Herbalife is facing another class-action lawsuit from hundreds of thousands of former distributors who say they were ripped off. The company has agreed to settle the claims for about $15 million. The multilevel marketing company sells weight loss products, nutritional supplements, and personal care products. The company has been plagued by legal cases for years. In 2015, Herbalife settled with a group of distributors for $15 million. In 2016, it settled with the Federal Trade Commission for around $200 million.
The plaintiffs’ attorneys are aiming for a settlement that will award at least $15 million to Herbalife distributors.
The settlement requires the company to change its corporate policies and definition of a distributor. The firm will also have to cover the costs of shipping legitimately returned products. The settlement is also expected to include a product return fund that is available to distributors who file valid claims. The company is expecting to receive about 30 percent of the settlement.
In addition to this settlement, the plaintiffs claim that Herbalife deceived consumers by misrepresenting the income-generating opportunities of its distributors. In addition, the company also agreed to extend its return policy on initial membership shipments. In addition to this, the plaintiffs claim that the Herbalife business model violates the FTC Act. The company’s business model is a pyramid scheme, and distributors are paid for their purchases.
In the recent settlement, Herbalife agreed to pay up to $15 million to Herbalife distributors.
As part of the settlement, Herbalife agreed to extend its return policy on products that are returned after purchase. This settlement is significant because Herbalife has millions of members and net sales of $4 billion. There is a potential for millions more to be recovered if the Herbalife business model fails to meet consumer requirements.
The lawsuit claims that Herbalife deceived consumers about its products and business opportunity. The Herbalife business model also induced people to buy products that they did not need. In addition, distributors were not compensated for the cost of their orders. Herbalife is now settling the lawsuit with the help of a federal judge. If Herbalife wins the case, the court may award the plaintiffs between $15 million and $2.5 million.
The Herbalife class-action lawsuit against the multilevel marketing company is a victory for consumers.
The company settled with its distributors in exchange for $200 million in payments for class members. This settlement also restructures Herbalife from the top to the bottom of the company. As a result, the company will be forced to comply with the law. This settlement will help the consumers who lost money. However, the case is not the only positive for Herbalife.
A Herbalife class action lawsuit is a legal action against Herbalife Ltd. The company is a multilevel marketing company that distributes products worldwide. The distributors also recruit wholesale buyers for the products. The distributors’ compensation plans are based on a profit-sharing agreement. These companies will pay up to $15 million to all of the people who filed the suit. They should also cover the costs of returning the products.
Herbalife has a strict return policy and does not allow customers to return their products.
The company is required to refund any money spent on the product, but distributors who fail to follow the terms of the company’s return policy will not be refunded. In such cases, Herbalife can be forced to pay damages to the distributors who returned the products. The Herbalife class action is expected to cost approximately $1 billion in total.
The lawsuit against Herbalife was filed in November 2015. The FTC had accused the company of deceptive practices and pyramid schemes. Herbalife agreed to pay $17.5 million to the people who joined the Herbalife business and received a check in the mail. They also agreed to reimburse the costs of returned products. However, this is not enough to stop the lawsuit. It may even lead to the closure of Herbalife.