When I originally wrote
about Mannatech (NASDAQ:MTEX
) in October, in a column that caused the Hostile React-O-Meter to spin out of control, the story was that the Texas Attorney General was probing the fast-growing manufacturer of nutritional supplements, whose stock had been one of the year's sizzlers. Now hear this: Late Thursday the AG charged the company, its CEO, Sam Caster and several related entities with "operating an illegal marketing scheme...to exploit families, including those challenged by cancer, Down's syndrome, cystic fibrosis and other serious illnesses."
President Terry Persinger said Mannatech is "aware of the situation and will be taking appropriate action to address any issues or concerns" raised by the AG. "We take matters of this nature very seriously and intend to cooperate to reach a resolution," he said.
The charges revolve around Mannatech's lead product, Ambrotose, a type of sugar pill sold through a network of more than 500,000 people.
MTEX 1-yr chart