By Celia Ample, DAILY BUSINESS REVIEW — September 25, 2017
Herbalife’s $200 million settlement with the government didn’t quite squash all of the nutrition-shake company’s fraudulent business practices, a new Miami class action claims.
The lawsuit is the first to go after the Los Angeles-based multilevel marketing company’s top distributors, claiming they misled hundreds of thousands of people into paying for “success training seminars” and other events by saying attendance would ultimately make them rich. Herbalife and nearly four dozen distributors are named as defendants in the racketeering and fraud case.
“These people will get up on stage for a pretty long time, and they’ll talk about how ‘I was in debt and I didn’t think I could go to any other events … but I pulled myself up by my bootstraps and borrowed some money and I attended the next event, and that was the event that changed my life,'” said Miami attorney Etan Mark, who filed the federal lawsuit Sept. 18 with Ohio lawyer Jason Jones.
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