Neora’s “bad faith” FTC lawsuit dismissed
Neora’s “we want to legalize pyramid schemes” lawsuit against the FTC has been dismissed.
Neora’s Illinois suit was filed in a preemptive attempt to undermine the FTC’s pending case against them.
Namely Neora sought declaration that “Nerium is not and never has been a pyramid scheme”.
In line with a New Jersey District Court, which found Neora’s lawsuit to have been “filed in bad faith”, the Illinois District Court was having none of it.
In dismissing Neora’s lawsuit Judge Ellis rejected Neora’s arguments. If Neora wanted to prove it wasn’t a pyramid scheme, they were able to do so by defending the FTC’s enforcement action.
Neora acknowledge(s) as much in their complaint, which states “whether or not Nerium is a pyramid scheme is inherently a fact-specific inquiry.”
Neora suggest(s) that regardless, the Court should make a fact-based inquiry because there is evidence to make this determination.
Neora cite(s) no law in support of this proposition.
Neora’s lawsuit was dismissed on August 31st “for lack of subject matter jurisdiction”.
In their enforcement action lawsuit, the FTC alleges Neora is a pyramid scheme.
Last month Neora failed to dismiss the case. They did however manage to get the case moved from New Jersey to Texas, where Neora is headquartered.
On September 9th Neora filed its answer to the FTC’s complaint. Stay tuned as we continue to track the case.