August 10, 2007 / 3:24 AM / 12 years ago

UPDATE 1-USANA says Forbes article makes false statements

(Adds details from Forbes article)

NEW YORK, Aug 9 (Reuters) - USANA Health Sciences Inc. USNA.O said on Thursday that an article on the Web site of the Forbes business news magazine contains errors and allegations.

The article details what it describes as tough times for the vitamin maker after the company said in March that it was the subject of a probe into its sales practices by the U.S. Securities and Exchange Commission.

That, the article said, was followed in July by the resignation of its long-time auditor.

“In particular, the claim that USANA may have breached a loan covenant regarding a $40 million line of credit from Bank of America is completely false,” the company said in a statement.

USANA said it has requested a correction of the statements regarding Bank of America (BAC.N).

USANA also has never been contacted by the U.S. Federal Bureau of Investigation, the company said, contradicting an assertion it said the article made.

Forbes reported that sources told the magazine’s Web site that the FBI had launched a criminal investigation into the company.

A Forbes spokeswoman had no immediate comment. (Reporting by Robert MacMillan, editing by Tomasz Janowski)

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