Swiss court rules Lyoness a Ponzi scheme, affiliate contracts invalid
Lyoness has lost a lawsuit filed in a Swiss Cantonal court.
The lawsuit sought to ascertain whether or not Lyoness Premium affiliate memberships were legally binding. Who filed the lawsuit is unclear (although my guess is a Lyoness affiliate who lost money).
At the center of the lawsuit, filed against Lyoness Suisse GmbH, was the 3000 franc premium Lyoness affiliate membership.
In a nutshell, Lyoness affiliates invest 3000 francs, receive a bunch of positions and earn a ROI when enough new positions have been created by subsequent investment.
The Judge hearing the case ruled that this was a Ponzi scheme, ‘which is unfair and unlawful‘.
There are not only parts of the (affiliate) contract that are illegal, but the overall terms (of the membership) are illegal (too), since they utilize an unfair financial system.
As a result of the ruling, all Lyoness affiliate membership contracts in Switzerland have been rendered invalid.
This means that affiliates who lost money in Lyoness through investment are now eligible for a refunds.
Unfortunately for victims of the scheme the Swiss ruling is not yet legally binding.
Lyoness has filed an appeal with the High Court which has yet to be resolved.