Despite representing affiliates who invested in Visalus’ “Founders Equity Incentive Plan” were accepted and qualified for two years, the company recently sough to back-pedal on its representations and agreements.

The dirty move appears to be a direct response to a round of document subpoenas, served on Visalus and a top affiliate by the Colorado Securities Division.

The securities investigation was instigated by a complaint filed by Caprece Byrd, a current Visalus affiliate.

In a separate lawsuit filed approximately two weeks later, Byrd alleges she and over a thousand other Visalus affiliates were lured by Visalus corporate into a fraudulent investment scheme.

In the two weeks between the subpoena serving and Byrd’s lawsuit being filed, Visalus corporate scrambled to organize a shareholder meeting.

At the meeting attendees were told they’d be ‘
getting “legal documents” to “kind of formalize” their status as shareholders
‘.

This despite some of the affiliates on the call having been told for nearly two years prior that they were already qualified as shareholders in Visalus’ Founders Equity Incentive Plan.

On August 31st, three weeks after Byrd’s securities fraud filing, counsel for Visalus sent out an “Amended and Restated Founders Equity Incentive Plan” and “Performance Agreement”.

In order to maintain their previously qualified (and fully paid up) equity shareholder positions, Visalus affiliates were told they had to sign the new documents.

Clauses of note in the new agreement documents, that at no time were previously disclosed to Visalus affiliates who coughed up thousands to be qualified equity shareholders, included:

stipulation that Visalus’ Founders Equity Incentive Plan doesn’t actually sell stock

a requirement that all equity shareholders maintain active affiliate status into 2020 to continue to qualify as shareholders

Visalus granted the right to increase or decrease the total number of shares offered in the plan

Visalus granted the right to forfeit affiliate shares if it terminates a Visalus equity shareholder affiliate for any reason

mandatory arbitration through a jurisdiction of Visalus’ choosing

Byrd sees the agreement as an attempt to undermine her proposed class-action lawsuit.

Through her attorneys, Byrd argues potential class members will

now believe that the only way they will ever see their investment, is to sign any document placed in front of them.

In addition to there being no mention of Byrd’s lawsuit or the potential signing away of legal rights if equity shareholders sign the new agreements, Visalus also omitted a recommendation that equity shareholders seek legal advice prior to signing the document.

In an emergency motion filed on September 13th, Byrd requested the court

prohibit Visalus from further contacting potential class members with respect to their participation in Founders Equity Incentive Plan, without prior approval from the court

require Visalus to file all court-approved communicati

🤖 Quick Answer

What is the "Founders Equity Incentive Plan" mentioned in the Visalus case?
The Founders Equity Incentive Plan is an equity investment program offered by Visalus to company affiliates. According to the allegations, Visalus initially accepted and qualified participants for a two-year period but subsequently attempted to void shareholders' legal rights related to their equity investments in the company.

Who filed the complaint that triggered the Colorado Securities Division investigation?
Caprece Byrd, a current Visalus affiliate, filed the complaint with the Colorado Securities Division. This complaint initiated the securities investigation into Visalus' business practices and equity offerings to its affiliate network.

What are the main allegations in Byrd's lawsuit against Visalus?
Byrd's lawsuit alleges that Visalus corporate intentionally lured her and over one thousand other affiliates into a fraud

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