New York, NY – Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the District of New Mexico on behalf of shareholders who purchased or otherwise acquired the securities of Mannatech, Inc. (“Mannatech” or the “Company”) (NasdaqNM: MTEX) between August 10, 2004 and May 8, 2005, inclusive (the “Class Period”).
The Complaint charges Mannatech and Samuel L. Caster with violations of federal securities laws. Plaintiff claims defendants issued false or misleading statements concerning the Company’s business and operations, which caused Mannatech’s stock price to become artificially inflated, inflicting damages on investors. Mannatech operates in the field of “glyconutrients” and designs and develops proprietary nutritional supplements, topical products and weight management products, sold primarily by purportedly independent sales associates and members through a network-marketing system -- commonly known as “multilevel marketing.” The Complaint alleges Mannatech failed to adequately supervise and/or monitor the conduct of its associates, including those who maintain websites that prominently display misleading testimonials and/or falsely suggest that Mannatech products are effective in the treatment and prevention of certain specific diseases. The Complaint alleges that, unbeknownst to public investors, the true facts which defendants knew and/or recklessly disregarded and failed to disclose to the investing public during the Class Period, included: (i) that the Company’s internal controls were inadequate, and failed in several key aspects, resulting in inadequate monitoring and supervision of the Company's associates; (ii) as a consequence of defendants’ failure to supervise, Mannatech associates made false and unfounded claims concerning the efficacy of the Company’s products; and (iii) as a result of the foregoing, defendants’ statements with respect to Mannatech’s operations, performance and prospects were lacking in any reasonable basis when made.
On May 9, 2005, an article published in Barron’s revealed the misleading nature of claims made on certain Mannatech associates’ websites. This news shocked the market, causing the price of Mannatech shares to plummet more than 26 percent in one day, thereby damaging investors. The next day, May 10, 2005, Mannatech shares fell an additional 19 percent as a result of this news.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Mannatech securities on any exchange between August 10, 2004 and May 8, 2005, and sustained damages, you may, no later than October 17, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi, Christopher S. Hinton or Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
Christopher S. Hinton
Bradley P. Dyer
(800) 497-8076 or (212) 682-1818
Fax: (212) 682-1892