This is an archived article that was published on sltrib.com in 2012, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Nu Skin Enterprises shares took a beating Tuesday after a research firm alleged the Utah company was running a multilevel marketing businesses in China, despite laws that prohibit it in many parts of the country.
A report by Citron Research pointed to "widespread violation of Chinese law" by Nu Skin, which markets nutritional and anti-aging products through independent distributors. Those distributors earn commissions through networks of others who are recruited into the company, a form of commerce is prohibited in some areas of China.
The Provo company's shares fell 9.2 percent to finish down $4.50 at $44.36 a share on the New York Stock Exchange.
In a statement, Nu Skin said it was "confident that our China operations are in compliance with applicable regulations as interpreted and enforced by the government of China."