July 31, 2015 A Federal District Court Judge in the Central District of California this week threw out a lawsuit against Herbalife, Ltd. (“Herbalife”), which alleged that Herbalife had violated federal securities laws by misrepresenting various aspects of its business operations. This is the second amended complaint that has been dismissed by the Judge in […]
Case Dismissed against Multi-Level Marketing Company Herbalife Read More »
June 17, 2015 This week, the Federal Trade Commission (“FTC”) announced that it will begin mailing out over 50,000 checks that will total approximately $1.9 million as redress for consumers victimized by a Ponzi scheme operated by BurnLounge, Inc. (“BurnLounge”). The announcement comes nearly a year after the FTC prevailed on an appeal that ultimately
FTC To Issue Refund Checks to Victims of Alleged Pyramid Scheme Read More »
March 23, 2015 Last week, Judge Dale S. Fischer dismissed a federal class action lawsuit against Herbalife, Ltd. (“Herbalife”) and three of its corporate officers, who were accused by Herbalife shareholders of operating the company as an illegal pyramid scheme. The lawsuit alleged that Herbalife artificially inflated its stock price by misrepresenting that the company
Herbalife Class Action Lawsuit, Pyramid Scheme Allegations Dismissed Read More »
On June 2, 2014, the United States Court of Appeals for the Ninth Circuit upheld a permanent injunction awarded to the Federal Trade Commission (“FTC”) against multi-level marketer BurnLounge, Inc. The injunction, issued by the district court in 2012, barred BournLounge from continuing its business operations. The Court upheld the district court’s ruling that BurnLounge
Federal Court of Appeals Upholds Injunction Against Multi-Level Marketing Business Read More »
Yesterday, Fortune Hi-Tec Marketing, Inc. (FHTM) and its principals (which were individually named in the complaint), settled a suit brought by the Federal Trade Commission (FTC) alleging that the company had engaged in an international pyramid scheme for the last four (4) years. The FTC’s complaint alleged that FHTM falsely represented to consumers that they
Multi-Level Marketing Firm Settles Pyramid Scheme Allegations with the FTC Read More »
The distinction between multi-level marketing programs vs. pyramid schemes may seem slight to the casual observer, but the subtle difference between the two will determine if your company is engaging in an illegal activity or not. Pyramid Schemes vs. Multi-Level Marketing Programs Most pyramid schemes require that participants pay money in return for two things:
Multi-Level Marketing Programs Vs. Pyramid Schemes Read More »
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