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Posted February 27, 2009
$4 Million Settlement by Supplement Maker for False Claims
On February 26, 2009, the Texas Attorney General announced that an agreement was reached with Mannatech Inc. and its former CEO, Samuel L. Caster, both of which had been charged with orchestrating an unlawful marketing scheme that exaggerated their products’ health benefits. Under the settlement, Mannatech will pay $4 million in restitution to Texas customers. Caster, the company’s founder and largest shareholder, will pay a $1 million civil penalty and is prevented from serving as an officer, director, or employee of Mannatech for the next five years.