Multi-Level Marketing

Published on November 14th, 2017


2017 Pyramid Scheme Lawsuits has seen a marked uptick in federal pyramid scheme complaints against various multi-level marketing (MLM) companies filed in 2017. More than half of the cases involve DSA member companies with three companies, Advocare, Arbonne, and Nerium, ranked as DSA top 20 members based on 2016 net sales in the United States.

For more of’s coverage of lawsuits alleging that MLM companies are pyramid schemes, click here.

For more coverage of MLMs and pyramid schemes, click here.

Case Name
(Court, Case Number)
Date Originally Filed Status
1 Ranieri v. Advocare International
(N. D. TX., 17-cv-691)
Mar. 2017 Pending
2 Yiru v. Worldventures
(N. D. TX., 17-cv-2155**)
May 2017* Motion to compel arbitration pending
3 Dagnall v. Arbonne International
(C. D. CA., 17-cv-1214)
May 2017* Settled
4 Yang v. MarketAmerica
(C. D. CA., 17-cv-4012)
May 2017 Motion to compel arbitration pending
5 Wu v. Sunrider
(C. D. CA., 17-cv-4825)
May 2017* Appeal pending
6 Jia v. Nerium International
(N. D. TX., 17-cv-3057**)
Aug. 2017 Pending
7 Wu v. Jeunesse
(C. D. CA., 17-cv-7475)
Oct. 2017 Voluntarily dismissed
8 Berry v. LuLaRoe
(C. D. CA., 17-cv-2176)
Oct. 2017 Voluntarily dismissed***
9 Haskett v. LuLaRoe
(C. D. CA., 17-cv-2212)
Oct. 2017 Voluntarily dismissed***
10 Guo v. Kyani
(C. D. CA., 17-cv-8257)
Nov. 2017 Motion to compel arbitration pending
11 Atkinson v. LuLaRoe
(C. D. CA., 17-cv-2287)
Nov. 2017 Voluntarily dismissed***
12 Rocke v. LuLaRoe
(C. D. CA., 17-cv-2414)
Nov. 2017 Voluntarily dismissed***

* Originally filed in state court

** Originally filed in California and transferred to Texas

*** The named plaintiffs in the Atkinson, Berry, Haskett, and Rocke cases were added to another class action against LulaRoe (Lemberg v. LuLaRoe) that was amended in January 2018.  The Lemberg amended complaint also added pyramid scheme allegations. In April 2018, the Lemberg case was stayed pending arbitration.

Updated 6-4-18

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Multi-Level Marketing – a way of distributing products or services in which the distributors earn income from their own retail sales and from retail sales made by their direct and indirect recruits.

The Direct Selling Association (DSA) is a national trade association for direct selling companies that primarily use multi-level marketing compensation plans.

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