TelexFree abandoned its special appeal to the Acre Civil Court last Monday, May 19th. The company had sought to overturn an injunction that bars it from paying existing investors or recruiting new participants. This withdrawal came hours before the scheduled hearing.

The move followed the company's loss of an interlocutory appeal earlier the same week. Legal observers questioned the logic of filing a subsequent appeal on similar grounds within the same court.

TelexFree's appeal targeted a May 12th decision that upheld the initial injunction. The company withdrew its request for a hearing on May 19th.

A court spokesperson later confirmed TelexFree's lawyers filed the withdrawal request. They stated the appeal's merits had already been dismissed by the 2nd Civil Chamber, making their new request moot. The delay in this realization, filing another appeal with "we're not a Ponzi scheme" arguments a week after a similar loss, remains unexplained.

When questioned by media outlets regarding the withdrawal, TelexFree lawyer Roberto Duarte stated he "does not talk about the company."

TelexFree owner Carlos Costa announced earlier in the week his intention to submit a new petition to Brazilian courts. The specific court for this petition was not named. Costa claims using a matrix-based model, adapted from the current compensation plan, would demonstrate TelexFree is not a Ponzi scheme.

Under this proposed matrix model, affiliates would buy positions and receive a 2% monthly return from each position beneath them. This differs from the current system, which pays affiliates $20 weekly per invested position.

Legal experts suggest such a petition would likely need to go before the Superior Court. The timing of Costa's announcement, made late last week before the aborted May 19th hearing, leaves the filing of this new petition uncertain.