Robbins LLP: USANA Health Sciences, Inc. (USNA) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against USANA Health Sciences, Inc. (“USANA”) (NYSE: USNA) in the U.S. District Court for the District of Utah. The complaint is brought on behalf of all purchasers of USANA securities between March 14, 2014 and February 7, 2017, for alleged violations of the Securities Exchange Act of 1934 by USANA’s officers and directors. USANA develops, manufactures, and sells science-based nutritional and personal care products primarily to reduce the risk of chronic degenerative disease.
USANA Accused of Engaging in Improper Reimbursement Practices
According to the complaint, on August 16, 2010, USANA announced that it acquired BabyCare Ltd. (“BabyCare”), a China-based manufacturing company that sells nutritional products for infants. USANA subsequently expanded BabyCare’s market presence in various provinces in China. USANA submitted several filings with the U.S. Securities and Exchange Commission that emphasized the company’s strong sales and customer growth, specifically stating that it believed that Greater China was the company’s most significant and imminent growth opportunity. USANA continued to report strong momentum and higher-than-expected sales in China and noted that China was “leading the way” in this respect. However, the complaint alleges that USANA officials failed to disclose that BabyCare had engaged in improper reimbursement practices in China and that these practices constituted violations of the Foreign Corrupt Practices Act (“FCPA”). As such, the company’s China revenues were allegedly in part the product of unlawful conduct and unlikely to be sustainable.
On February 7, 2017, USANA announced its financial and operating results for the year 2016, stating that the company was voluntarily conducting an internal investigation of its China operations with respect to BabyCare. USANA further detailed that the investigation would focus on compliance with the FCPA and certain conduct and policies at BabyCare, including BabyCare’s expense reimbursement policies. The company also disclosed that it could not predict the outcome of the investigation on its business, results of operations, or financial condition. On this news, USANA’s stock fell $7.25 per share, or 11.57%, to close at $55.40 per share on February 8, 2017.
USANA Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.