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."