Herbalife distributors claim in $1B suit events were a sham - StarTribune.com

MIAMI — Patricia and Jeff Rodgers figured they did everything right to get rich beyond their wildest dreams selling Herbalife health and personal care products. They attended all of the "Circle of Success" events, brought in new recruits, met their quotas on buying Herbalife goods to sell and even set up a storefront shop.


But they didn't get rich. Instead, Patricia Rodgers estimates the couple lost over $100,000, including about $20,000 spent on attending Herbalife events. Now, the couple and others are suing the multi-level marketing company that sells its products through a network of distributors who recruit more distributors. The potential class-action case could involve more than 100,000 plaintiffs and might mean as much as $1 billion in damages.


"We did everything they told us to do. We attended every event. We traveled and we spent money. And we didn't get successful like they said we would," Rodgers said in an interview at the couple's home in Hallandale Beach, Florida. "You get involved in it, it's almost like a cult mentality."....

"I took what money I had. I followed a dream I was sold. It was addictive. It was almost like you got hypnotized and you were in some kind of trance," she said. "Then you realize, man, I really got duped."
https://www.valuewalk.com/2017/09/he...ion-complaint/

Herbalife will either distance itself from those distributors or take over their defense. So they’ll either be condemning their conduct or endorsing it. Other high level distributors will have to worry about whether they will be added to the lawsuit.


The other big difference between this and Bostick is the new complaint alleges a RICO conspiracy – a corrupt enterprise consisting of the company and many top distributors – and it alleges that their sales-event methods violate the FTC order as well as other fraud statutes.