|
Mannatech, Inc. - A Client of Networx Online Embattle Lawsuits
Mannatech - Client of Networx Online Embattle Lawsuits
Same pattern exists for Ameriplan, USA and Herbalife - These companies have Class Action Lawsuits
Item 1. Legal Proceedings
We have been sued in three securities class action lawsuits in the United States District Court for the District of New Mexico, which remain pending.
• First, on August 1, 2005, Mr. Jonathan Crowell filed a putative class action lawsuit against the Company and Mr. Samuel L. Caster, our Chief Executive Officer, on behalf of himself and all others who purchased or otherwise acquired our common stock between August 10, 2004 and May 9, 2005, inclusive, and who were damaged thereby.
• Second, on August 30, 2005, Mr. Richard McMurry filed a class action lawsuit against the Company, Mr. Caster, Mr. Terry L. Persinger, our President and Chief Operating Officer, and Mr. Stephen D. Fenstermacher, our Chief Financial Officer.
• Third, on September 5, 2005, Mr. Michael Bruce Zeller filed a class action lawsuit against the Company, Mr. Caster, Mr. Persinger, and Mr. Fenstermacher.
The allegations in these class action lawsuits are substantially identical. The complaints allege we violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, claiming that defendants artificially inflated the value of our common stock by knowingly allowing independent contractors to recklessly misrepresent the efficacy of our products during the purported class period.
On December 12, 2005, the Court granted a motion to consolidate the three putative class action lawsuits into one civil action styled “In re Mannatech, Incorporated Securities Litigation.” Also, on January 4, 2006, the Court entered an order appointing “The Mannatech Group,” consisting of Mr. Austin Chang, Ms. Naomi S. Miller, Mr. John C. Ogden, and the Plumbers and Pipefitters Local 51 Pension Fund, as lead plaintiffs and appointing the law firms Lerach Coughlin Stoia Geller Rudman & Robbins LLP, as lead counsel, and Freedman Boyd Daniels Hollander & Goldberg, P.A., as liaison counsel, for the putative class. On March 3, 2006, the lead plaintiffs filed an amended consolidated class action complaint.
Source: Sec.gov
|