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Mannatech CEO Fined for Deceptive Trade

DALLAS (CN) - Mannatech agreed to pay Texas consumers $4 million in restitution for falsely claiming its dietary supplements could cure Down syndrome, cancer and cystic fibrosis, Attorney General Greg Abbott said. Mannatech founder and CEO Samuel Caster must pay a $1 million civil penalty and cannot work for the company for five years under the agreement.

The settlement stems from deceptive trade practice charges the state brought in 2007.

"Under state and federal law, drug manufacturers cannot claim their products cure, treat, mitigate or prevent illness unless the product has been approved by the U.S. Food and Drug Administration as a drug," Abbott said. "Mannatech's products are supplements, not drugs, and they have not been approved as drugs by the (FDA)."

A self-proclaimed "global wellness solutions provider," Mannatech is based in Coppell, Texas and sells nutritional supplements in 10 countries.

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