Nu Skin under SEC investigation, enforcement pending?

6 Comments on “Nu Skin under SEC investigation, enforcement pending?”

#1

anjali

Nov 14th, 2014 at 2:18 pm  anjali(Q)

here’s the full statement of CEO truman hunt on the Q3,2014 earnings call on nov,5 :

Now we’ve had a couple of questions this morning on a news story of a potential SEC inquiry, so we want to provide a response to this issue to the extent that we can.

As we’ve previously discussed on many occasions throughout the year, the company’s Audit Committee initiated a voluntary review of our China business last January in response to media and government inquiries there. At the SEC’s request, we have communicated with the SEC a few times during the course of the year on a voluntary basis to report on the status of this internal review.

To our knowledge, the SEC has not opened a formal investigation nor made any request for the production of documents. As always, we’re committed to maintaining an open and a transparent dialogue with the SEC and with all regulatory agencies, both here and abroad.

note the phrase ‘At the SEC’s request ‘, hence confirming at least an informal investigation . truman hunt is trying to convey that the SEC is reviewing nuskins china troubles .

i think there’s more to it . meanwhile stock has tanked.



#2

Cannon Ball

Nov 14th, 2014 at 11:17 pm  Cannon Ball(Q)

Nu Skin, Herbalife, Amway, and 99% of all MLM companies have the same thing in common, that being that the vast majority of all of their “distributors” (i.e. “members”) don’t have retail customers.

The term “distributor” is left over from the old days of MLM. These days it’s just people signing up, buying product for personal use AND buying product to keep “active” in the pay plan, and recruiting others to do the same.

And that, my friends, makes most MLM companies mere “buying clubs”.

I’m no legal expert, nor am I a prophet, but I have a hunch that the MLM industry as we know it is going to be turned inside out and cleaned up, and for the better.



#3

anjali

Nov 15th, 2014 at 4:23 pm  anjali(Q)

And that, my friends, makes most MLM companies mere “buying clubs”—cannon ball

and that, my friends , is completely legal, because the FTC says so itself .

I’m no legal expert, nor am I a prophet, but I have a hunch that the MLM industry as we know it is going to be turned inside out and cleaned up, and for the better—cannon ball

absolutely , a good clean up, can never be a bad thing !



#4

StrongForce 1

Nov 17th, 2014 at 8:47 am  StrongForce 1(Q)

At some point in time, the Nu Skin “Stair-step to heaven but you end up in HELL” comp plan will start to come unglued and it will catch up to them.

It could be happening now. I will not feel any remorse at all when it does. They make the Mafia look like kindergartners.



#5

anjali

Nov 20th, 2014 at 3:32 pm  anjali(Q)

@oz

did you know about this, OR , what happened to this ?

Three lawsuits have now been filed in the Utah District Court alleging that Nu Skin made false or misleading representations to investors regarding its business in China, and risks to its business.

These cases will likely be consolidated into one case. If you bought stock in the Company during the Class Period, have significant losses in excess of $100,000 and wish to serve as a lead plaintiff in these cases, please contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (Ozedit: phone number removed).

reuters.com/article/2014/03/10/wa-hagens-berman-idUSnBw106247a+100+BSW20140310



#6

anjali

Nov 20th, 2014 at 4:03 pm  anjali(Q)

“misleading representations to investors regarding its business in China ” and the subsequent fall in the stock , leading to heavy investor losses COULD BE the reason behind the informal SEC investigation . it MAY not be about the business model of nuskin .