Last July former top earner Michael Gehart filed a lawsuit against Visalus.

Gehart alleged Visalus was an “illegal pyramid scheme”. He also the claimed the company ran a secret Amazon retail racket, effectively giving Gehart an unfair advantage over other Visalus affiliates.

In early 2017 Visalus took control of the Amazon racket, prompting Gehart to file suit over lost income.

A year and a half later it seems Gehart has reached a settlement with Visalus, following filing of a stipulated dismissal on November 27th.

The stipulated dismissal doesn’t provide any details but is made with prejudice, meaning Gehart can’t refile the lawsuit.

For their part, rather than defend
racketeering and pyramid scheme allegations
, Visalus appear to have decided it’s easier to just pay Gehart off.

Certainly one would assume Gehart’s allegations, especially with respect to the creation of fake retail customer revenue, would trigger a Visalus regulatory investigation.

As of yet however it doesn’t appear to happened. At least not publicly.

At the time of publication a whopping 66% of visitors to the Visalus website originate from Italy. The second largest source is the US, coming in at just 4%.

A visit to Amazon confirms Visalus is actively selling its products on the e-commerce giant’s localized Italian website.

A decision on the November 27th filed stipulated dismissal with prejudice remains pending.

Update 14th December 2018 – 
An order filed on December 13th has dismissed Michael Gerhart’s Amazon racket lawsuit with prejudice.


🤖 Quick Answer

What were the main allegations in Michael Gehart's lawsuit against Visalus?
Michael Gehart, a former top Visalus earner, alleged the company operated as an illegal pyramid scheme and ran a secret Amazon retail operation that provided him unfair competitive advantages over other affiliates. He claimed lost income after Visalus took control of the Amazon retail operations in early 2017.

How was the Visalus lawsuit resolved?
The lawsuit was settled through a stipulated dismissal filed on November 27th. The settlement was made with prejudice, preventing Gehart from refiling. No financial details were disclosed, though the settlement suggests Visalus chose settlement over defending against the racketeering and pyramid scheme allegations.


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