Health Food Distributor to Settle Suits

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. In addition, the company will set up a fund of $1.2 million to $1.5 million to cover the 10% “restocking charge” it charged former distributors who sought to return their merchandise. Shares rose 87.5 cents to close at $11.375 on Nasdaq.