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LifeVantage Lawsuit 2022

In 2018, two plaintiffs filed a class-action lawsuit against LifeVantage Corporation, a direct-selling company that sells wellness products. The plaintiffs alleged that LifeVantage operates a pyramid scheme, which is a type of business model that relies on recruiting new participants to generate profits for existing members.

The plaintiffs argued that LifeVantage’s distributors are drawn into the scheme by false promises of wealth and success. They alleged that LifeVantage misleads distributors about the amount of money they can make and the likelihood of success. They also alleged that LifeVantage makes it difficult for distributors to succeed and that most distributors lose money.

LifeVantage denied the allegations and argued that its business model is legitimate. The company also argued that the plaintiffs failed to meet the requirements for class certification.

In 2022, a federal judge denied class certification in the case. The judge found that the plaintiffs failed to show that there were common issues of fact that could be tried on a class-wide basis. The judge also found that the plaintiffs failed to show that they would fairly and adequately represent the interests of the class.

The plaintiffs appealed the decision, but in December 2022, they voluntarily dismissed the case with prejudice. This means that the case cannot be refiled.

Conclusion:

The LifeVantage lawsuit 2022 was a class-action lawsuit that alleged that the company operates a pyramid scheme. The case was voluntarily dismissed in December 2022.

FAQs:

Q: What is a pyramid scheme?

A: A pyramid scheme is a type of business model that relies on recruiting new participants to generate profits for existing members. Pyramid schemes are illegal in many countries, including the United States.

Q: What were the allegations in the LifeVantage lawsuit?

A: The plaintiffs in the LifeVantage lawsuit alleged that the company operates a pyramid scheme by misleading distributors about the amount of money they can make and the likelihood of success. They also alleged that LifeVantage makes it difficult for distributors to succeed and that most distributors lose money.

Q: What was the outcome of the LifeVantage lawsuit?

A: The federal judge denied class certification in the case, and the plaintiffs voluntarily dismissed the case with prejudice in December 2022.

Q: Can I still join a lawsuit against LifeVantage?

A: No. The LifeVantage lawsuit was voluntarily dismissed with prejudice, which means that it cannot be refiled.

Q: What can I do if I think I was a victim of a pyramid scheme?

A: If you think you were a victim of a pyramid scheme, you should contact your state attorney general’s office or the Federal Trade Commission (FTC). You can also file a complaint with the Better Business Bureau.

Q: What are the warning signs of a pyramid scheme?

A: Some of the warning signs of a pyramid scheme include:

  • High-pressure sales tactics
  • Promises of easy money or guaranteed success
  • Requirements to recruit new members
  • Difficulty selling products to retail customers
  • High startup costs
  • Complex compensation plans

If you see any of these warning signs, you should be wary of the business opportunity.

References:

  • Smith v. LifeVantage Corp., 2:18-cv-621 | Casetext Search + Citator: https://casetext.com/case/smith-v-lifevantage-corp-4
  • Winston Defeats Class Certification for LifeVantage Corporation: https://www.winston.com/en/insights-news/winston-defeats-class-certification-for-lifevantage-corporation
  • LifeVantage Pyramid Scheme Claims – Truth in Advertising: https://truthinadvertising.org/class-action/lifevantage-pyramid-scheme-claims/

 

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