Sunrider Pyramid Scheme Claims

October 2017: A federal judge granted in part the defendants’ motion to dismiss finding that plaintiffs failed to meet the heightened pleading standard required for fraud-based claims. The remainder of the motion was denied meaning that other claims will move forward. To learn more about the dismissed and continuing claims, click here. The dismissal was without prejudice.

July 2017: Plaintiffs filed an amended complaint making similar allegations.

June 2017: The case was transferred to federal court. (Wu et al v. Sunrider et al, Case No. 17-cv-4825, C. D. CA.)

May 2017: A class-action lawsuit was filed against Sunrider, a multilevel marketing company that sells herbal products, for allegedly running an illegal pyramid scheme. Specifically, the complaint alleges that participants are rewarded for recruiting others to join instead of the sale of products and “[o]ver 90% of Sunrider Distributors average net losses.” (Wu et al v. Sunrider Corporation dba Sunrider International, Tei-Fu Chen, and Oi-Lin Chen, Case No. BC663303, Los Angeles Superior Court)

For more of TINA.org’s coverage of MLMs and pyramid schemes, click here.

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When a complaint is dismissed without prejudice, an amended version of the complaint can be refiled.

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