Nu Skin Volatile Amid Inventory Fraud Allegations
Nu Skin Enterprises, Inc. (NYSE: NUS) spiked lower Wednesday afternoon following a tweet from Sam E. Antar:
— Sam E. Antar (@SamAntar) November 26, 2014
According to the court filing, “Nu Skin annually disposes of millions of dollars worth – many tractor trailer loads – of returned, overstocked, expired, mislabeled, damaged, or otherwise unwanted or unusable Nu Skin products. On information and belief, Nu Skin refers to such products as “Dump Product” because such product, if it is not given to Nu Skin employees through its employee store (“Employee Store”) or donated to charity, is sent to the dump, i.e. , a landfill.”
The court case involves Nu Skin allegedly donating products in an effort to track product diversion outside its authorized sales channels and then claiming the donated property was stolen.
Nu Skin Enterprises recently traded at $41.78, down 0.29 percent.
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