ACN Trump lawsuit survives motion to dismiss, likely to be settled
An ACN related class-action lawsuit has survived a motion to dismiss.
On July 24th RICO claims filed against the Trump family in connection to promotion of ACN were dismissed.
Six counts pertaining to fraud, false advertising and unfair competition survived and remain standing.
Despite allegations directly pertaining to the Trumps’ promotion and endorsement of ACN, only the Trump family and the Trump Corporation were named defendants in the October 2018 lawsuit.
The lawsuit alleges the Trumps made millions promoting ACN, despite claiming otherwise. Claims made in relation to the Trumps’ endorsement of ACN were also called into question.
In defense of his actions, Trump’s lawyers have claimed
Donald Trump’s statements about ACN were merely opinion or could not be relied on by the investors.
The dismissed counts pertain to RICO allegations. The basis of the dismissal was a lack of evidence directly tying the Trump’s conduct to ACN distributor losses.
Left standing are counts pertaining to violations of the California Business and Professions Code, Maryland Consumer Protection Act, Pennsylvania Unfair Trade Practices and Consumer Protection Law, common law fraud and common law negligent misrepresentation.
Looking forward one of Trump’s attorneys has advised Reuters
the Trump family expects to ask Schofield to move the plaintiffs’ claims into arbitration.
Past MLM class-actions that have gone through arbitration have primarily benefited the MLM company being sued, class-representatives and their attorneys.