Mannatech Reaches Settlement in Securities Class-Action Lawsuit
Settlement Subject to Final Court Approval; Mannatech Admits No Wrongdoing
COPPELL, Texas–(BUSINESS WIRE)–March 20, 2008
Mannatech, Incorporated (NASDAQ: MTEX) today announced that the Company and counsel for the lead plaintiff have reached a settlement in the securities class action lawsuit styled Jonathan Crowell v. Mannatech, Inc., et al., Civil Action No. 3:07-CV-00238-K, in the United States District Court for the Northern District of Texas (“the litigation”). The litigation is the consolidation of three securities class action complaints filed against Mannatech, Incorporated, and certain of its officers and directors in August and September 2005. The settlement class consists of the purchasers of Mannatech stock during the period August 10, 2004 through July 30, 2007.
This settlement, which is subject to among other things preliminary and final Court approval, would resolve all the claims in the litigation. Without admitting any liability or wrongdoing of any kind, the Company has agreed to authorize payment to the plaintiff class of $11.25 million. This settlement payment would be funded by both the Company’s insurer and the Company itself.
Because the litigation is a class action, the settlement is subject to the preliminary approval of the Court as well as the Court’s final approval after notice of the terms of the settlement has been provided to all class members. Timing of the approval process is dependent on the Court’s calendar. Relevant purchasers of Mannatech stock have a right to opt out of the class, class members may object to the terms of the settlement, and final consummation of settlement must await the entry of final judgment approving the settlement as fair to all class members. However, such settlements are not uncommonly approved without material modification, and barring any unusual developments, the Company expects that this approval process will be completed within a 4-6 month period.
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.
Source: Mannatech, Incorporated