SAN DIEGO/EWORLDWIRE/June 20, 2008 --- In newly released lab results by Fraud Discovery Institute (FDI) from one of the nation's largest labs with a presence in over 30 countries, both Usana Health Sciences (NASDAQ: USNA) and Herbalife (NYSE: HLF) have lead levels that are over 1000 times the lead allowed under California law when taken as directed daily. The new results also revealed that the average lead content for non-multi level marketing health drinks averaged 0.607 micrograms per day while Usana and Herbalife combined for a whopping 9.760 micrograms of lead per day. "I do not care what your liberal interpretation of Proposition 65 might be," said attorney Christopher Grell, "but these percentages are astounding and will hopefully catch the eye of California regulators." Also released today were the results of a 10-year study conducted by multi level marketing expert Robert Fitzpatrick, in which he analyzed 11 multi level marketing companies, 5 of which are publicly traded.
In that study, a copy of which can be found at 'http://www.frauddiscovery.net', Mr. Fitzpatrick reveals the truth regarding the myth of the multi level marketing business opportunity by uncovering three undeniable truths:
(1) On average, no net income is earned by MLM distributors from door-to-door "retail" sales
(2) The salesforces of Herbalife, Usana and the other companies analyzed are churned (lost money/quit/replaced) at rates between 60 and 90 percent each year
(3) A staggering 99 percent of all sales representatives each year in the sample of companies analyzed earned on average less than $13 a week in commission income
According to Mr. Fitzpatrick in the report prepared for Mr. Grell, "The (income) figure represents a significant financial loss for virtually all that join these schemes. As extreme as the loss rate is, this figure is conservatively understated because it is calculated before all business expenses, inventory purchases and taxes are factored, which would increase total losses and the percentage of those losing."
As for the materiality of the lead tests, the actual lead test results can be found at 'http://www.frauddiscovery.net', and the graph summarizes the results of testing on a Usana Health Sciences product which, according to FDI Co-founder Barry Minkow, "affirms outrageous results."
One serving of the Usana Macro-Optimizers Nutrimeal Shake contains over 6.7 micrograms of lead: 1,252 percent more than the level allowed under Californias Proposition 65. If taken twice a day as suggested on the Nutrimeal label, an individual will consume 13.4 micrograms of lead a day, or 2,584 percent more than allowed under Prop 65. Herbalife did not fair much better.
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