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Mannatech settlement documents posted.

Casewatch has posted documents from last year's settlement of charges brought by

the Attorney General of Texas against Mannatech, Inc. and its founder and former

chief executive officer, Caster.

[barrett S. Mannatech and founder agree to pay $7 million to settle Texas

Attorney General charges. MLM Watch, Dec 3, 2010] The complaint, filed in 2007,

charged Mannatech and Caster with orchestrating an unlawful marketing scheme

that exaggerated their products' health benefits. The complaint alleged:

**Marketing materials falsely claimed that Mannatech's dietary supplements could

cure and treat Down Syndrome, cystic fibrosis, cancer, and other serious

illnesses.

**Mannatech encouraged their salespersons' false statements by allowing sellers

to continue utilizing various sales tools, brochures, videotapes, and

personalized Web sites that exaggerate the supplements' effectiveness.

**Mannatech encourage product user " testimonials " that tout their supplements'

alleged healing effects. The testimonials, along with misleading " before and

after " photos, were displayed prominently in seminar booths, brochures, videos,

sales associates' personal Web sites, and training materials.

**Together, these marketing techniques misled consumers into believing that the

supplements dramatically cure or treat serious illnesses.

Under the settlement, signed in February 2009, the defendants agreed:

**Mannatech would pay $6 million to the State of Texas. Of this, $2 million was

designated as attorneys fees and investigative costs and the remainder would be

placed in a fund from which Texas customers can obtain restitution.

**Mannatech would implement a comprehensive monitoring and compliance program

that will monitor sales associates' statements about Mannatech's products and

would not advertise or otherwise claim that its dietary supplements can cure,

treat, mitigate, or prevent disease.

**Caster would pay a $1 million civil penalty and cannot serve as an officer,

director, or employee of Mannatech for the next five years.

The documents are linked from

http://www.mlmwatch.org/04C/Mannatech/texas_settlement.html

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