Posted 30 September 2020
The U.S. Court of Appeals for the 11th Circuit has ruled that Patricia Rodgers and fellow plaintiffs can proceed with a federal lawsuit that is seeking class-action status against 44 top-level Herbalife distributors. The Court’s ruling overturned lower court rulings that Herbalife could compel arbitration.
Reference: Alpert B. Herbalife faces a fresh legal hurdle. Barron’s, Sept 25, 2020
The Appeals Court order summarized Rodgers’ situation this way:
Patricia Rodgers filled out the paperwork to become an Herbalife member in June 2010. Some six months later, she claims, she traveled over a hundred miles to Orlando, Florida, to attend her first large Herbalife recruiting event, the “January Spectacular.” According to Patricia, the keynote speaker at this event was a highly successful distributor who told the attendees that if they simply put in enough time, money, and effort, then they, too, could achieve life-changing financial success. . . . Over the next four years, Patricia and Jeff purportedly attended over fifty Circle of Success events, in which they were continuously assured by Herbalife’s top distributors that success was just around the corner. Patricia and Jeff claim that, in their efforts to achieve their dreams, they moved from Miami to Jacksonville, cashed out a retirement account and a settlement annuity, sold jewelry, and borrowed money from family members. All told, Patricia and Jeff allege that they spent over $100,000 on Herbalife, including $20,000 on Circle of Success events.
Herbalife International, founded in 1980, markets dietary supplements, herbs, weight-management products, and personal care products. MLM Watch has considerable information about the company.
Source: Consumer Health Digest #20-38, September 27, 2020