On Thursday, BloggingStocks writer Kevin Kelly wrote about former stock fraudster turned private investigator, Barry Minkow's scathing report on USANA Health Sciences, a multi-level marketing company. When the Wall Street Journal picked up Minkow's research, the stock tumbled 15% in one day. At 9:03 that night, USANA Health Sciences (NASDAQ: USNA) reported that it had filed a lawsuit against Barry Minkow and his Fraud Discovery Institute, accusing him of defamation. The company issued a statement that begins:

"USANA believes Mr. Minkow's statements are part of a coordinated public relations program financed by a paying client and from which Mr. Minkow will profit personally. According to reporting in the March 15, 2007 edition of The Wall Street Journal, Mr. Minkow , '...has bought 'put' options on USANA's shares in a bet the price will fall.' Mr. Minkow admits that he has been paid to conduct his 'investigation' against USANA. Further, he has engaged a public relations firm to propagate his false and misleading statements about USANA to the media."

Continue reading BloggingStocks Exclusive: Ex-Con Barry Minkow responds to USANA lawsuit

BloggingStocks Exclusive: Ex-Con Barry Minkow responds to USANA lawsuit originally appeared on BloggingStocks on Sat, 17 Mar 2007 09:47:00 EST. Please see our terms for use of feeds.