
SEC Sues OnPassive Alleging It’s a Pyramid Scheme
Lawsuit claims company defrauded over 800,000 investors of more than $108 million.
July 2018: An objector filed a Notice of Appeal regarding the final approval of the settlement. The next day, the objector voluntarily dismissed the appeal, the reasons for which have not been disclosed.
June 2018: A federal judge granted final approval of the settlement agreement.
November 2017: A federal judge granted preliminary approval of the settlement agreement. A final fairness hearing is scheduled for June 6, 2018.
May 2017: The parties moved for preliminary approval of a settlement of this action. According to the proposed terms, class members may receive cash refunds of up to 50% of the full retail price of KT Tape products. Class members without proof of purchase may receive a refund for one package while class members with proof of purchase may receive a refund for up to five packages. In addition, the company agreed to:
July 2016: An amended complaint making similar allegations (i.e., that the products are falsely marketed as providing pain relief, faster recovery, and treatment for common injuries) was filed.
October 2015: A class-action lawsuit was filed against KT Health, Inc. for allegedly misleadingly marketing KT Tape products (strips of stretchy fabric with an adhesive backing that can be applied to skin near an injured area). According to the complaint, the company represents that the products treat various sports-related injuries and, when applied to the skin, reduce pain when, according to plaintiffs, the products do not work as advertised and the claims are not supported by scientific evidence. (Vuckovic et al v. KT Health Holdings, Inc. d/b/a KT Health, Inc., KT Holdings, LLC, and KT Health, LLC, Case No. 15-cv-13696, D. Mass.)
Lawsuit claims company defrauded over 800,000 investors of more than $108 million.
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