Arbonne

October 2017: Even though the case was stayed, a federal judge allowed plaintiffs to file an amended complaint making similar allegations.

July 2017: This case was transferred to federal court. (Case No. 17-cv-1214, C. D. CA.) Later in July, the case was stayed pending the determination of whether the claims need to be resolved in arbitration.

May 2017: A class-action lawsuit was filed against Arbonne International, a multi-level marketing company that sells health and beauty products, as well as five top Arbonne consultants, alleging that:

  • The company is a pyramid scheme in which consultants make money by recruiting others to join and
  • The company and its consultants deceptively represent that people who join Arbonne can make a significant income when, according to plaintiffs, over 86% of consultants lose money and “only the tiniest minority of [c]onsultants” achieve the represented financial success.

(Dagnall et al v. Arbonne International, LLC et al, Case No. 30-2017-00922926, Superior Court of the State of California – Orange County)

For more information about other class-action lawsuits regarding pyramid schemes and TINA.org’s coverage of the topic, click here.

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