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{{Short description|Multinational multi-level marketing company}}
'''Mannatech, Incorporated''', is a multinational firm engaged in multi-level marketing, research, and distribution of ]s. Its stock is traded on the ] exchange and as of 2006 has a market capitalization of about US $500 million, classifying it as a ] corporation.
{{Use mdy dates|date=July 2016}}
{{Infobox company
| name = Mannatech Inc.
| logo = Updated Logo of Mannatech Incorporated as of 2017.jpg
| image = Mannatech HQ.jpg
| image_caption = Mannatech headquarters in Flower Mound, Texas
| type = ]
| traded_as = {{NASDAQ|MTEX}}
| founded = {{Start date|1993|11|4}} in ], ], U.S.
| founder = ]
| hq_location_city = ]
| location_country = U.S.
| key_people = {{Unbulleted list|Landen Fredrick (] and ])|J. Stanley Fredrick (])}}
| products =
| industry = {{Unbulleted list|]|]|]}}
| revenue = {{decrease}} ] 176.696 million <small>(2017)</small><ref name="U10-K2017">{{cite web | title=Mannatech / United States Securities and Exchange Commission Form 10-K | publisher=United States Securities and Exchange Commission | url=https://www.sec.gov/Archives/edgar/data/1056358/000105635818000026/mtex1231201710-k.htm | access-date=May 22, 2016}}</ref>
| operating_income = {{increase}} ] 2.519 thousand <small>(2017)</small><ref name="U10-K2017"/>
| net_income = {{decrease}} ] -1.787 million <small>(2017)</small><ref name="U10-K2017"/>
| assets = {{increase}} ] 76.242 million <small>(2017)</small><ref name="U10-K2017"/>
| equity = {{increase}} ] 40.241 million <small>(2017)</small><ref name="U10-K2017"/>
| num_employees = 252 <small>(Dec 2017)</small><ref name="U10-K2017"/>
| homepage = {{URL|mannatech.com}}
}}
'''Mannatech Inc.''' is a publicly traded, multinational ] firm that sells ]s and personal care products. It was founded in November 1993 by ], and is headquartered in ]. The company's stock is traded on the ] exchange under the symbol MTEX. As of 2017, Mannatech employed 252 people and sold its products through some 220,000 independent ].<ref name="U10-K2017"/>


In 2007, Mannatech and its salespeople made false ] about its lead product called "Ambrotose" which contains ] derived from plants.<ref name=MSKCC/><ref name=torok/><ref name=kaiser/> The company was profitable soon after its founding until about 2008, when it started losing money due to exposure of its business practices through a class action lawsuit based on the false health claims, a critical '']'' news special, and a civil suit filed by the ].<ref>{{Cite web|url=https://www.dallasnews.com/news/watchdog/2013/11/23/watchdog-mannatech-founder-banned-from-company-still-works-from-inside|title=Watchdog: Mannatech founder, banned from company, still works from inside|date=2013-11-23|website=Dallas News|language=en|access-date=2018-12-06}}</ref>
Mannatech was founded in 1993 and maintains a corporate headquarters in Coppell, Texas. It operates in the United States, Canada, Australia, the United Kingdom, Japan, New Zealand, Republic of
Korea, Taiwan, Denmark and Germany.


==History==
Mannatech develops nutritional supplements, topical products, and weight-management products. The company formulates its products using naturally-occurring, plant-derived, carbohydrate-based ingredients that are based on phytochemistry & Glycobiology.
Mannatech was founded by ] in 1993, as Congress prepared to pass the ] of 1994, which made feasible the profitable marketing of a wider spectrum of dietary supplements.<ref name="Geraghty20150112">{{cite news|last1=Geraghty|first1=Jim|author-link1=Jim Geraghty|title=Ben Carson's Troubling Connection|url=http://www.nationalreview.com/article/396193/ben-carsons-troubling-connection-jim-geraghty|access-date=October 30, 2015|work=National Review|date=January 12, 2015}}</ref> The company has had a Christian orientation since its founding; the name was intended to evoke ], and it recruited people to sell its products through its ] structure in church congregations.<ref name="nytimesRC"/> Prior to founding Mannatech, Caster had founded and run Eagle Shield, an insulation manufacturer, and Electracat, a pest control device; both were categorized as a hoax by the ]'s office.<ref name="titleMannatech founder banned">{{cite news|url=http://www.dallasnews.com/investigations/watchdog/20131123-watchdog-mannatech-founder-banned-from-company-still-works-from-inside.ece|title=Mannatech founder, banned from company, still works from inside|last=Lieber|first=Dave|date=November 23, 2013|work=Dallas Morning News|access-date=March 3, 2014}}</ref><ref>{{Cite news|url=https://www.barrons.com/articles/SB111542290501327322|title=Manna From Texas|last=Brammer|first=Rhonda|date=May 9, 2005|work=Barron's|access-date=2018-05-26|publisher=Dow Jones & Company|language=en-US|url-access=subscription }}</ref>


Mannatech was founded to sell ] and ]. Before developing its own products, the company sold Manapol, an aloe vera extract made by another company.<ref>{{Cite news|url=https://www.dmagazine.com/frontburner/2006/10/re-mannatech/|title=Re: Mannatech|last=McGill|first=Adam|date=2006-10-18|work=D Magazine|access-date=2018-10-20|language=en-US}}</ref> Its most widely known product has been Ambrotose, a dietary supplement made from ] derived from plants.<ref name="10K05">{{cite web | author=Mannatech, Incorporated | title=Form Mannatech, Incorporated: 10K SEC Public Filing for FY 2005 | publisher=United States Securities and Exchange Commission | date=March 16, 2006 | url=https://www.sec.gov/Archives/edgar/data/1056358/000119312506056564/d10k.htm | access-date=May 23, 2010}}</ref>
Mannatech's primary products include Plus, Classic Plus, Advanced Plus, Glycentials Vitamin and Mineral Supplement, Life Enhancement Pack, Ambrotose AO, and Ambrotose that offer various nutritional supplements for general overall optimal health; Ambrotose complex, CardioBalance, Immunostart, Ambrotose Bulk, Mannacleanse, PhytAloe, PhytAloe Bulk, GI-Pro, GI-Zyme, and Ambrotose with Lecithin, which concentrate on specialized nutrients for wellness management of the body; Manna-C, AmbroStart, Mannatonin, and Wellness Water Bottle to support physiological functions; and Sport and Empact that provide nutrition to support optimal physical performance and maintain muscle mass. In addition, the company offers Accelerator 2, Catalyst with Ambroglycin, Fiber Full, and GlycoSlim Meal Replacement Drinks in Vanilla and Chocolate, which concentrate on body nutrition and weight management system; Glyco-Bears and MannaBears that enable nutrition to children for health and wellness; and AmbroDerm, Emprizone, and Firm that deliver antioxidants for skin care, such as natural texture, softness, and elasticity. As of December 31, 2005, the company offered 25 nutritional products, 3 topical products, and a weight-management system consisting of 4 different products. It operates in the United States, Canada, Australia, the United Kingdom, Japan, New Zealand, the Republic of Korea, Taiwan, Denmark and Germany. The company sells its products through its network-marketing system of independent associates and members. Mannatech was founded in 1993 and is headquartered in Coppell, Texas.


From 1993 to 2009, ], father of presidential candidate ], was a top salesman for Mannatech.<ref name="nytimesRC">{{cite web|last=Twohey|first=Megan|title=Ted Cruz's Father Worked With Supplements Maker Sued by Investors|work=]|date=April 29, 2016|url=https://www.nytimes.com/2016/04/30/us/politics/rafael-cruz-mannatech.html|access-date =April 30, 2016}}</ref><ref name="salonRC">{{cite web|last1=Dubose|first1=Lou|last2=Harper|first2=Hannah|title=Ted Cruz's dad has a very sketchy resume: Rafael Cruz's credentials are exaggerated, at best |work=]|date=October 19, 2015|url=https://www.salon.com/2015/10/19/ted_cruzs_dad_has_a_very_sketchy_resume_rafael_cruzs_credentials_are_exaggerated_at_best/|access-date =April 30, 2016}}</ref>
Mannatech is a member of the USA, UK and the Canadian Direct Selling Associations (DSA). Every member pledges to abide by the DSA code’s standards and procedures as a condition of admission and membership. The code ensures that member companies will make no statements or promises that might mislead either consumers or prospective sales people.


Mannatech had its initial public offering (IPO) on February 16, 1999, at $8 a share. The stock price settled a few weeks later at a price of $15.13 a share and a market capitalization of $366 million. The IPO raised $12 million in funds to be used for expansion into Australia and the U.K.<ref>{{Cite news|url=https://www.wsj.com/articles/SB919740829313789000|title=Mannatech, a Hot IPO Last Week, Now Leaves Some Analysts Cold|last=Weil|first=Jonathan|date=February 24, 1999|work=The Wall Street Journal|access-date=2018-10-20|language=en-US}}</ref>
⚫ ==External links==


===False claims and lawsuits===
*

*. Accessed October 18th, 2006.
The company came to be known for unproven claims that its products could be used to treat many diseases and conditions, including ], ], ] and ].<ref name="titleNobel Prize winners say sites falsely cite research">{{cite news | title=Nobel Prize winners say sites falsely cite research | author=Danny Robbins|work=Fort Worth Star-Telegram | date=September 10, 2006 |url = http://www.dfw.com/mld/dfw/news/nation/15486298.htm|archive-url = https://web.archive.org/web/20061206191858/http://www.dfw.com/mld/dfw/news/nation/15486298.htm|archive-date=2006-12-06}}</ref><ref name="titleHealth Claims by Sales Force Boost Supplement Firm">{{cite news | last=Sataline | first=Suzanne | title=Health Claims by Sales Force Boost Supplement Firm; Mannatech's Products Attract the Gravely Ill; Disclaimers on Labels | work=The Wall Street Journal | url=https://online.wsj.com/news/articles/SB117884606430799400 | date=May 11, 2007 | access-date=July 8, 2007 }}{{subscription required}}</ref> There is no evidence that any of these claims were or are true.<ref name="MSKCC">{{cite web | publisher=] | title=Glyconutrients | date=November 23, 2015 | access-date=August 22, 2017 | url=http://www.mskcc.org/cancer-care/herb/glyconutrients}}</ref><ref name="torok">{{cite journal | journal=Glycobiology | title=Wielding the sword of professional ethics against misleading dietary supplement claims |vauthors=Torok CB, Murray TH | year=2008 | volume=18 | issue=9 | pages=660–663 | doi=10.1093/glycob/cwn060| doi-access=free }}</ref><ref name="kaiser">{{cite journal | journal=Science | title=Who Owns Glycobiology? | author=Jocelyn Kaiser | year=2007 | volume=318 | issue=5851 | pages=734–737 | doi=10.1126/science.318.5851.734 | pmid=17975043| s2cid=153952585 }}</ref><ref name="titleCure for Your Disease or Empty Promise?">{{cite news|url=https://abcnews.go.com/2020/story?id=3228488|title=Cure for Your Disease or Empty Promise?|last1=Avila|first1=Jim|date=June 1, 2007|work=Yahoo!-ABC News Network|access-date=July 8, 2007|publisher=ABC News Internet Ventures|last2=Martz|first2=Geoff|last3=Paparella|first3=Andrew}}</ref><ref name="Schnaar">{{cite journal |vauthors=Schnaar RL, Freeze HH | title=A 'Glyconutrient Sham' | journal=Glycobiology | year=2008 | volume=18 | issue=9 | pages=652–657 | doi=10.1093/glycob/cwm098 | pmid=17855741 | doi-access=free }} {{open access}}</ref><ref name="SchnaarFreeze2017">{{cite journal|last1=Schnaar|first1=Ronald L|last2=Freeze|first2=Hudson H|title=A "Glyconutrient Sham" and the Jenner Glycobiology and Medicine Symposium|journal=Glycobiology|volume=27|issue=5|year=2017|pages=383–384|issn=0959-6658|doi=10.1093/glycob/cwx024|pmid=28384366|doi-access=free}}</ref><ref name="TIA_120717">{{cite web |title=Bounceback by Mannatech |url=https://www.truthinadvertising.org/bounceback-by-mannatech/ |publisher=Truth in Advertising |access-date=June 22, 2018 |date=December 7, 2017}}</ref><ref name="Schultz_112817">{{cite news |last1=Schultz |first1=Hank |title=Mannatech sales slide; warning letter questions meaning of 'glyconutrients' |url=https://www.nutraingredients-usa.com/Info/About-us |access-date=June 22, 2018 |publisher=NutraIngredients |date=November 28, 2017}}</ref>

In May 2005 an article was published in '']'' questioning the company's business practices.<ref name=law360-2008/><ref name="Barrons">{{cite news|url=https://www.barrons.com/articles/SB111542290501327322|title=Manna From Texas|last=Brammer|first=Rhonda|date=May 9, 2005|work=Barron's|access-date=June 22, 2018}}</ref> In September 2005, a class-action lawsuit was filed against Mannatech for alleged violations of the ]; it was prompted by the Barron's article.<ref name=law360-2008/><ref>{{cite web |title=Case Page: Mannatech, Inc. Securities Litigation |url=http://securities.stanford.edu/filings-case.html?id=103504 |publisher=Securities Class Action Clearinghouse |access-date=22 June 2018 |language=en}}</ref>

In 2006, Mannatech distributor Vivienne Balonwu, a U.K. general practitioner, was found by the U.K. ] panel to have "abused her power as a doctor" after it was determined that she had illegally promoted and sold the company's products to people as a treatment for medical conditions such as ] and ]-related complications. Following patient complaints about her marketing of the products in 2006, Balonwu was dismissed by her employer, Harmoni, a medical services company, and the GMC panel imposed a 15-month penalty period during which she was "to avoid private or short term ] work" and "to complete a supervised personal development plan to tackle shortcomings in her practice".<ref name="BMJ">{{cite journal|last1=Dyer|first1=Owen|title=GP advised patients to take pills made by company she worked for|journal=]|date=March 29, 2008|volume=336|issue=7646|page=689|doi=10.1136/bmj.39532.350729.DB|pmc=2276256|pmid=18369218}}</ref>

Also in 2006, Mannatech was named #5 on '']''’ list of America's 200 Best Small Companies.<ref>{{Cite news|url=https://www.forbes.com/2006/10/12/best-small-companies-biz-cz_06200best_jg_1012bestintro.html|title=America's 200 Best Small Companies|last=Gage|first=Jack|date=2006-10-13|work=Forbes|access-date=2018-10-20|language=en}}</ref><ref>{{Cite web|url=https://www.forbes.com/lists/2006/23/biz_06200best_Mannatech_9Q1M.html|title=The 200 Best Small Companies: #5 Mannatech|date=2006-10-12|website=Forbes|access-date=2018-10-20}}</ref> At the same time, the company came under investigation by the Texas Attorney General in October 2006 for alleged violations of that state's Deceptive Trade Practices Act.<ref name="titleTexas Attorney General probing Mannatech">{{cite news | last=Greenberg | first=Herb | title=Texas Attorney General probing Mannatech | publisher=MarketWatch, Inc. | date=October 27, 2006 | url=http://www.marketwatch.com/story/texas-attorney-general-probing-mannatech | access-date=July 8, 2007}}</ref> In July 2006, Texas Attorney General ] formally charged Mannatech, MannaRelief, Sam Caster, and Reginald McDaniel, the company's medical director, with operating an illegal marketing scheme in violation of state law.<ref name="AG060507">{{cite web|title=State of Texas v. Mannatech et al|url=https://www.texasattorneygeneral.gov/newspubs/releases/2007/070507mannatech.pdf|access-date=January 29, 2015|date=July 5, 2007}}</ref><ref name="titleTexas Attorney General Charges Mannatech with Unlawful, Misleading Sales Practices">{{cite web | title=Texas Attorney General Charges Mannatech with Unlawful, Misleading Sales Practices | publisher=Texas Attorney General Greg Abbott | date=July 5, 2007 | url=https://www.texasattorneygeneral.gov/oagnews/release.php?id=2086 | access-date=July 8, 2007}}</ref>

A ''20/20'' undercover investigation that aired June 1, 2007 on ] showed Mannatech's sales associates teaching sales recruits how to target Mannatech products to people with specific illnesses in a manner that purportedly does not violate ], including U.S. ] regulations, by avoiding direct claims that the products cure any particular diseases.<ref name="titleCure for Your Disease or Empty Promise?"/>

In August 2007, Caster resigned as CEO of Mannatech.<ref name="titleCaster Resigns as CEO of Mannatech"/> In October 2007, it was reported that the company had fired ] as its auditor after the accounting firm demanded that Mannatech remove Caster from all responsibilities<ref name="titleCaster Resigns as CEO of Mannatech">{{cite news | author=Sataline S | title=Caster Resigns as CEO of Mannatech | work=The Wall Street Journal | url=https://online.wsj.com/news/articles/SB118775074805504989 | access-date=April 6, 2008 | date=August 22, 2007}}</ref><ref>{{cite news | author=Sataline S | title=Mannatech Fires Its Auditor Amid Dispute Over Founder | work=The Wall Street Journal | url=https://online.wsj.com/news/articles/SB119275727764064354 | access-date=April 6, 2008 | date=October 19, 2007}}{{subscription required}}</ref> to be replaced by Wayne Badovinus as the new chief executive. Several corporate initiatives were undertaken, but after 17 months on the job Badovinus resigned in December 2009.<ref name="titleMannatechCEOquits">{{cite web|url=http://www.dallasnews.com/business/headlines/20091203-Mannatech-CEO-quits-after-17-months-8793.ece|title=Mannatech CEO quits after 17 months on the job|last=Roberson|first=Jason|date=December 4, 2009|website=Dallas Morning News|access-date=December 27, 2009}}</ref> Another member of the board resigned shortly after.<ref>{{cite web|url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5xYbUsQhtik|title=Mannatech Announces Board Resignation (press release)|date=December 24, 2009|website=Bloomberg|archive-url=https://web.archive.org/web/20140502005106/https://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5xYbUsQhtik|archive-date=May 2, 2014|url-status=dead|access-date=December 27, 2009}}</ref> Mannatech's Chief Science Officer Robert Sinnott and Mannatech's chief financial officer Steve Fenstermacher were named Co-CEOs.<ref name="titleMannatech (MTEX) CEO Badovinus Resigns">{{cite news|url=http://www.streetinsider.com/Management+Changes/Mannatech+(MTEX)+CEO+Badovinus+Resigns/5158529.html|title=Mannatech (MTEX) CEO Badovinus Resigns|last=Blitzer|first=David M.|date=December 3, 2009|work=StreetInsider.com|access-date=November 28, 2010}}</ref> Fenstermacher later resigned.<ref name="title Co-CEO Stephen Fenstermacher Resigns">{{cite news|url=https://finance.yahoo.com/news/mannatech-announces-resignation-co-ceo-214724914.html|title=Mannatech announces the resignation of co-CEO, CFO Stephen Fenstermacher|date=December 16, 2011|work=Theflyonthewall.com|access-date=May 21, 2012|publisher=Yahoo Finance}}</ref>

Publicity over the company's lawsuits began to damage the balance sheets and stock performance.<ref name="titleMannatechCEOquits"/> After profits of $32 million in 2006 and $6.6 million in 2007, Mannatech reported a $12.6 million loss in 2008 and a $17.3 million loss in 2009.<ref name="titleMannatech sales decline">{{cite web|url=http://www.bizjournals.com/dallas/stories/2010/08/02/daily23.html|title=Mannatech's profit narrows net loss, sales decline|last=Panchuk|first=Kerri|date=August 4, 2010|website=Dallas Business Journal|access-date=August 12, 2010}}</ref>

Mannatech settled the civil complaint with the State of Texas in February 2009; Mannatech did not admit wrongdoing but agreed to pay $4 million in restitution to clients who purchased products and $2 million to the state to cover its costs in the case. In addition, Sam Caster agreed to pay a $1 million civil penalty and steer clear of any type of leadership position or employment relationship with Mannatech for five years.<ref name="titleMannatech, former CEO settle with state">{{cite news|url=http://www.dallasnews.com/sharedcontent/dws/bus/stories/022709dnbusmannatech.77ae57d.html|title=Mannatech, former CEO settle with state|last=Roberson|first=Jason|date=February 26, 2009|work=Dallas Morning News|access-date=February 26, 2009|archive-url=https://web.archive.org/web/20090228124106/http://www.dallasnews.com/sharedcontent/dws/bus/stories/022709dnbusmannatech.77ae57d.html|archive-date=February 28, 2009}}</ref><ref name="titleMannatech Settles with Attorney General">{{cite news | title=Mannatech Settles with Attorney General | work=Dallas Business Journal | url=http://www.bizjournals.com/dallas/stories/2009/02/23/daily52.html | date=February 26, 2009 | access-date=February 26, 2009}}</ref><ref>{{cite web | title=Texas Attorney General Abbott Reaches Agreement To Halt Deceptive Trade Practices | work=Attorney General of Texas Greg Abbott | date=February 26, 2009 | url=https://www.texasattorneygeneral.gov/oagnews/release.php?id=2858 | access-date=August 31, 2013}}</ref>

In March 2008, Mannatech settled the class-action lawsuit by agreeing to pay $11.25 million to the plaintiff class. As part of the settlement, Mannatech admitted no wrongdoing.<ref name="law360-2008">{{cite news|url=https://www.law360.com/articles/50818/mannatech-settles-investors-suit-for-11m|title=Mannatech Settles Investors' Suit For $11M|last=Caulfield|first=Christine|date=March 21, 2008|work=Law360|access-date=June 22, 2018|language=en}}</ref>

2010 losses were $10.6 million.<ref name="secdatabase.com">{{cite web|url=https://www.sec.gov/Archives/edgar/data/1056358/000105635811000007/form10-k_12312010.htm|title=Mannatech Inc 2010 Annual Report - Form 10-K|date=March 10, 2011|website=]|publisher=U.S. Securities and Exchange Commission|page=34|access-date=May 15, 2012}}</ref> As the company's market capitalizations continued to fall, S&P Indices dropped it from the S&P 600 Index, stating "They are no longer representative of the small cap market space."<ref name="titleStandard & Poor’s Announces Changes to U.S. Index">{{cite news|url=http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline;+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application/pdf&blobkey=id&blobheadername1=content-type&blobwhere=1245240193696|title=Standard & Poor's Announces Changes to U.S. Index (press release)|last=Blitzer|first=David M.|date=November 26, 2010|work=The McGraw Hill Companies|access-date=November 26, 2010|archive-url=https://web.archive.org/web/20150402122312/http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline%3B+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1245240193696|archive-date=April 2, 2015|format=PDF|url-status=live}}</ref> Recruiting efforts continued dropping in 2011, widening company losses to $20.6 million.<ref>{{cite news
| author=Press Release | url=http://www.thestreet.com/story/11474483/1/mannatech-reports-fourth-quarter-and-year-end-results.html
| title=Mannatech Reports Fourth Quarter And Year End Results | access-date=April 1, 2012 | work=Business Wire | date=March 28, 2012}}</ref> For 2012, the company's net loss narrowed to around $1 million from the about $21 million loss the year before.<ref>{{cite web|title=Mannatech Form 10k For the fiscal year ended December 31, 2012|url=https://www.sec.gov/Archives/edgar/data/1056358/000114036113014220/form10k.htm|publisher=SEC Edgar|page=37}}</ref> In 2013, it had around $3 million in net income, and in 2014, it reported profits of $6.5 million and total revenue of $190.1 million.<ref name=":1">{{Cite news|url=https://www.wsj.com/articles/ben-carson-has-had-ties-to-dietary-supplement-firm-that-faced-legal-challenge-1444057743|title=Ben Carson Has Had Ties to Dietary Supplement Firm That Faced Legal Challenge|last=Maremont|first=Mark|date=2015-10-05|work=Wall Street Journal|access-date=2018-10-20|language=en-US|issn=0099-9660}}</ref>

In November 2017, Mannatech received an ] for illegally marketing several of its supplement products as medicinal agents and for selling adulterated and misbranded products in violation of ] and ] regulations for dietary supplements.<ref name="FDA2017">{{cite web|url=https://www.fda.gov/ICECI/EnforcementActions/WarningLetters/2017/ucm585515.htm|title=FDA Warning Letter to Mannatech, Inc.|last=Garcia|first=Edmundo Jr.|date=November 14, 2017|website=U.S. Food and Drug Administration|access-date=June 22, 2018}}</ref> In December 2017, Mannatech reached an agreement with the Town Council of ], ], to relocate its headquarters to an existing facility in the city.<ref name=":0">{{Cite web|url=http://www.crosstimbersgazette.com/2017/12/05/flower-mound-approves-agreement-with-mannatech-for-new-hq/|title=Flower Mound approves agreement with Mannatech for new HQ|last=Pry|first=Lyn Rejahl|date=December 5, 2017|website=The Cross Timbers Gazette|language=en-US|access-date=2018-10-20}}</ref>

===Ben Carson===

Starting in 2004, neurosurgeon and ] politician ] made videos and spoke at company events promoting Mannatech and its products. In 2004, in a speech at a Mannatech event, he credited the company's products with the disappearance of his cancer symptoms.<ref name=":1" /><ref name="GrabowMannatech"/><ref name="National Review">{{cite news|last1=Jim|first1=Geraghty|title=Carson to Newsmax: 'I Didn't Know Anything About all Legal Stuff.'|url=http://www.nationalreview.com/campaign-spot/396562/carson-newsmax-i-didnt-know-anything-about-all-mannatechs-legal-stuff-jim|access-date=January 24, 2015|work=National Review|date=January 16, 2015}}</ref>

Carson's image still appeared on the Mannatech's website in 2014,<ref name="GrabowMannatech">{{Cite news|url=https://www.cnn.com/2015/10/29/politics/ben-carson-mannatech/index.html|title=Ben Carson had extensive relationship to Mannatech|last=Grabow|first=Chip|date=October 30, 2015|work=CNN|access-date=2018-06-23}}</ref> and in the same year he praised their "glyconutrient" supplements in a ] special (''The Missing Link – The Science of Brain Health''), sponsored by a group of Mannatech distributors, that was subsequently featured on the site.<ref name="Geraghty2015">{{cite news|last1=Geraghty|first1=Jim|title=Ben Carson's Troubling Connection|url=http://www.nationalreview.com/article/396193/ben-carsons-troubling-connection-jim-geraghty|access-date=November 2, 2015|work=National Review|date=January 12, 2015}}</ref> During the ] GOP debate on October 28, 2015, Carson was asked about his relationship with Mannatech and denied any involvement with the company.<ref name="Ford">{{cite web|last=Ford|first=Matt|title=Ben Carson's Mannatech Problem|work=]|date=October 29, 2015|url=https://www.theatlantic.com/politics/archive/2015/10/ben-carson-mannatech/412987|access-date =October 31, 2015}}</ref> ] rated Carson's denial of any involvement as "false".<ref name="PF102915">{{cite news|author1=Lauren Carroll|title=At debate, Ben Carson says he has no connection to Mannatech|url=http://www.politifact.com/truth-o-meter/statements/2015/oct/29/ben-carson/debate-ben-carson-says-he-has-no-connection-mannat/|access-date=October 30, 2015|work=Politifact|date=October 29, 2015|quote=As far as we can tell, Carson was not a paid employee or official endorser of the product. However, his claim suggests he has no ties to Mannatech whatsoever. In reality, he got paid to deliver speeches to Mannatech and appeared in promotional videos, and he consistently delivered glowing reviews of the nutritional supplements.}}</ref> In November 2015, Mannatech said on its website that, for compliance with ], the company had removed all references to Carson before he announced his bid for the presidency.<ref name="Mannatech">{{cite web|title=Mannatech's Response to Question at GOP Presidential Debate
|work=Mannatech website|date=November 3, 2015|url=http://allaboutmannatech.com/mannatechs-response-to-question-at-gop-presidential-debate/|access-date =November 9, 2015}}</ref>

==See also==
*]

==References==
{{Notelist}}

{{Reflist|30em}}

⚫ ==External links==
*{{Official website|https://www.mannatech.com/}}
* ''CNN Money''


{{Multi-level marketing}}
{{Authority control}}


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{{food-product-stub}}
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Latest revision as of 02:46, 10 November 2024

Multinational multi-level marketing company

Mannatech Inc.
Mannatech headquarters in Flower Mound, Texas
Company typePublic
Traded asNasdaq: MTEX
Industry
FoundedNovember 4, 1993 (1993-11-04) in Coppell, Texas, U.S.
FounderSamuel Caster
HeadquartersFlower Mound, Texas, U.S.
Key people
RevenueDecrease US$ 176.696 million (2017)
Operating incomeIncrease US$ 2.519 thousand (2017)
Net incomeDecrease US$ -1.787 million (2017)
Total assetsIncrease US$ 76.242 million (2017)
Total equityIncrease US$ 40.241 million (2017)
Number of employees252 (Dec 2017)
Websitemannatech.com

Mannatech Inc. is a publicly traded, multinational multi-level marketing firm that sells dietary supplements and personal care products. It was founded in November 1993 by Samuel Caster, and is headquartered in Flower Mound, Texas. The company's stock is traded on the NASDAQ exchange under the symbol MTEX. As of 2017, Mannatech employed 252 people and sold its products through some 220,000 independent sales associates.

In 2007, Mannatech and its salespeople made false claims of anti-disease benefits about its lead product called "Ambrotose" which contains sugars derived from plants. The company was profitable soon after its founding until about 2008, when it started losing money due to exposure of its business practices through a class action lawsuit based on the false health claims, a critical 20/20 news special, and a civil suit filed by the Attorney General of Texas.

History

Mannatech was founded by Samuel Caster in 1993, as Congress prepared to pass the Dietary Supplement Health and Education Act of 1994, which made feasible the profitable marketing of a wider spectrum of dietary supplements. The company has had a Christian orientation since its founding; the name was intended to evoke manna, and it recruited people to sell its products through its multi-level marketing structure in church congregations. Prior to founding Mannatech, Caster had founded and run Eagle Shield, an insulation manufacturer, and Electracat, a pest control device; both were categorized as a hoax by the Texas Attorney General's office.

Mannatech was founded to sell dietary supplements and personal care products. Before developing its own products, the company sold Manapol, an aloe vera extract made by another company. Its most widely known product has been Ambrotose, a dietary supplement made from sugars derived from plants.

From 1993 to 2009, Rafael Cruz, father of presidential candidate Ted Cruz, was a top salesman for Mannatech.

Mannatech had its initial public offering (IPO) on February 16, 1999, at $8 a share. The stock price settled a few weeks later at a price of $15.13 a share and a market capitalization of $366 million. The IPO raised $12 million in funds to be used for expansion into Australia and the U.K.

False claims and lawsuits

The company came to be known for unproven claims that its products could be used to treat many diseases and conditions, including cancer, diabetes, autism and AIDS. There is no evidence that any of these claims were or are true.

In May 2005 an article was published in Barron's questioning the company's business practices. In September 2005, a class-action lawsuit was filed against Mannatech for alleged violations of the Securities Exchange Act; it was prompted by the Barron's article.

In 2006, Mannatech distributor Vivienne Balonwu, a U.K. general practitioner, was found by the U.K. General Medical Council panel to have "abused her power as a doctor" after it was determined that she had illegally promoted and sold the company's products to people as a treatment for medical conditions such as chronic obstructive pulmonary disease and stroke-related complications. Following patient complaints about her marketing of the products in 2006, Balonwu was dismissed by her employer, Harmoni, a medical services company, and the GMC panel imposed a 15-month penalty period during which she was "to avoid private or short term locum work" and "to complete a supervised personal development plan to tackle shortcomings in her practice".

Also in 2006, Mannatech was named #5 on Forbes’ list of America's 200 Best Small Companies. At the same time, the company came under investigation by the Texas Attorney General in October 2006 for alleged violations of that state's Deceptive Trade Practices Act. In July 2006, Texas Attorney General Greg Abbott formally charged Mannatech, MannaRelief, Sam Caster, and Reginald McDaniel, the company's medical director, with operating an illegal marketing scheme in violation of state law.

A 20/20 undercover investigation that aired June 1, 2007 on ABC Television showed Mannatech's sales associates teaching sales recruits how to target Mannatech products to people with specific illnesses in a manner that purportedly does not violate U.S. federal law, including U.S. Food and Drug Administration regulations, by avoiding direct claims that the products cure any particular diseases.

In August 2007, Caster resigned as CEO of Mannatech. In October 2007, it was reported that the company had fired Grant Thornton LLP as its auditor after the accounting firm demanded that Mannatech remove Caster from all responsibilities to be replaced by Wayne Badovinus as the new chief executive. Several corporate initiatives were undertaken, but after 17 months on the job Badovinus resigned in December 2009. Another member of the board resigned shortly after. Mannatech's Chief Science Officer Robert Sinnott and Mannatech's chief financial officer Steve Fenstermacher were named Co-CEOs. Fenstermacher later resigned.

Publicity over the company's lawsuits began to damage the balance sheets and stock performance. After profits of $32 million in 2006 and $6.6 million in 2007, Mannatech reported a $12.6 million loss in 2008 and a $17.3 million loss in 2009.

Mannatech settled the civil complaint with the State of Texas in February 2009; Mannatech did not admit wrongdoing but agreed to pay $4 million in restitution to clients who purchased products and $2 million to the state to cover its costs in the case. In addition, Sam Caster agreed to pay a $1 million civil penalty and steer clear of any type of leadership position or employment relationship with Mannatech for five years.

In March 2008, Mannatech settled the class-action lawsuit by agreeing to pay $11.25 million to the plaintiff class. As part of the settlement, Mannatech admitted no wrongdoing.

2010 losses were $10.6 million. As the company's market capitalizations continued to fall, S&P Indices dropped it from the S&P 600 Index, stating "They are no longer representative of the small cap market space." Recruiting efforts continued dropping in 2011, widening company losses to $20.6 million. For 2012, the company's net loss narrowed to around $1 million from the about $21 million loss the year before. In 2013, it had around $3 million in net income, and in 2014, it reported profits of $6.5 million and total revenue of $190.1 million.

In November 2017, Mannatech received an FDA warning letter for illegally marketing several of its supplement products as medicinal agents and for selling adulterated and misbranded products in violation of Title 21 of the Code of Federal Regulations and Good Manufacturing Practice regulations for dietary supplements. In December 2017, Mannatech reached an agreement with the Town Council of Flower Mound, Texas, to relocate its headquarters to an existing facility in the city.

Ben Carson

Starting in 2004, neurosurgeon and conservative politician Ben Carson made videos and spoke at company events promoting Mannatech and its products. In 2004, in a speech at a Mannatech event, he credited the company's products with the disappearance of his cancer symptoms.

Carson's image still appeared on the Mannatech's website in 2014, and in the same year he praised their "glyconutrient" supplements in a PBS special (The Missing Link – The Science of Brain Health), sponsored by a group of Mannatech distributors, that was subsequently featured on the site. During the CNBC GOP debate on October 28, 2015, Carson was asked about his relationship with Mannatech and denied any involvement with the company. Politifact rated Carson's denial of any involvement as "false". In November 2015, Mannatech said on its website that, for compliance with Federal campaign finance regulations, the company had removed all references to Carson before he announced his bid for the presidency.

See also

References

  1. ^ "Mannatech / United States Securities and Exchange Commission Form 10-K". United States Securities and Exchange Commission. Retrieved May 22, 2016.
  2. ^ "Glyconutrients". Memorial Sloan–Kettering Cancer Center. November 23, 2015. Retrieved August 22, 2017.
  3. ^ Torok CB, Murray TH (2008). "Wielding the sword of professional ethics against misleading dietary supplement claims". Glycobiology. 18 (9): 660–663. doi:10.1093/glycob/cwn060.
  4. ^ Jocelyn Kaiser (2007). "Who Owns Glycobiology?". Science. 318 (5851): 734–737. doi:10.1126/science.318.5851.734. PMID 17975043. S2CID 153952585.
  5. "Watchdog: Mannatech founder, banned from company, still works from inside". Dallas News. November 23, 2013. Retrieved December 6, 2018.
  6. Geraghty, Jim (January 12, 2015). "Ben Carson's Troubling Connection". National Review. Retrieved October 30, 2015.
  7. ^ Twohey, Megan (April 29, 2016). "Ted Cruz's Father Worked With Supplements Maker Sued by Investors". The New York Times. Retrieved April 30, 2016.
  8. Lieber, Dave (November 23, 2013). "Mannatech founder, banned from company, still works from inside". Dallas Morning News. Retrieved March 3, 2014.
  9. Brammer, Rhonda (May 9, 2005). "Manna From Texas". Barron's. Dow Jones & Company. Retrieved May 26, 2018.
  10. McGill, Adam (October 18, 2006). "Re: Mannatech". D Magazine. Retrieved October 20, 2018.
  11. Mannatech, Incorporated (March 16, 2006). "Form Mannatech, Incorporated: 10K SEC Public Filing for FY 2005". United States Securities and Exchange Commission. Retrieved May 23, 2010.
  12. Dubose, Lou; Harper, Hannah (October 19, 2015). "Ted Cruz's dad has a very sketchy resume: Rafael Cruz's credentials are exaggerated, at best". Salon. Retrieved April 30, 2016.
  13. Weil, Jonathan (February 24, 1999). "Mannatech, a Hot IPO Last Week, Now Leaves Some Analysts Cold". The Wall Street Journal. Retrieved October 20, 2018.
  14. Danny Robbins (September 10, 2006). "Nobel Prize winners say sites falsely cite research". Fort Worth Star-Telegram. Archived from the original on December 6, 2006.
  15. Sataline, Suzanne (May 11, 2007). "Health Claims by Sales Force Boost Supplement Firm; Mannatech's Products Attract the Gravely Ill; Disclaimers on Labels". The Wall Street Journal. Retrieved July 8, 2007.(subscription required)
  16. ^ Avila, Jim; Martz, Geoff; Paparella, Andrew (June 1, 2007). "Cure for Your Disease or Empty Promise?". Yahoo!-ABC News Network. ABC News Internet Ventures. Retrieved July 8, 2007.
  17. Schnaar RL, Freeze HH (2008). "A 'Glyconutrient Sham'". Glycobiology. 18 (9): 652–657. doi:10.1093/glycob/cwm098. PMID 17855741. Open access icon
  18. Schnaar, Ronald L; Freeze, Hudson H (2017). "A "Glyconutrient Sham" and the Jenner Glycobiology and Medicine Symposium". Glycobiology. 27 (5): 383–384. doi:10.1093/glycob/cwx024. ISSN 0959-6658. PMID 28384366.
  19. "Bounceback by Mannatech". Truth in Advertising. December 7, 2017. Retrieved June 22, 2018.
  20. Schultz, Hank (November 28, 2017). "Mannatech sales slide; warning letter questions meaning of 'glyconutrients'". NutraIngredients. Retrieved June 22, 2018.
  21. ^ Caulfield, Christine (March 21, 2008). "Mannatech Settles Investors' Suit For $11M". Law360. Retrieved June 22, 2018.
  22. Brammer, Rhonda (May 9, 2005). "Manna From Texas". Barron's. Retrieved June 22, 2018.
  23. "Case Page: Mannatech, Inc. Securities Litigation". Securities Class Action Clearinghouse. Retrieved June 22, 2018.
  24. Dyer, Owen (March 29, 2008). "GP advised patients to take pills made by company she worked for". BMJ. 336 (7646): 689. doi:10.1136/bmj.39532.350729.DB. PMC 2276256. PMID 18369218.
  25. Gage, Jack (October 13, 2006). "America's 200 Best Small Companies". Forbes. Retrieved October 20, 2018.
  26. "The 200 Best Small Companies: #5 Mannatech". Forbes. October 12, 2006. Retrieved October 20, 2018.
  27. Greenberg, Herb (October 27, 2006). "Texas Attorney General probing Mannatech". MarketWatch, Inc. Retrieved July 8, 2007.
  28. "State of Texas v. Mannatech et al" (PDF). July 5, 2007. Retrieved January 29, 2015.
  29. "Texas Attorney General Charges Mannatech with Unlawful, Misleading Sales Practices". Texas Attorney General Greg Abbott. July 5, 2007. Retrieved July 8, 2007.
  30. ^ Sataline S (August 22, 2007). "Caster Resigns as CEO of Mannatech". The Wall Street Journal. Retrieved April 6, 2008.
  31. Sataline S (October 19, 2007). "Mannatech Fires Its Auditor Amid Dispute Over Founder". The Wall Street Journal. Retrieved April 6, 2008.(subscription required)
  32. ^ Roberson, Jason (December 4, 2009). "Mannatech CEO quits after 17 months on the job". Dallas Morning News. Retrieved December 27, 2009.
  33. "Mannatech Announces Board Resignation (press release)". Bloomberg. December 24, 2009. Archived from the original on May 2, 2014. Retrieved December 27, 2009.
  34. Blitzer, David M. (December 3, 2009). "Mannatech (MTEX) CEO Badovinus Resigns". StreetInsider.com. Retrieved November 28, 2010.
  35. "Mannatech announces the resignation of co-CEO, CFO Stephen Fenstermacher". Theflyonthewall.com. Yahoo Finance. December 16, 2011. Retrieved May 21, 2012.
  36. Panchuk, Kerri (August 4, 2010). "Mannatech's profit narrows net loss, sales decline". Dallas Business Journal. Retrieved August 12, 2010.
  37. Roberson, Jason (February 26, 2009). "Mannatech, former CEO settle with state". Dallas Morning News. Archived from the original on February 28, 2009. Retrieved February 26, 2009.
  38. "Mannatech Settles with Attorney General". Dallas Business Journal. February 26, 2009. Retrieved February 26, 2009.
  39. "Texas Attorney General Abbott Reaches Agreement To Halt Deceptive Trade Practices". Attorney General of Texas Greg Abbott. February 26, 2009. Retrieved August 31, 2013.
  40. "Mannatech Inc 2010 Annual Report - Form 10-K". EDGAR. U.S. Securities and Exchange Commission. March 10, 2011. p. 34. Retrieved May 15, 2012.
  41. Blitzer, David M. (November 26, 2010). "Standard & Poor's Announces Changes to U.S. Index (press release)" (PDF). The McGraw Hill Companies. Archived from the original on April 2, 2015. Retrieved November 26, 2010.
  42. Press Release (March 28, 2012). "Mannatech Reports Fourth Quarter And Year End Results". Business Wire. Retrieved April 1, 2012.
  43. "Mannatech Form 10k For the fiscal year ended December 31, 2012". SEC Edgar. p. 37.
  44. ^ Maremont, Mark (October 5, 2015). "Ben Carson Has Had Ties to Dietary Supplement Firm That Faced Legal Challenge". Wall Street Journal. ISSN 0099-9660. Retrieved October 20, 2018.
  45. Garcia, Edmundo Jr. (November 14, 2017). "FDA Warning Letter to Mannatech, Inc". U.S. Food and Drug Administration. Retrieved June 22, 2018.
  46. Pry, Lyn Rejahl (December 5, 2017). "Flower Mound approves agreement with Mannatech for new HQ". The Cross Timbers Gazette. Retrieved October 20, 2018.
  47. ^ Grabow, Chip (October 30, 2015). "Ben Carson had extensive relationship to Mannatech". CNN. Retrieved June 23, 2018.
  48. Jim, Geraghty (January 16, 2015). "Carson to Newsmax: 'I Didn't Know Anything About all [Mannatech's] Legal Stuff.'". National Review. Retrieved January 24, 2015.
  49. Geraghty, Jim (January 12, 2015). "Ben Carson's Troubling Connection". National Review. Retrieved November 2, 2015.
  50. Ford, Matt (October 29, 2015). "Ben Carson's Mannatech Problem". The Atlantic. Retrieved October 31, 2015.
  51. Lauren Carroll (October 29, 2015). "At debate, Ben Carson says he has no connection to Mannatech". Politifact. Retrieved October 30, 2015. As far as we can tell, Carson was not a paid employee or official endorser of the product. However, his claim suggests he has no ties to Mannatech whatsoever. In reality, he got paid to deliver speeches to Mannatech and appeared in promotional videos, and he consistently delivered glowing reviews of the nutritional supplements.
  52. "Mannatech's Response to Question at GOP Presidential Debate". Mannatech website. November 3, 2015. Retrieved November 9, 2015.

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