June 29, 2020

DOJ and SEC decline FCPA enforcement against Utah health products company

On June 29, 2020, Usana Health Sciences, Inc., a Utah-based multi-level marketing company that focuses on health products, announced in a regulatory filing that the US Department of Justice and the US Securities and Exchange Commission have closed their investigations into potential violations of the US Foreign Corrupt Practices Act by Usana’s Chinese subsidiary, BabyCare Ltd., and would not take any enforcement action against the company.  In its declination letter to the company, the SEC cited several factors, including Usana’s timely and voluntary disclosure, its thorough internal investigation, its full cooperation, and its remediation of the issues underlying the investigation. The DOJ also noted the Company’s cooperation in its letter informing the company that it had closed the investigation. 

Usana first disclosed this issue in February 2017, when it announced that it was conducting an internal investigation into issues concerning BabyCare’s expense reimbursement policies, and later disclosed that it was cooperating with the DOJ and SEC in connection with the issues under investigation.

Form 8-K