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Nu Skin Is Under Investigation

Citron Research makes claims of multi-level marketing in China.

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By: TOM BRANNA

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Corporate litigation boutiqueBronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the securities of Nu Skin Enterprises concerning potential violations of federal securities laws.


On Aug. 7, shares of Nu Skin fell approximately 9% to close at $44.36 after short-seller Citron Research published a report alleging that the personal-care products maker is operating an illegal multi-level marketing scheme in China. Citron alleged that Nu Skin’s direct-selling business in China was actually “pyramid-selling” and was illegal under Chinese law.

“We believe they violate laws regulating direct selling, as well as the prohibition on pyramid sales, specifically by supporting the creation of a multi-level pyramid compensation scheme, as well asrequiring purchases in order to participate in sales commissions or salary,” Citron said.

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