Federal Securities Class Action Lawsuit Against USANA Health Sciences Dismissed, With Prejudice
On October 17, 2018, the U.S. Court of the District of Utah, issued a ruling that dismissed, with prejudice, a federal securities class action lawsuit filed against USANA Health Sciences and individual defendants. The ruling represents a complete victory for the defendants. Wilson Sonsini Goodrich & Rosati represented USANA in the matter.
In the lawsuit, which was originally filed on February 13, 2017, the plaintiff alleged that the defendants violated the Foreign Corrupt Practices Act as well as Chinese law prohibiting multi-level marketing, resulting in alleged misstatements regarding the company's growth in China as well in its financial statements. Plaintiff claimed that the non-disclosure of these alleged violations, as well as the resulting alleged misstatements, rendered the defendants' public statements materially misleading.
Judge Dee Benson of the U.S. District of Utah dismissed the case, holding that the plaintiff failed to allege any well-pled facts showing that defendants issued any false statements or that defendants had any knowledge of issuing such false statements.
The WSGR team that represented USANA Health Sciences in the litigation was led by partners Steven Schatz, Gideon Schor, and Catherine Moreno with assistance from associates Michael Petrocelli, Benjamin Tolman, and Alexander Brehnan.
For more information, please refer to the court's opinion.