HARTFORD, Conn., Sept. 7, 2005 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of New Mexico on behalf of all persons who purchased the securities of Mannatech, Inc (Nasdaq:MTEX) ("Mannatech" or "the Company") between August 10, 2004, and May 8, 2005 (the "Class Period").
The Complaint alleges that Mannatech and certain of its officers, directors and violated federal securities laws. Specifically, Mannatech failed to adequately supervise and monitor the conduct of its associates, including those who maintain websites that prominently display misleading testimonials that Mannatech products are effective in the treatment and prevention of certain specific diseases. The Complaint alleges that defendants failed to disclose the following: (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; and (ii) as a consequence of defendants' failure to supervise, Mannatech associates made false and unfounded claims concerning the efficacy of the Company's products.
On May 9, 2005, an article published in Barron's revealed the misleading nature of claims made on certain Mannatech associates' websites. On this news, the price of Mannatech shares to plummet more than 26%. The next day, May 10, 2005, Mannatech shares fell an additional 19%.
If you are a member of the class, you may, no later than October 31, 2005, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca