An October 11th court order has referred the SEC’s fraud case against OnPassive to mediation.

The same day the order was filed, the court noted that the parties had “yet to agree on a mediator”. The parties were directed to select a mediator and mediation date within fourteen days.

A settlement through mediation would avoid the SEC’s case going to trial, currently scheduled for June 2025.

The other update to note is a Motion to Dismiss filed by OnPassive on October 16th.

Among other things, in its motion OnPassive argues

the Complaint should also be dismissed because the allegations concerning the OnPassive business model describe nothing other
than the type of multi-level marketing program that courts routinely find to be lawful.

OnPassive has and at no time during its operation had any retail customers during its operation. This is the very definition of an MLM pyramid scheme.

There’s no timeline for a decision on OnPassive’s Motion to Dismiss. We’ll keep an eye on the docket for an order.


Update 28th October 2023 – A mediator has been agreed on and a mediation date has been scheduled for May 10th, 2024.