Los Angeles, CA - Notice is hereby given that Glancy Binkow & Goldberg LLP filed the first class action lawsuit against Mannatech, Inc. (“Mannatech” or the “Company'') (Nasdaq: MTEX) on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired Mannatech securities between August 10, 2004 and May 8, 2005 (the "Class Period"). The class action lawsuit was filed in the United States District Court for the District of New Mexico. Glancy Binkow & Goldberg LLP is continuing its investigation into Mannatech’s misconduct
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 new 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.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.