After authorities in China said they would look into accusations that Nu Skin Enterprises operates a pyramid scheme in the country, shares of Nu Skin were halted four times today. At press time, shares were down 30%. The People's Daily, the Communist Party mouthpiece, said on Wednesday that NU Skin had been exaggerating its influence and creditworthiness in company brochures by passing advertisements for news reports, and organising "brainwashing" gatherings.
In a statement, Nu Skin said it will communicate and cooperate with Chinese regulators and conduct its own business review in China.
"As we work through this evolving situation and remain focused on long-term growth, there will likely be a negative impact on China revenue, but it is too early to know whether our previous guidance will be affected," Nu Skin said in a statement.