Herbalife
TINA.org investigated Herbalife, a California-based multilevel marketing company that sells nutritional supplements, and found that the company has used unsubstantiated disease-treatment claims to market its products, as well as atypical…
November 2015: A judge dismissed the complaint because plaintiffs failed to adequately allege material misrepresentations or scienter (intent or knowledge of wrongdoing). The dismissal was When a complaint is dismissed with prejudice, it cannot be refiled. because plaintiffs had multiple opportunities to correct shortcomings in complaints.
August 2015: Plaintiffs filed an amended complaint.
July 2015: A federal judge dismissed the lawsuit finding, among other things, that the plaintiffs did not adequately plead that the company knew statements were false. The plaintiffs have until August 27, 2015, to file an amended complaint. (In Re Herbalife, Ltd. Securities Litigation, Case No. 14-cv-2850, C. D. CA.)
April 2014: Shareholders of Herbalife filed a class-action lawsuit against the company for allegedly making false and misleading statements regarding its business, operational, and compliance policies, in violation of federal securities laws. According to the complaint, the company operates a pyramid scheme where people make money by recruiting distributors rather than by selling products and engages in deceptive trade practices by pressuring members to purchase more products to resell as a “distributor.” The complaint also alleges that the company’s financial statements were false and misleading. (Awad et al v. Herbalife Ltd., Johnson, Walsh, DeSimone, and Goudis, Case No. 14-cv-02850, C. D. CA.).
For more information about other class-action lawsuits against Herbalife and TINA.org’s coverage of the company, click here.
For more information about pyramid schemes and TINA.org’s coverage of the issue, click here.
TINA.org investigated Herbalife, a California-based multilevel marketing company that sells nutritional supplements, and found that the company has used unsubstantiated disease-treatment claims to market its products, as well as atypical…
In September 2017, a false advertising class-action lawsuit was filed against Herbalife (a multi-level marketing company) and many of its top-earning distributors for, among other things, allegedly running “a predatory…
May 2015: After a final fairness hearing, a federal judge granted final approval of the proposed settlement of this class-action lawsuit. March 2015: TINA.org filed an (Latin for “friend of…
TINA.org investigation reveals MLM supplements recommended for everything from cancer to Ebola.
Company struggled under court-mandated customer-focused business structure.
Complaint for Permanent Injunction and Other Equitable Relief Stipulation to Entry of Order For Permanent Injunction and Monetary Judgement
Bringing an end to one of the most high-profile alleged pyramid scheme cases since Amway, Herbalife agreed to a $200 million settlement with the FTC that requires it to revamp…
MADISON, CONN. June 7, 2016–The Direct Selling Association (DSA), the national trade association for multi-level marketing companies, honors 22 companies that purportedly “serve as examples of direct selling at its…