Premier Financial Pyramid Scheme Claims
April 2019: The claims of one of the named plaintiffs (Zong) were voluntarily dismissed without prejudice, the reasons for which have not been disclosed. An amended complaint naming two plaintiffs (Wang and Chen) was filed on the same day.
March 2019: The claims against the CEO and President of National Life Group were voluntarily dismissed, the reasons for which have not been disclosed.
February 2019: A class-action lawsuit was filed against Premier Financial, its founder and CEO, two other executives, and five high-level members, as well as Life Insurance Company of the Southwest and its CEO and President, for allegedly operating a pyramid scheme in which participants make money by recruiting others rather than by actually selling insurance. The complaint claims that the marketing represents that those who join gain personal wealth, success, financial freedom, and the ability to afford luxuries, including expensive custom watches and world class trips, when, according to plaintiffs, only members at the top of the pyramid make any profit. (Wang et al v. Life Insurance Company of the Southwest, Premier Financial Alliance, Inc. et al, Case No. 19-cv-1150, N. D. CA.)
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When a complaint is dismissed without prejudice, an amended version of the complaint can be refiled.