The dream was to become rich with California-based multi-level marketing company Herbalife. One couple dove all the way into the company, attending its “Circle of Success” events, bringing in recruits, meeting quotas on Herbalife purchases and setting up a store near their Florida home.
Instead of watching the money roll in, the couple watched more than $100,000 roll out. Now they have joined others who have filed lawsuits against the California company that sells products through distributors who recruit more people to be distributors.
According to a recent news report, it is possible that a class action suit will be launched with more than 100,000 plaintiffs and damages that could reach $1 billion.
The Florida couple said they “did everything they told us to do. We attended every event. We traveled and we spent money.” But their golden dreams never became reality.
Los Angeles-based Herbalife had net sales of $4.4 billion last year, but has a history of controversy and litigation. A spokesperson for the firm declined to comment about the couple’s lawsuit, but Herbalife is trying to get their legal claim moved from Florida to California.
In court documents, the company has argued that plaintiffs have detailed “how they were misled by these alleged misrepresentations.” That failure should be “fatal” to the claims against Herbalife, they state.
Two years ago, Herbalife agreed to pay $200 million to settle a Federal Trade Commission case focused on the company’s business model. The FTC argued that the business is based on distributor recruitment rather than selling its skin care products, protein shakes and vitamins.
To protect yourself and your interests in matters involving breach of contract or other disputes with businesses, contact a law firm experienced in business litigation.