USANA Health Sciences, Inc. Investor Investigation

PRLog (Press Release) - Mar 24, 2009 -
An investigation on behalf of current investors in USANA Health Sciences, Inc (Nasdaq: USNA) over possible violations of Federal Securities Laws was announced.

If you currently hold USANA Health Sciences, Inc (NASDAQ: USNA) shares and or hold USANA Health Sciences, Inc (NASDAQ: USNA) since as early as April you should contact the Shareholders Foundation, Inc. immediately!

Email: Mail@ShareholdersFoundation.com

or Call us TODAY!

Phone: +1-(858)-779-1554

According to the investigation by a law firm on January 22, 2009, before the market opened USANA Health Sciences, Inc announced its preliminary fourth quarter and full year 2008 results.  In that preliminary announcement of its financial results, USANA Health Sciences, Inc disclosed a “one-time adjustment” of approximately $1.8 million to earnings resulting from an audit by the IRS of the years 2003 through 2006, as well as an estimated $10 million impact on its cash.  At that time, USANA Health Sciences, Inc stated that “the company believes that these potential adjustments would not materially affect historical net income or earnings per share, but may materially affect the balance sheet.”

On February 23, 2009, USANA Health Sciences, Inc announced that it would need to restate all of its 2007 and 2008 quarterly results, as well as its annual results for 2006 and 2007.  In a Form 8-K filed that day, USANA Health Sciences, Inc stated as follows:

“On February 17, 2009, the Audit Committee of the Board of Directors of USANA Health Sciences, Inc (the “Company”) determined that the Company’s previously filed quarterly financial statements for 2007 and 2008 and the financial statements for 2006 and 2007 should no longer be relied upon and should be restated to correct two errors related to income taxes payable during those periods….The reports of the Company’s independent registered public accounting firms related to the Company’s financial statements as of and for the years ended December 30, 2006 and December 29, 2007 are also withdrawn.”

In addition, so the investigation, to the announcement of future restatements, the February 23, 2008 Form 8-K went on to say that during 2008 the IRS had commenced an audit of USANA Health Sciences, Inc.  Pursuant to the audit, in January 2009, the IRS communicated its intent to disallow deductions that had been claimed by USANA Health Sciences, Inc related to the treatment of stock option grants as “performance-based compensation” under IRC Section 162(m).  In February 2009, USANA Health Sciences, Inc settled the matter with the IRS by agreeing that the cumulative tax impact would be the loss of $11.8 million in tax deductions for the audited tax years resulting in estimated tax due of $4.4 million, plus $0.8 million in interest. On January 22, 2009 when the initial disclosure of a “one-time adjustment” was made, USANA’s publicly traded common stock declined from $31.25 to $30.93.  On February 23, 2009 when the final settlement with the IRS and need for restatements was announced, the common stock declined $1.92 to $20.08 from $22 the previous day, so the investigation.  

If you currently hold USANA Health Sciences, Inc (NASDAQ: USNA) shares and or hold USANA Health Sciences, Inc (NASDAQ: USNA) since as early as April you should contact the Shareholders Foundation, Inc. immediately!

Email: Mail@ShareholdersFoundation.com

or Call us TODAY!

Phone: +1-(858)-779-1554

Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com  
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