TelexFree gives up in court, lawyer won’t comment
Following the loss of TelexFree’s interlocutory appeal early last week, it appears that the company filed yet another appeal in an attempt to persuade the Acre Civil Court to reverse an injunction that currently prevents the company paying out existing investors or signing new ones on.
From a legal standpoint TelexFree’s appeal doesn’t make much sense (an appeal of an appeal?), as I believed the interlocutory appeal was the final appeal hearing in the Acre Civil Court.
In any case, TelexFree’s appeal of the decision handed down on the 12th (which upheld the injunction) was scheduled to be heard last Tuesday. A few hours before the hearing was to take place however, TelexFree got cold feet and abandoned the effort altogether.
TelexFree’s special appeal was scheduled to be judged in the Civil Chamber last Monday (19), but ended struck from the cause list because the company withdrew their appeal.
According to a (court) spokesperson, TelexFree’s lawyers filed a request to withdraw the appeal a few hours before the session, claiming that their request was harmed because of the merits of the appeal had already been dismissed by the 2nd Civil Chamber.
Why it took TelexFree a whole week to come to the conclusion that filing an eleventh appeal against the injunction using the same “we’re not a Ponzi scheme” arguments was a lost cause, is a mystery.
When questioned by the media about the withdrawal, TelexFree’s lawyer Roberto Duarte said he ‘does not talk about the company‘.
Earlier this week TelexFree owner Carlos Costa announced that the company was going to submit a petition to the courts in Brazil.
Which court the petition was to be filed in is not clear, however Costa believes that by demanding TelexFree be allowed to use a matrix-based model (which has been taken from the existing TelexFree compensation plan), that the company will prove itself not to be a Ponzi scheme.
The main difference between the matrix model and TelexFree’s existing model is that instead of affiliates investing and being paid $20 per position invested in each week, affiliates will buy matrix positions and receive 2% of each position under them each month.
I imagine the petition will now have to be filed in the Superior Court if it indeed goes ahead. Due to the timing of Costa’s announcement however (late last week before last Monday’s now aborted hearing), it’s unclear whether or not the petition will still be filed.