Medifast Schedules Conference Call for Wednesday, February 18, 2009 at 4:15 pm ET
OWINGS MILLS, Md., Feb. 17 /PRNewswire-FirstCall/ -- Medifast, Inc. (NYSE: MED), a leading clinically-proven portion controlled weight-loss program announced today that it will hold an investor call at the close of the market on Wednesday, February 18, 2009 at 4:15 PM EST. The call will address false claims made in a 'report' by convicted felon Barry Minkow and the Fraud Discovery Institute.
'This report is false and misleading. Medifast does not customarily respond to spurious claims, however, in this case we felt it was warranted to protect our shareholders and health coaches. We believe most everything he says to be false and made for his own personal gain. He is a liar and can't be trusted,' said Michael S. McDevitt, CEO of Medifast, Inc.
'Our business practices comply with generally accepted industry standards of the Direct Selling Association,' continued Mr. McDevitt. 'Our products are safe, pure and of the highest quality and can significantly improve the quality of life of our customers that are dedicated to achieving a healthy body weight. Of Medifast's 2008 revenues less than one percent (1%) is related to recruiting and none of that revenue is paid out to coaches as part of their compensation. This fact alone completely refutes Mr. Minkow's major premise that our growth is based on recruiting and not increased product sales. The Take Shape For Life business model pays our coaches for increased product sales, which are made in support of helping our clients achieve optimal health.'
Mr. Minkow is a convicted felon having served a seven-year prison sentence - from January 1988 to April 1995 - for 57 counts of fraud and conspiracy. His company, The Fraud Discovery Institute and its website states that '...Barry Minkow almost always holds a position in securities reported on, or profiled by, FDI websites. Neither FDI nor Mr. Minkow will report when a position is initiated or covered.'
Mr. McDevitt added, 'Our distinguished board of directors and executive team is populated with members of the U.S. military, the clergy, academia, and the legal profession. We are dedicated to operating our business with the highest ethical standards that the members of our board demand. In that regard, we are dedicated to protecting the Medifast brand and our products against unsubstantiated allegations. Mr. Minkow has in previous instances issued similar reports on other direct-selling organizations in order to generate downward pressure in companies in which he had an economic interest.'
Take Shape For Life, Inc.