Defunct MLM company Rodan + Fields has settled a class-action alleging now former Consultants were employees.

A proposed settlement was filed with a Californian state court on May 6th.

Settlement negotiations are detailed in the proposed settlement filing as follows;

On July 5, 2024, the Parties participated in private mediation with experienced class action mediator.

After extensive negotiations and discussions regarding the strengths and weaknesses of Plaintiffs’ claims and Defendant’s defenses, the Parties were able to reach a resolution.

As per the settlement, Rodan + Fields has agreed to pay the yet to be certified class $8 million.

Members of the class-action are defined as

all persons who entered into Consultant Agreements with Defendants in California for the purpose of selling Rodan + Fields’s products in exchange for commissions, and who were classified by Rodan + Fields as “independent contractors” during the Class Period.

The Class Period is defined as March 2020 to the date the court grants preliminary approval (i.e. anyone who joined Rodan + Fields after March 2020).

Note that the settlement is “opt-out”, meaning any Rodan + Fields former Consultant who does not wish to participate must manually exclude themselves.

Finally of the $8 million amount;

  • $29,000 will be paid to Class Members directly involved in the litigation and
  • $2.66 million will be paid to their attorneys + $29,096.92 in out-of-pocket costs

The court has scheduled a Case Management Conference for June 20th to discuss the proposed settlement.