Tag Archive for MLM Lawsuits

Tami Longaberger Battles CVSL Over Exit

 
Tami Longaberger’s departure from the basket-making company that her father founded has turned into a heated battle between her and CVSL, parent of the Longaberger Co.
Longaberger said CVSL failed to pay sales and use taxes and drastically cut her pay, while CVSL charged Longaberger with misconduct, according to a filing with the U.S. Securities and Exchange Commission.
The two sides also can’t agree on whether Longaberger, who left the company in early May, was fired or resigned.
Longaberger says in a resignation letter dated April 28 that she was resigning due to three reasons:

CVSL reduced her salary of $850,000 per year by $600,000 during a four-month “deferral period” that was never made up.
CVSL reduced her responsibilities and put another executive in charge at the Longaberger Co.
CVSL caused the Longaberger Co. to fail to pay sales and

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Arbonne Sued By Customer for Causing Liver Failure

 
Arbonne International is being sued by a woman in Indiana who claims in a lawsuit that the company’s products caused her acute kidney failure.
In a complaint filed in the Allen County Superior Court on May 13, Vicki Swanson says she began using Arbonne’s “30-Day Feeling Fit Kit” in March 2013. The kit consists of protein shakes, a “Daily Fiber Boost,” “Fit Chews,” “Energy Fizz Sticks” and an herbal detox tea.
According to the complaint, Arbonne claimed in its marketing material that using the kit would “take the guesswork out of getting fit” and “give you the right combination of essential nutrients to set you on the road to success”.
But Swanson says six weeks after she began using the product as directed, she started to suffer from lethargy and jaundice, and was admitted to

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Gano Excel Loses Lawsuit Against Colombian Progal BT

 
Gano Excel opposed the use of the Ganogen brand by Progal BT with the Superintendent of Industry and Commerce (SIC) in Columbia, to protect their brand Gano Café.
Both companies make use of the medicinal fungus Ganoderma Lucidum, found in the highland rainforests of Asia and known for its therapeutic benefits, in their portfolio of its products and have been engaged in a lawsuit to defend their respective brands.
The debate began when SIC approved Progal’s application under international class 5 for nutritional supplements and products made of flour under Class 30.
Malaysian origin company Gano Excel opposed the application and appealed the SIC’s decision.
Gano Excel argued that its brand was already registered in 28 countries and the word Gano was also being used by it for its Gano Café brand, hence giving it priority. Additionally, as

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LEOCoin Founders Linked to Pyramid Scheme in Pakistan

 
The latest alternative currency hype launch, LEOCoin, has received quite a bit of attention, following a series of outlandish claims. The developer team behind LEOCoin, in a recent CNBC article, claimed that several thousand merchants were willing to accept the digital currency.

“The company therefore claims it has 131,176 registered businesses ready to use LEOCoin, potentially making it the “second largest digital currency” in the world.”

Several media outlets have requested the founders of LEOCoin to provide some evidence to back up the claims made in that particular CNBC article. However, no commentary has been so far by LEOCoin representatives. As of today, nobody seems to have any idea as to who the 131,175 merchants really are. LEOCoin’s developers, Dan Anderson and Atif Kamran, have a somewhat checkered past.
In 2012, Anderson and Kamran were warned by

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Mary Kay Goes After Web Giant RetailMeNot

 
RetailMeNot has prepared a statement claiming it believes to be in compliance with the law, but that the company is prepared to fight back in the suit.

“RetailMeNot, Inc. takes concerns related to third party intellectual property very seriously,” the prepared statement said. “RetailMeNot, Inc. continues to believe that it operates in compliance with law and in the best interests of consumers and its retail partners by aggregating information to help shoppers save money using its websites and mobile apps. 

“RetailMeNot, Inc. believes the allegations in this lawsuit are without merit and intends to vigorously contest this matter.”
Original Post: Cosmetics retailer Mary Kay has filed a lawsuit in federal court against digital coupon giant RetailMeNot, claiming the company is soliciting coupons for the cosmetic company without its consent.
Mary Kay says in the suit, filed on Friday

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Organo Gold Lawsuit: Coffee Contains A Mushroom With Dangerous Blood-Thinning Properties

 
Organo Gold coffee contains a mushroom with dangerous blood-thinning properties unknown to consumers, an USA class claims in court.
Lead plaintiff Marlin Johnson says he consumed one cup of Organo Gold coffee a day for two weeks in March 2013, “unaware of the product’s dangerous side effects.”
Though enticed by Organo’s “representation of the purported health benefits derived from Ganoderma Lucidum,” Johnson says he has since learned that “Ganoderma Lucidum is a natural blood thinner that prevents a person’s blood from clotting properly and causes intestinal bleeding and platelet dysfunction.”
“The packaging and/or labeling of Organo Gold products do not contain warnings about these dangerous side effects,” according to the March 19 complaint Johnson filed in New Castle County Superior Court. Also known as Reishi, Johnson says Ganoderma Lucidum “is a bitter hard mushroom commonly

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Unicity Thailand Convention 2015 Attracts 50,000 Visitors

 
Allthough Unicity is some what under the radar in the USA and Europe, in Thailand there are record breaking numbers, I have not seen much MLM companies able to break 50,000 attendees on a convention.
According to the Unicity website:
“Headquartered in Orem, Utah, USA and driven by more than 100 years of enterprise, Unicity empowers its employees, distributors, and customers to achieve their aspirations.
Unicity formed more than ten years ago with the merger of two companies: Rexall Showcase International and Enrich International.
Rexall Showcase International was the direct marketing division of Rexall—a well-known, highly trusted company whose roots go back to the early 1900s. In the late 1980s, Rexall Showcase became a direct marketing organization which was eventually acquired by Royal Numico in 2000.
Enrich International was a multi-level marketing company established in 1972 and was the first company to successfully encapsulate and market herbal dietary supplements on a commercial basis. Enrich International was sold to Royal Numico in 1999, and merged with Rexall Showcase in 2001 to become Unicity Network.

Unicity Network was purchased by internal management in 2003 and was renamed Unicity International, Inc. Today, Unicity is a networking marketing company with a strong presence in more than 30 countries around the

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Law Firm Investigating Potential Claims On Behalf of Medifast, Inc. Stockholders

 
Kirby McInerney LLP is investigating potential claims against the Board of Directors of Medifast, Inc. (“Medifast” or the “Company”) MED, -0.36% concerning the improper compensation of the Company’s executives.
Medifast’s key executive compensation increased drastically from approximately $2.12 million in 2012 to approximately $12.11 million in 2013. This is an especially significant increase given the fact that key executive compensation was under $2 million for each year from 2009 to 2011. While the key executive compensation has increased dramatically, there has not been any significant increase in the Company’s stock price.
If you are a Medifast stockholder and wish to obtain additional information, please contact J. Brandon Walker, Esq. by email at bwalker@kmllp.com, or telephone at (212) 699-1145, Melissa Fortunato, Esq. by email at mfortunato@kmllp.com, or telephone at (212) 699-1141, or toll free at (888) 529-4787, or by filling out this contact form. There is no cost or obligation to you.
Kirby McInerney LLP is a New York-based law firm concentrating in securities, whistleblower, antitrust and consumer litigation.

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Lindsey Duncan, CEO Genesis Today Fined With $9 Million

 
Lindsey Duncan and the companies he controlled have agreed to settle Federal Trade Commission charges that they deceptively touted the supposed weight-loss benefits of green coffee bean extract through a campaign that included appearances on The Dr. Oz Show, The View, and other television programs.
Under the FTC settlement, the defendants are barred from making deceptive claims about the health benefits or efficacy of any dietary supplement or drug product, and will pay $9 million for consumer redress.
“Lindsey Duncan and his companies made millions by falsely claiming that green coffee bean supplements cause significant and rapid weight loss,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “This case shows that the Federal Trade Commission will continue to fight deceptive marketers’ attempts to prey on consumers trying to improve their health.”
The FTC charged that Duncan and his companies, Pure Health LLC and Genesis Today, Inc., deceptively claimed that the supplement could cause consumers to lose 17 pounds and 16 percent of their body fat in just 12 weeks without diet or exercise, and that the claim was backed up by a clinical study. In September 2014, the FTC settled charges against the company that sponsored the severely flawed study

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Stream Proceeds With Mobile Launch In The Face Of Solavei’s Attempt To Halt Plans

 
Stream has proceeded with this weekend’s nationwide launch of Mobile Services at its Unleashed event in Las Vegas, in the face of grossly misrepresented and baseless legal allegations by Solavei made public late Friday afternoon.
“We’re thrilled to celebrate the nationwide launch of Mobile Services by Stream with our enthusiastic and committed Associates at Unleashed in Las Vegas.
 We started in 2005 with a revolutionary concept, turning on the lights with our network of friends and family, and now our Mobile Services will bring even more people together in markets we haven’t been able to touch before,” said Mark “Bouncer” Schiro, Stream president and CEO.
Stream’s Mobile Services branch offers dependable cellular services within the continental United States. Available service packages provide reliable coverage, fast speeds and the latest technology—all without commitments or contracts. The program’s “Mobile Your Way” structure further allows consumers to take charge of their mobile usage and customize phone and data plans that fit their individual needs.
With the nationwide launch of Mobile Services and Stream’s existing suite of Protective Services, the company and its Associates now have no geographic restrictions within the continental U.S., creating endless opportunities for growth.
Schiro also dismissed the representations appearing in Solavei’s January 23rd press release concerning their judicial proceedings. “The reality is that, for whatever reasons, Solavei showed up

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