Updating a blog post we brought you a few weeks ago, Herbalife Ltd. has agreed to pay $15 million to settle claims that it is a “pyramid scheme” that does not allow distributors to make a profit.
Bloomberg reports that the settlement should end a class action lawsuit brought on by a former California distributor who said the company’s business model did not allow her to profit.
In her lawsuit, the woman claimed that the company is a multilevel marketing company or pyramid scheme that preys on victims to sell products. Herbalife sells weight loss products, nutritional supplements and personal care products.
After she filed her lawsuit, several other people who say they lost more than $10,000 investing in the company’s products, joined the woman’s case.
Additionally, it has been reported the U.S. Federal Trade Commission is investigating the company after a hedge-fund manager told investors it “misleads distributors, misrepresents sales figures and sells a commodity product at inflated prices.”
Bloomberg reported that the settlement will cover distributors who joined the company “primarily to pursue a business opportunity and not primarily for personal and/or family consumption of Herbalife products.”
How Can I Obtain Damages through a Class Action Lawsuit?
As this settlement shows, if you have been wronged, misled or lied to by a company for its financial gain, you have legal options.
Class action lawsuits pursue damages for those who have been harmed by the wrongful actions or omissions of an entity. Contact KGG attorney Gary Graifman by calling (800) 711-5258 or using the online contact form on this page if you are interested in pursuing legal action against a company for its misdeeds.
Kantrowitz, Goldhamer & Graifman, P.C. – Class Action Lawyers