HARTFORD, Conn., March 29, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, 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 Utah on behalf of all persons who purchased or otherwise acquired the publicly traded securities of USANA Health Sciences, Inc.("USANA" or the "Company") (Nasdaq:USNA) between July 18, 2006 and March 14, 2007, inclusive, (the "Class Period").
The Complaint alleges that USANA, a company engaged in the manufacture and sale of nutritional and personal care products, and certain of its officers and directors violated Federal Securities laws by issuing a series of false statements regarding the Company's financial results. Specifically, the Complaint alleges that defendants failed to disclose, among other things: (i) that the Company's multi-level marketing strategy was operating as a pyramid scheme; (ii) the bulk of the Company's Associates sold not to end customers, but to other associates; (iii) that the USANA was experiencing a high associate turnover rate, resulting in an unsustainable sales force; and (iv) 87% of the Company's Associates were losing money. The Complaint further alleges that, as a result of these false statements and omissions, USANA common stock traded at artificially inflated prices.
On March 15, 2007, the Fraud Discovery Institute, Inc. ("FDI") issued a press release and The Wall Street Journal published an article concerning a three-year investigation by the FDI that had revealed that USANA's multi-level marketing system was an unsustainable pyramid scheme. On this news, the price of the Company's stock declined $8.92 per share, or 15%, to close on March 15, 2007 at $49.85 per share.
If you are a member of the class, you may, no later than May 25, 2007, 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 Izard, P.C. 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 Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snilaw.com.