A state judge on Monday listened to arguments about whether a USANA Health Sciences Inc. shareholder should get a preliminary injunction to stop the sale of the company's outstanding shares of common stock.
Third District Judge John Paul Kennedy conducted the hearing after closing the courtroom. Attorneys for the parties objected to the presence of two news reporters because the hearing would include information they deemed to be confidential. The judge sealed the record of the hearing. Attorneys in the case did not return phone calls seeking comment Monday afternoon.
The lawsuit was filed by Max J. Silberman, of Ohio. The complaint was the second shareholder lawsuit attempting to gain class-action status and stop the sale of the shares. USANA and a group of investors, led by USANA chairman and chief executive officer Myron Wentz, wants to buy the outstanding shares.
Gull Holdings Ltd. and Unity Acquisition Corp. said in May that they would make a tender offer to acquire outstanding USANA shares at that price in a move to take the company private. Wentz controls Gull, and Gull and its affiliates control about 68 percent of USANA common stock.
The investors originally offered $26 per share but recently upped the price to $28 per share. A special committee of the USANA board of directors has described both offers as "inadequate."
Salt Lake City-based USANA develops and manufactures nutritional, personal-care and weight-management products.