When a business or corporation negligently represents itself to potential investors, it can open itself up to class action lawsuits.
This appears to be happening in California, where supplement company Herbalife is in the process of settling a case that alleges that it is no more than a multilevel marketing company or pyramid scheme that preys on victims to sell products.
The lawsuit was brought on in April 2013 by a woman named Dana Bostick after investor Bill Ackman called the company a fraud and placed a $1 billion short bet on company shares.
After this occurred, many Herbalife distributors claimed losses, with some who joined the lawsuit saying they lost more than $10,000.
Herbalife distributors sell weight loss products, nutritional supplements and personal care products. Some consumer advocates have said that the company preys on the poor by promising large sums of money once they begin to sell the products after investing.
As of last week, lawyers for the plaintiffs and Herbalife said that the sides were in a tentative agreement on the principal terms of a settlement, according to the New York Post.
The class action case seeks coverage for about 1.5 million people who worked with the company as distributors between 2009 and the present (excluding distributors who signed arbitration agreements).
How Can I File a Class Action Lawsuit?
If you have lost money because a business or corporation misrepresented itself, you should speak to our attorneys about potential class action litigation.
Attorney Gary S. Graifman, who specializes in class action lawsuits, can be reached by calling (800) 711-5258 or by filling out the contact form located on this page.
Kantrowitz, Goldhamer & Graifman, P.C. – Class Action Lawyers