MarketAmerica: Pyramid Scheme Claims

January 2020: A magistrate judge granted MarketAmerica’s motion to compel arbitration.

October 2019: Plaintiffs filed an amended complaint bringing similar allegations.

September 2019: This case was transferred from a court in California to one in North Carolina. (Case No. 19-cv-954, M.D.N.C.)

March 2019: A class-action lawsuit was filed against multilevel marketing company MarketAmerica, its founder, nineteen top level executives, and twenty-seven top distributors alleging that the company operates an illegal pyramid scheme in which it rewards participants for recruiting others to join. The complaint also claims that the company promises that anyone can have financial success following the company’s “two-year blueprint” when, according to plaintiffs, more than 90% of its distributors lose money. (Zou et al v. Market America, Inc. et al, Case No. 19-cv-1282, N.D. Cal.)

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