Mannatech Settles Texas AG Fraud Probe For $6M

Law360 (February 27, 2009, 12:00 AM EST) -- After shelling out $11 million dollars to investors last year, nutritional supplements maker Mannatech Inc. has agreed to hand over another $6 million to the Texas attorney general to settle allegations that the business exaggerated the health benefits of its vitamins and supplements.

On Thursday, Mannatech revealed the settlement with Texas Attorney General Greg Abbott, which also included a $1 million civil penalty to be paid by the founder, former chairman and shareholder of the company Samuel Caster.

“Texans will not tolerate illegal marketing schemes that prey upon the sick and unsuspecting,” Abbott said. “These deceptive practices posed a health risk...

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