Herbalife sued by distributors

Posted 05 September 2018

Eight former Herbalife distributors have filed a class action complaint against Los Angeles-based Herbalife in the U.S. Southern District Court in Florida. The complaint states:

  • The company uses misrepresentation to sell access to emotionally manipulative events that have 200 to 20,000 attendees. 
  • The events use labels such as “Circle of Success,” as a guaranteed pathway to life-changing financial success with Herbalife’s multi-level marketing business opportunity. 
  • Each of the plaintiffs distributors has spent thousands of dollars attending events, but they received no benefits from doing so contrary to frequent claims by Herbalife that: “If you go to all the events, you qualify for everything – you will get rich.” 
  • The plaintiffs are seeking damages and injunctive relief against “the corrupt organization of individuals and entities who sell, operate and compel participation in the Circle of Success.”

An Associated Press report states that the case might eventually involve more than 100,000 plaintiffs.
[Anderson C. Herbalife distributors claim events were a sham. Boston Globe. Aug. 21, 2018]

In pretrial motions, Herbalife’s attorneys argued that the plaintiffs had signed contracts mandating arbitration of any disputes rather than trial in court. [Pickett A. Herbalife seeks to arbitrate potential $1 billion class action. Courthouse News Service. Aug. 21, 2018]

Source: Consumer Health Digest #18-35, September 2, 2018

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