LifeVantage Pyramid Scheme Claims
December 2019: In ruling on LifeVantage’s motion to dismiss the lawsuit, a federal judge allowed the pyramid scheme claims to move forward concluding that plaintiffs alleged enough plausible facts to state a claim. However, the judge dismissed several other claims, including ones regarding the alleged sale of unlicensed securities, antitrust violations, fraud on the U.S. Patent Office, and unjust enrichment. To read the full decision, click here. Later in the month, plaintiffs filed an amended complaint.
September 2018: Plaintiffs filed an amended complaint adding allegations that the company makes illegal health claims.
August 2018: The case was transferred to a court in Utah. (Case No. 18-cv-621, D. Utah.)
January 2018: A class-action lawsuit was filed against LifeVantage (a multi-level marketing company that sells dietary supplements), its CEO, and two other top-level executives for allegedly operating an illegal pyramid scheme in which individuals only make money by recruiting others to join. According to the complaint, distributors make little to no money from selling products and a vast majority of distributors lose money. (Smith et al v. LifeVantage Corp. et al, Case No. 18-cv-135, D. Conn.)
For more information about other class-action lawsuits bringing pyramid scheme allegations and TINA.org’s coverage of the issue, click here.