Trading in NuSkin is HALTED AGAIN after it resumed this afternoon just moments ago. The stock is down 38%.
The company has also released a statement saying that is conducting an internal province-by-province investigation into its business practices in China.
“We are aware that Chinese regulators have now initiated investigations to review issues raised by recent news reports.” it said in the release. “The government regularly monitors all businesses in this rapidly growing marketplace, and as is our practice, we will continue to communicate openly with regulators to address any questions they may have.”
Earlier this week, the multi-level marketing firm was the subject of a negative article in The People’s Daily” in China.
The article claimed that the company lies to its distributors, was sold without proper regulatory approvals, and made inaccurate scientific claims.
NuSkin fired back with a press release that said the article itself was inaccurate:
“We are dedicated to operating in full compliance with applicable regulations as interpreted and enforced by the government of China,” it continued. “Nu Skin has an 11-year history of doing business in China under these regulations. Our business activities are regularly monitored by the government in this rapidly growing marketplace. As is our practice, we will communicate openly with regulators to address questions arising from this article.
“Nu Skin has government-approved direct selling licenses to operate in a majority of provinces in China. The most recent government licensure in July further expanded our direct selling footprint to include 19 of the country’s 32 provinces.
“We actively educate our sales force to follow all regulations as well as company policies and procedures, and any member of our sales force not operating in accordance with local law or with our company policies is subject to discipline.”
Herbalife, the infamous multi-level marketing firm shorted by hedge fund manager Bill Ackman, is also down 10% today.