Summary of Action

A class-action lawsuit was filed against Herbalife in 2013 alleging that the company deceptively markets and operates an illegal pyramid scheme, which charges inappropriate shipping and handling fees in order to bolster illegal profits.

In October 2014, the parties reached a proposed settlement agreement that would essentially ban the estimated 1.3 million class members from ever suing Herbalife again, while only binding the company for a three-year period to maintain a status quo that will not require it to change its deceptive marketing practices, refrain from operating its pyramid scheme, or eliminate its fraudulent billing practices.  In addition, while most class members will receive a de minimis amount of money (between $3 and $20) compared to their loss, class counsel will receive $5.25 million with leftovers going toward a cy pres award instead of fully compensating class members.

For these reasons, TINA.org filed a brief in March 2015 as amicus curiae opposing the proposed settlement agreement as unfair to consumers.  However, on May 14, 2015, the Court approved the settlement over TINA.org’s and others’ objections.

For more information about TINA.org’s position or to read the full brief, use the menu.