were
losing money, (c) misrepresented the credentials
of its advisory board, and (d) basically operated
a pyramid scheme requiring a constant churn in
its sales force. The lawsuit seeks damages for
distributors left with thousands of dollars of
losses each after paying for business "kits" and
products they say they couldn't sell. Earlier
this year, similar class-action suits were filed
on behalf of shareholders. The new complaint is
posted at
http://www.casewatch.org/civil/usana/complaint.shtml###
Other issues of the Digest are accessible through
http://www.ncahf.org/digest06/index.html. For
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Stephen Barrett, M.D.
Board Chairman, Quackwatch, Inc.
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