A group of Herbalife distributors have filed a class-action complaint.

What makes this case interesting is it targets the company’s “Cycle of Success” events, which the class plaintiffs allege has resulted in over a billion dollars in Distributor losses.

The Herbalife class-action lawsuit was filed just shy of a year ago on September 18th, 2017.

Named plaintiffs in the lawsuit are Jeff and Patricia Rodgers, Michael and Jennifer Lavigne, Cody Pyle, Jennifer Ribalta and Izaar and Felix Valdez.

The plaintiffs collectively allege they’ve filed their class-action in an attempt to seek

recovery from a corrupt organization of individuals and entities who act together, using misrepresentation and deceit, to sell access to a series of emotionally manipulative live events.

The events at issue are marketed as Cycle of Success, Wheel of Success or Circle of Success.

Herbalife produces its own large-scale events four times a year: a regional $50 “January Spectacular,” two regional $100 “Leadership Development Weekends” in April and October, and a national $120 “Extravaganza” each July.

The other eight months of the year are left to the semi-local $30 – $50 Success Training Seminars.

According to the lawsuit, Herbalife distributors are told

they must “attend every event” if they want to be successful; and that they must “qualify” for special treatment at these events by making large monthly purchases of Herbalife’s products.

Mark Addy, a named defendant, is singled out for having stated at a 2011 Circle of Success event, “If you go to all the events, you qualify for everything – you will get rich.”

Pretty damning stuff, considering the statement was made at an official Herbalife corporate event.

In early January the FTC announced it would be
returning $200 million to 350,000 Herbalife victims
.

Plaintiffs argue that their case is outside of what the FTC settlement covers.

They state that the Circle of Success event system was “untouched” by the FTC action, and remains ‘
the single most effective fraud in the arsenal of Herbalife and its top distributors
‘.

Another interesting claim in the lawsuit is that

none of Herbalife’s top distributors, past or present, including the Individual Defendants, has built a significant income by retailing Herbalife’s products according to Herbalife’s rules.

Defendants have actual knowledge that – despite their incessant misleading claims to the contrary – there is no viable retailing opportunity.

And bear in mind, that claim is made despite the FTC’s “Herbalife is totally a pyramid scheme but we’re not going to use the words pyramid scheme”
2016 settlement
.

Instead of relying on now prohibited chain-recruitment with no retail and impossible income claims, Herbalife’s top affiliates continue to make bank by getting already recruited affiliates to attend Circle of Success events

Other alleged advantages Herbalife’s top distributors fail to disclose to new recruits include

the roll-up of downlines belongin

🤖 Quick Answer

What is the "Circle of Success" event lawsuit against Herbalife?
A class-action complaint filed by multiple Herbalife distributors on September 18, 2017, alleges that the company's "Circle of Success" events caused over one billion dollars in distributor losses through misrepresentation and deceit. Named plaintiffs include Jeff and Patricia Rodgers, Michael and Jennifer Lavigne, Cody Pyle, Jennifer Ribalta, and Izaar and Felix Valdez, seeking recovery from allegedly manipulative practices.

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