Mannatech (NASDAQ: MTEX) disclosed on Friday that it had received a Wells Notice from the SEC, indicating that the commission may pursue enforcement action.
In the press release, Mannatech said that the notice is "related to the timing and completeness of Mannatech's October 2007 disclosure regarding its dismissal of Grant Thornton LLP as its independent registered public accountants."
Back in October, when Mannatech fired Grant Thornton, I questioned the timing and rationale of the decision and now it seems the SEC isn't satisfied with the company's reason for the end of the relationship. Amazingly, shares of Mannatech didn't tank today, but they should have: the integrity of the company's management, directors and disclosures has been called into question, and if you don't know if the company is telling the truth, it's hard to tell how much it's worth.
If you need another reason not to own shares of Mannatech, consider the lawsuit filed against the company by the Texas attorney general alleging illegal marketing practices.
Mannatech receives Wells Notice from SEC
Posted Sep 8th 2008 5:10PM by Zac Bissonnette
Filed under: Law, Scandals, Stocks to Sell