Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in USANA Health Sciences (NASDAQ: USNA) in connection to alleged violations of securities laws by USNA and certain of its officers. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in USANA Health Sciences between March 14, 2014 and February 7, 2017.
The class action complaint specifically alleges that during the period in question, USNA and certain of its officers might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that the company’s subsidiary, BabyCare, employed improper reimbursement activities in China; that such activities amounted to violations of the Foreign Corrupt Practices Act; that when such activities came to light, they were likely to lead to substantial regulatory attention; and that thus USANA’s statements during the relevant times were misleading and/or false.
The company announced after market hours on February 7, 2017 that it had launched an internal investigation of its China operations: “The Company is voluntarily conducting an internal investigation of its China operations, BabyCare Ltd. The investigation focuses on compliance with the Foreign Corrupt Practices Act (“FCPA”) and certain conduct and policies at BabyCare, including BabyCare’s expense reimbursement policies. The Audit Committee of the Board of Directors has assumed direct responsibility for reviewing these matters and has hired experienced counsel to conduct the investigation. While we do not believe that the subject amounts are quantitatively material or will materially affect our financial statements, we cannot currently predict the outcome of the investigation on our business, results of operations or financial condition.” After this news was announced, USANA’s share price fell 11.57%, or $7.25, closing at $55.40 on February 8, 2017.