Nutrition For Life Company

A Garden Grove nutrition company accused of making false claims about its diet products and operating an illegal pyramid scheme has settled a consumer protection lawsuit, the state attorney general's office said Wednesday.

Nutrition for Life International Inc. said it will pay as much as $3.5 million and distribute products valued at $800,000 to settle lawsuits accusing it of running a pyramid scheme and defrauding investors. The Houston-based marketer of health foods and other products said it agreed to pay $2 million to investors who purchased stock from July 1995 to July 1996 and lost money. During that period, Nutrition for Life shares soared to a high of $35 before hitting as low as $10.

Nutrition for Life International Inc. said it will pay as much as $3.5 million and distribute products valued at $800,000 to settle lawsuits accusing it of running a pyramid scheme and defrauding investors. The Houston-based marketer of health foods and other products said it agreed to pay $2 million to investors who purchased stock from July 1995 to July 1996 and lost money. During that period, Nutrition for Life shares soared to a high of $35 before hitting as low as $10.

Nutrition for Life International Inc. said Thursday that the Securities and Exchange Commission is investigating the way the company distributes its wide range of health products, triggering a sell-off of its stock. The stock fell $4 to close at $19 in trading of 261,500 shares on Nasdaq. The inquiry seemed to be focused on the Houston-based company's "executive-level distributor program," it said.

Nutrition for Life International Inc. said Thursday that the Securities and Exchange Commission is investigating the way the company distributes its wide range of health products, triggering a sell-off of its stock. The stock fell $4 to close at $19 in trading of 261,500 shares on Nasdaq. The inquiry seemed to be focused on the Houston-based company's "executive-level distributor program," it said.

A Garden Grove nutrition company accused of making false claims about its diet products and operating an illegal pyramid scheme has settled a consumer protection lawsuit, the state attorney general's office said Wednesday.