Stream, a leading direct selling company and provider of essential services, on October 16 realized a key appellate victory in its ongoing Federal class action litigation before the U.S. Fifth Circuit Court of Appeals in New Orleans.
Arising out of oral arguments held during February 2015, the Fifth Circuit panel voted to decertify a purported class of plaintiffs whose two named representatives alleged violations of the Racketeer Influenced and Corrupt Organizations Act. This appellate ruling reverses a prior January 2014 order of the U.S. District Court for the Southern District of Texas that erroneously certified a class of plaintiffs consisting of current and former Stream Independent Associates.
The Federal class action lawsuit in question alleges that Stream operates a pyramid scheme in violation of Federal racketeering laws. Stream has vehemently denied these charges and
Tag Archive for MLM Lawsuits
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ForeverGreen vs. Pruvit – Ketopia (Ketone) Lawsuit
by Ted Nuyten • • 0 Comments
Ron Williams, CEO Foreever Green / FG Xpress has send out below letter.
ForeverGreen was introduced to the ketone technology over two years ago. The introduction was made by Axcess Global, which is the licensor of the university created technology and the patented ketone method for weight management. Excited about the opportunity and excited about the good the technology can be to the world, ForeverGreen worked with Axcess Global to bring ketone products to the market.
As a crowning moment in this process ForeverGreen finalized fully authorized and signed contracts with Axcess Global, the university, and the creator of the weight management patent. These signed agreements provide ForeverGreen the rights and responsibilities to provide weight management and ketone products to the world. This is a privilege ForeverGreen holds at great value. While ForeverGreen
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Kevin Thompson – Lessons Learned From The FTC vs Vemma Law Suit
by Ted Nuyten • • 0 Comments
Kevin Thompson, the MLM attrorney, is part of the Vemma’s Legal team, in this write up he shares his knowlege. Stuff to read for corporate executives as for Network Marketing professionals in the USA and those entering the USA market.
This was very interesting to read:
In fact, our guess is that most companies will stand pat and continue to take one of two ignorant approaches. The first is the “that won’t happen to us” approach. The proverbial logic behind this approach goes something like this: the FTC doesn’t pursue many companies; with each passing day, more and more companies invade the industry’s space; therefore, our company won’t be THE COMPANY that serves as the government’s sacrificial lamb.
Kevin Thompson:
“This is Part Two of our series on the Vemma ruling. In Part One of
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Direct Selling Defense Fund Announced
by Ted Nuyten • • 0 Comments
The Direct Selling Defense Fund is trust account by Coppersmith Brockelman and will be used for the legal defense of Vemma vs the FTC.
Cost for legal defense is estimated around $2 million….
Most large law firms in the United States bill between $200 and $1,000 per hour for their lawyers’ time.
The danger for other Network marketing companies is the nature of the attack on Vemma. Vemma have been hit hard on “auto-ship” and “auto-ship commission qualification” a policy that has products automatically shipped to a distributor unless he or she opts out in advance.
Secondly the FTC attacks the binary compensation plan in a recent hearing, there fore the Direct Selling Industry is under attack.
Bob Proctor recently released this video:
If you want to support the industry defense this are the wire
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Recall: The FDA did NOT Send Recently A Warning Letter To DoTerra And Young Living
by Ted Nuyten • • 0 Comments
Yesterday one of our editors posted the news both DoTerra as Young Living Essential Oils had received a FDA warning letter.
Both companies have indeed received such a letter however one year ago, in september 2014. Our editor did not check the source. We apologize for this outdated information.
Both companies have worked well with their compliance teams, and have received no further warnings from the FDA.
The Food and Drug Administration (FDA or USFDA) is a federal agency of the United States Department of Health and Human Services, one of the United States federal executive departments. The FDA is responsible for protecting and promoting public health.
The Warning Letter is the FDA’s principal means of notifying regulated industry of violations and achieving prompt voluntary correction.
The United States Food and Drug Administration (FDA) defines
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DSA President Responds To Seeking Alpha Post
by Ramya Chandrasekaran • • 0 Comments
American Direct Selling Association (DSA) President Joseph Mariano responds to a post by Bill Keep on stock market insights and analysis site Seeking Alpha.
As a platform for investment research, the opinions presented via Seeking Alpha inform countless decisions, large and small, taken by corporations, government and the public. It is therefore important that contributors act in good faith to get the facts right.
I am concerned that Bill Keep, one of your frequent contributors, has chosen to co-opt Seeking Alpha into a mouthpiece for attacks against direct selling, one of the oldest ways that Americans choose to work independently, typically on a part-time basis. By showing blatant disregard for the facts about DSA and direct selling with little to no accountability for his mis-statements, Keep diminishes Seeking Alpha’s credibility and jeopardizes the ability
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DSA President Joe Mariano Explains Pyramid Schemes
by Ramya Chandrasekaran • • 0 Comments
In a letter to the New York Times, in response to a column by Joe Nocera titled The Pyramid Scheme Problem, US Direct Selling Association president Joseph Mariano has written this explanation:
To understand what constitutes a pyramid scheme, Joe Nocera (column, Sept. 15) points to a recent United States Court of Appeals decision that correctly concludes that a scheme exists when recruitment of sales people is at the heart of a company’s business. But the column doesn’t mention that there are additional standards offering useful guidance.
In 2004, the Council of State Governments suggested that every state adopt its model legislation that defines and prosecutes against schemes. The model, or similar legislation, was enacted by 18 states and is notable for its specificity.
We have helped prosecute pyramid schemes over many years and work
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Doug Wead: “FTC Declares War On Direct Sales Businesses”
by Ted Nuyten • • 0 Comments
Doug Wead is a presidential historian who served as a senior adviser to the Ron Paul presidential campaign. He is a New York Times best-selling author, philanthropist, and adviser to two presidents, including President George H.W. Bush, with whom he co-authored the book “Man of Integrity.”
On 11 september he published the next article:
“The Arizona direct sales company Vemma was recently hit by the FTC and virtually shut down without a judge, jury, or trial. The income of thousands, including single mothers, housewives, young businessmen, retirees, and disabled veterans has been instantly blocked by the government agency.
Nobody will be paid, no matter what they have sold or what work of a lifetime they have done.
Ominously, among the reasons the FTC gave for its action, are methods that are employed by almost all other
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FTC Answer On Pyramid Definition: “I Have Nothing For You”
by Ted Nuyten • • 0 Comments
New York Times reporter Joe Nocera published the next story under the title “The Pyramid Scheme Problem”:
“I have nothing for you,” said Frank Dorman, a spokesman for the Federal Trade Commission. “Lots of reporters have asked that question. Our final response is, We’re not going to answer it.”
What had I asked that was so sensitive that the F.T.C. wouldn’t respond? I had requested that the agency explain what distinguished an illegal “pyramid scheme” from a legal multilevel marketing company.
What had prompted my question were two recent events. In late August, the F.T.C. had gotten an injunction issued against a multilevel marketing company called Vemma Nutrition, claiming it was in fact a pyramid scheme.
And last week, Fortune magazine published a lengthy story by Roger Parloff about William Ackman’s nearly three-year battle to force
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Vemma Top Earners Might Face Clawbacks
by Ted Nuyten • • 0 Comments
According to an article in the New York Post, Vemma top distributors might face threads of claw backs if the FTC wins the case.
The New York Post:
“A former top distributor for Vemma may have to fork over millions of dollars in earnings after regulators accused the energy drink maker of running a pyramid scheme that preyed on college students, legal experts told The Post.
Anthony Powell, a top distributor who left Vemma two months ago, was singled out in a report filed last week detailing the alleged scheme. He was a major player in the multilevel marketing company, which the Federal Trade Commission temporarily halted late last month pending the outcome of a Sept. 15 court hearing.
The report, from the temporary receiver appointed to oversee the company, found that 42 percent of the