USANA ordered to pay legal fees

A Utah multilevel marketing company ordered to pay attorney's fees to a critic has one claim left to pursue against the self-styled fraud-buster.

USANA Health Sciences Inc. said it would try to show that Barry Minkow worked in cahoots with market players to cause the company's stock to "crater."

"Our case is about the link between Minkow and hedge funds and short sellers who made Lord knows how many millions of dollars off Minkow's report," company attorney D.J. Poyfair said Wednesday.

USANA, with headquarters in Salt Lake City, makes vitamin and mineral supplements and personal-care products.

Minkow came out with his first critical report on USANA in February 2007 when he bought "put" options on USANA's stock in a legal bet the price would fall. He denies charges of market manipulation, and said he spent more money investigating USANA than he gained from the options.

USANA was reacting to Salt Lake federal Magistrate Samuel Alba's order Wednesday that it pay $142,510 in attorney fees to Minkow and his Fraud Discovery Institute in San Diego.

Alba acted after U.S. District Judge Tena Campbell ruled on March 3 that USANA violated California's anti-SLAPP (Strategic Lawsuit Against Public Participation) law by filing a lawsuit that lacked merit against the Minkow.

Campbell allowed one federal claim, asserting securities manipulation, to play out in court.

"These guys can't take 'We lost' for answer," Minkow said Wednesday. "Come on, guys, just drop this thing, move on."

Minkow has criticized USANA for its network marketing business model, once-soaring share price and series of flaps involving the credentials of top executives and sales associates.