A class action lawsuit is filed against Herbalife in Miami. It accuses the company of using a pyramid scheme. The goal is attracting consumers by promising them that ‘’they will become richer.’’ The plaintiffs who filed the lawsuit are eight former distributors.
Etan Mark, Donald J. Hayden and Lara O’Donnell Grillo of Mark Migdal & Hayden and Jason Jones are representing the plaintiffs.
The consumer fraud lawsuit refers to the company’s events, known as ‘’Circle of Success.’’ The event takes place in the U.S. and it comprises of seminars, which are quite expensive. The suit claims the ‘’Circle of Success’’ is simply an ‘’effective’’ method that Herbalife representatives and top distributors practice. They take this step in order to make a lot of members of the network think they will achieve success great success in their life.
They take this step in order to make a lot of members of the network think they will achieve success great success in their life if they participate in these events. In addition to that, the suit mentions that Herbalife organizes these events on a regular basis. In other words, they consist of series of seminars, like Success Training Seminars, etc.
Details concerning Herbalife lawsuit
It’s also worth to note that those people who show interest in Herbalife’s events, have to travel to various places. They have to pay for the tickets (from $30 to $200). Furthermore, Herbalife distributors may convince them to spend a significant sum of money for purchasing the company’s products. They put into practice various tools, like granting participants with VIP status, etc.
Thus, with the help of such fraudulent tactics, the defendants succeeded in trapping a large number of people. As a consequence, they had to spend a considerable sum of money to take part in these events. The reason is that participants believed that through these events, they will increase their financial means and become more successful. However, the complaint says defendants knew that this scheme is deceitful, which means that participants will gain nothing.
The reason is that participants believed that through these events, they will increase their financial means and become more successful. However, the complaint says defendants knew that this scheme is deceitful, which means that participants will gain nothing.
The suit refers to the violation of the following laws by the defendants: Influenced and Corrupt Organizations (RICO) Act and the Florida Deceptive and Unfair Trade Practices Act.
Additionally, the lawsuit refers to wire fraud violations as well. That’s to say, the defendants’ actions have the same goal and focus on the same victims, so, the results are also similar. In this way, Herbalife coffers and its top distributors made a lot of money at the expense of their victims.
What the lawsuit seeks
The lawsuit filed against Herbalife seeks the following: the certification a class which involves any person, who bought tickets to participate in at least two events, known as ‘’Circle of Success’’ starting from 2009 to the current ‘’in pursuit Herbalife’s business opportunity.’’ Moreover, the suit aims to include many other plaintiffs, who appeared in this situation. The plaintiffs refer to their losses, which are up to $100,000.
Here is the list of defendants: Los Angeles-based Herbalife Ltd and its subsidiaries (Herbalife International Inc. and Herbalife International of America Inc). These also include top distributors and the Herbalife’s President’s team.