USANA and its Grand Pyramid Scheme - The Untold Truth
Arbitrator Rules Against USANA and Awards Former Distributor Approximately $7 Million

A recent ruling by an arbitrator in the state of Utah awarded an ex-USANA distributor about $7,000,000 for being wrongfully terminated. These types of rulings usually go unnoticed and kept from the public. However, because the amount awarded was so much, it became material information and had to be disclosed in an SEC filing. The following is what USANA filed in December 22, 2008:


"In December 2008, an arbitrator in the State of Utah awarded a former USANA distributor approximately $7 million in compensatory damages for wrongful termination. This top-level distributor was terminated in 2003 for a material breach of their distributor agreement and for violating USANA's policies and procedures. USANA is disappointed with the arbitrator's ruling and believes that neither the decision rendered nor the amount awarded is supported by the facts of the case. USANA plans to pursue all available legal remedies to set aside and vacate the award. However, no assurance can be given that USANA will be successful in vacating the award.

USANA believes that distributor compliance is critical to the integrity of its business and is aggressive in enforcing its agreements with distributors. As a result, USANA periodically becomes involved in distributor compliance actions and considers these actions routine and incidental to its business. The arbitration described above is no exception and is the first ruling against USANA in a distributor compliance action. USANA will continue to be aggressive in enforcing its agreements with distributors.

The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. The furnishing of the information in this Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Current Report contains is material investor information that is not otherwise publicly available."

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