News of the recent Visalus class-action settlement appears to have spread, resulting in a number of queries from victims as to how to proceed. Following a spate of enquiries over the last few days in particular, I figured it’d be worthwhile putting up a guide for victims unsure of what their options are.
Visalus @ BehindMLM
It appears somebody at Visalus is intent on settling the company’s outstanding lawsuits. After reporting on settlement of Visalus’ pyramid scheme class-action, next on my calendar was an update on the Visalus securities fraud class-action. To my surprise that case also had a settlement submitted for approval on May 23rd.
A settlement has been reached in the long-running Visalus pyramid scheme class-action lawsuit. One of the conditions in the submitted settlement will see Visalus agree to stop paying on recruitment… …but only for three years. What?
Liv launched in mid 2017 and describes itself as an ‘invite-only, global lifestyle community for passionate people‘. The company is headed up by Visalus co-founders, Nick Sanicola (CEO), Blake Mallen (President) and Ryan Blair. Curiously, Visalus is not mentioned in any corporate bios or the “about us” section of Liv’s website. Although they are presented [Continue reading…]
Last July former top earner Michael Gehart filed a lawsuit against Visalus. Gehart alleged Visalus was an “illegal pyramid scheme”. He also the claimed the company ran a secret Amazon retail racket, effectively giving Gehart an unfair advantage over other Visalus affiliates. In early 2017 Visalus took control of the Amazon racket, prompting Gehart to [Continue reading…]
Roughly nine months ago a lawsuit was filed against Visalus alleging securities fraud. Allegations in the lawsuit pertain to Visalus’ Founders Equity Incentive Plan, through which an estimated $15 million was invested in virtual shares. Those who invested were promised shareholder status and “dividend payments”, which never materialized. The lawsuit is an attempt by three [Continue reading…]
Despite representing affiliates who invested in Visalus’ “Founders Equity Incentive Plan” were accepted and qualified for two years, the company recently sough to back-pedal on its representations and agreements. The dirty move appears to be a direct response to a round of document subpoenas, served on Visalus and a top affiliate by the Colorado Securities [Continue reading…]
MLM affiliates receiving giant oversized commission checks means different things to different people. Prospective affiliates might see a window of opportunity, a chance to better themselves financially. Existing affiliates might take it as a kick up the butt and commit to their business with newfound focus and enthusiasm. A regulator might see income claims used [Continue reading…]
The trouble with MLM companies offering shares is that such undertakings are rarely done within the required legal framework. If a new class-action lawsuit is to be believed, Visalus’ Founders Equity Incentive Plan is a typical example of why any internal MLM company share offering should be approached with nothing less than extreme caution.
Michael Gehart joined Visalus in February, 2010. Visalus is a weight loss MLM company founded in 2005 by Blake Mallen and Nick Sarnicola. Gehart had no prior MLM experience when he signed up as a Visalus affiliate. He was recruited by Vito Torriciano, a part-owner of the company, (at a) meeting with Nick Sarnicola, and with [Continue reading…]