Public Prosecutors in Acre filed a civil lawsuit against TelexFree in the 2nd Civil Court of Rio Branco, alleging the company operates as a Ponzi scheme. Judge Thais Borges, overseeing the case, published a mandatory consumer-awareness notice last Monday. This notice established a twenty-day period for consumers to respond to the allegations.

TelexFree has presented its defense to the court. Judge Borges is now hearing from the Public Prosecutors. She will then evaluate whether additional evidence is necessary. If further evidence is required, she will request its production; otherwise, a judgment can be rendered. The twenty-day response period for consumers is expected to conclude around September 21st, after which the case will advance.

TelexFree has consistently attempted to lift the injunction against its operations. The company has presented no fewer than thirteen separate defenses in various Brazilian courts, with each one rejected. Previously, TelexFree's lawyers claimed the company would lack funds to pay existing investors if new sign-ups were prohibited for even a few more days.

Brazilian TelexFree affiliates are urging their downlines to create new American TelexFree accounts. These affiliates are using YouTube videos to encourage continued investment in the company.

Last week, a UK address quietly appeared on the Brazilian Portuguese language portal of the TelexFree website. The company has made no official announcement explaining why this address appeared. Prior to this, TelexFree had no known public executive presence in the United Kingdom. Founders James Merril and Carlos Wanzeler currently remain in the United States.