Coppell-based Mannatech reaches $11.25 million settlement in securities class-action lawsuit

by PegNews wire

The company officially admits "no wrongdoing."

COPPELL — Mannatech, Incorporated today announced that the company and counsel for the lead plaintiff have reached a settlement in the securities class action lawsuit styled Jonathan Crowell v. Mannatech, Inc., et al., Civil Action No. 3:07-CV-00238-K, in the United States District Court for the Northern District of Texas.

Photo not provided by Mannatech

The company's claims that their high-performance supplements came directly from Heaven could not be independently verified

The litigation is the consolidation of three securities class action complaints filed against Mannatech and certain of its officers and directors in August and September 2005. The settlement class consists of the purchasers of Mannatech stock during the period August 10, 2004 through July 30, 2007.

This settlement, which is subject to final Court approval, would resolve all the claims in the litigation. Without admitting any liability or wrongdoing of any kind, Mannatach has agreed to pony up $11.25 million to the plaintiff class.

The lawsuits originally surfaced after a May 2005 Barron's article, which questioned the legitimacy of some of Mannatech's business and sales practices. The lawsuits claimed that Mannatech's sales staff routinely made false claims about the benefits of their products.

Source: Mannatach