Here is the statement from Mannatech:
Mannatech, Incorporated (NASDAQ: MTEX), a
leading developer and provider of dietary supplements and skin care
solutions, today announced a number of compliance initiatives related to
sales and marketing activities utilized by the Company’s independent sales
associates. "On behalf of Mannatech’s Board of Directors and executive
management team, we are announcing that significant steps have been taken
to address a wide range of issues which have been under review," said Stan
Fredrick, lead director of the Company’s Board of Directors. "Our
management team will continue reviewing Company policies and procedures for
ongoing improvements and industry best practices." The following list
outlines these initiatives
1. Associates should immediately cease the use of all materials in any
form, including educational materials, that link the benefits of
glyconutrients in association with any particular disease, disease
process, or disease claim in conjunction with the sale of Mannatech
products.
2. Third party vendor literature is no longer permitted to be sold or
distributed at Mannatech corporate or associate sponsored events.
3. The use of testimonials that link the benefits of Mannatech products
in association with any particular disease, disease process, or
disease claim will not be permitted in conjunction with the sale of
Mannatech products.
4. Additional resources for Web site compliance -- Mannatech has
contracted with a third-party service provider for additional support
in screening potential non-compliant Web sites, issuing automated
cease and desist letters, and following up with additional reviews of
offending Web sites. Mannatech is expanding its internal compliance
department with the addition of five full-time employees who will
provide in-house services supporting these initiatives.
"These initiatives are the result of an ongoing review of the Company’s
compliance policies and reinforce the Company’s tone at the top," said
Gerald Gilbert, chairman of the Compliance Committee of the Board of
Directors.
About Mannatech
Mannatech, Incorporated is a global wellness solutions provider of
innovative, high-quality, proprietary nutritional supplements, topical and
skin care products, and weight management products sold through independent
associates and members located in the United States and the international
markets of Canada, Australia, the United Kingdom, Japan, New Zealand, the
Republic of Korea, Taiwan, Denmark, and Germany.
Please Note: This release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, Section
21E of the Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
generally can be identified by use of phrases or terminology such as
"intend" or other similar words or the negative of such terminology.
Similarly, descriptions of Mannatech’s objectives, strategies, plans, goals
or targets contained herein are also considered forward-looking statements.
Mannatech believes this release should be read in conjunction with all of
its filings with the United States Securities and Exchange Commission and
cautions its readers that these forward-looking statements are subject to
certain events, risks, uncertainties, and other factors. Some of these
factors include, among others, Mannatech’s inability to attract and retain
associates and members, increases in competition, litigation, regulatory
changes, and its planned growth into new international markets. Although
Mannatech believes that the expectations, statements, and assumptions
reflected in these forward-looking statements are reasonable, it cautions
readers to always consider all of the risk factors and any other cautionary
statements carefully in evaluating each forward-looking statement in this
release, as well as those set forth in its latest Annual Report on Form
10-K and Quarterly Report on Form 10-Q, and other filings filed with the
United States Securities and Exchange Commission, including its current
reports on Form 8-K. All of the forward-looking statements contained herein
speak only as of the date of this release.
