Herbalife Scams Consumers With 'Event System,' Suit Says
Updated: Feb 20, 2018
Global nutrition supplement company Herbalife Ltd. and 44 of its top distributors have been hit with a putative class action in Florida federal court that plaintiffs say has the potential to result in up to $1 billion in damages on allegations the company is using a pyramid scheme to bait consumers with the "promise of riches."
The suit, filed Monday in Miami by eight former Herbalife distributors, focuses on the company's “Circle of Success” event cycle — a series of costly seminars held around the country at which the company's representatives and inner circle of top distributors work to build up enthusiasm among the network's hundreds of thousands of members and to drum into them the message that success depends on attending as many of these events as possible.
“This action seeks recovery from a corrupt organization of individuals and entities who act together, using misrepresentation and deceit, to sell access to a series of emotionally manipulative live events,” the complaint says in its introductory statement.