Mannatech, Inc. (MTEX), its Chief Financial Officer and the Chairman of its Audit Committee have received a Wells Notice from the staff of the SEC’s Division of Enforcement. The company announced that the Wells 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.
Mannatech had previously disclosed an informal inquiry by the SEC with respect to the disclosure in its Form 10-K for the year ended December 31, 2007.
According to the company, the Wells Notice indicates that the Staff is considering recommending that the SEC bring cease and desist proceedings against Mannatech and the individuals alleging that it violated, and the individuals allegedly caused it to violate, Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rules 13a-11 and 12b-20 thereunder.
