Sunrider Pyramid Scheme Claims
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)
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When a complaint is dismissed without prejudice, an amended version of the complaint can be refiled.