Dallas based dietary supplements seller Mannatech Inc. will return $4 million to customers and its founder will pay a $1 million fine for lying about the health benefits of its products, according to the Texas attorney general’s office.
Attorney General Greg Abbott said the Coppell-based company tricked people into thinking its products would prevent, treat or even cure diseases.
Mannatech is required to send notice letters and restitution claim forms to all customers eligible for reimbursement within 15 days.
Abbott sued the multilevel marketing company after public reports accused Mannatech of selling its supplements as cures for cancer, Down syndrome, multiple sclerosis, attention deficit disorder, asthma, toxic shock syndrome, and other diseases and conditions.
The lawsuit, filed in July 2007, accused the company of engaging in an illegal marketing scheme that defrauded consumers nationwide.
Mannatech makes supplements, known as glyconutrients, that were said to provide the body with essential sugars. The theory, according to the company, is that the sugars are essential to promote better communication between the body’s cells, which support the immune system.
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