SOUTHFIELD, Mich.--(BUSINESS WIRE)--Sommers Schwartz, P.C. has filed a lawsuit seeking class action status in the United States District Court for the Eastern District of Michigan (docket no. Case No. 2:14-cv-12693) on behalf of all persons or entities (the "Class") that entered into an agreement with ViSalus, Inc., and purchased the right to become an Individual Promoter (“IP”) under the ViSalus Compensation Plan, and suffered a financial loss, for the period of July 9, 2009 through the present (the "Class Period").
A copy of the Second Amended Complaint may be obtained from the Court, or you can call our offices at (877) 957-6272 to speak with an attorney regarding this matter and we will send you a copy of the Second Amended Complaint.
Among other claims, the Second Amended Complaint alleges that under federal securities law Sections 10b-5(b) and 12(2), ViSalus, Inc., made certain misrepresentations and omissions in connection with the sale of the IP “business opportunity” or interests to individual purchasers. The Second Amended Complaint also alleges that under Section 10b-5(a) and (c), ViSalus Inc., and Robert Goergen, Sr., Todd Goergen, Nick Sarnicola, Blake Mallen, and Ryan Blair (the “Securities Defendants”) participated in a scheme to defraud the Class. The allegations under both Section 10b-5 and 12(2) are, generally, that the named defendants falsely represented and/or engaged in a scheme to defraud that it/they were conveying as a legal business opportunity to a participant-purchaser of an IP interest, when, in fact, they and each of them knew or recklessly ignored that the putative Class members were purchasing an interest in an illegal pyramid scheme. In the alternative, the complaint alleges that defendants’ actions omitted material facts, i.e., that they were selling an interest in a pyramid scheme, in connection with the sale of distributorships in ViSalus.
The Second Amended Complaint also alleges that some or all of these defendants, along with various others specifically named in the Second Amended Complaint, were engaged in violations of the Racketeering and Corrupt Organizations Act, Sections 1962 (c) and (d). Generally, the Second Amended Complaint alleges that ViSalus and various individual defendants, participated in an illegal pyramid scheme selling distribution rights to individuals primarily for the right to recruit others. Beginning in 2009, and continuing until the market became saturated the company, its promoters and professional recruiters recruited hundreds of thousands of people to become IP promoters of the ViSalus “business opportunity.” The Second Amended Complaint alleges that the defendants engaged in a pattern of racketeering activity under federal mail and wire fraud statutes causing a loss to the vast majority of the people who were recruited into the scheme.
The Second Amended Complaint also alleges that the Securities Defendants and others violated various provisions of the Michigan Consumer Protection Act, the Michigan Franchise Investment Law, and common law of civil conspiracy, unjust enrichment, and conversion.
A full description of the allegations and legal theories is also available by review of orders issued by the Court prior to the filing of the Second Amended Complaint. These orders may also be obtained from the Court or from our offices.
If you purchased or otherwise acquired an IP interest in ViSalus between July 9, 2009 and the present, you may qualify to serve as lead plaintiff on behalf of the Class. All motions for appointment as lead plaintiff must be filed with the Court no later than sixty days from today. Any member of the proposed Class may move the Court to serve as lead plaintiff in this action through counsel of his or her choice, or may remain an absent class member. There are certain legal requirements to serve as lead plaintiff, which we would be pleased to discuss with you. Please contact Andrew Kochanowski by email at email@example.com or telephone at (877) 957-6272 if you would like to discuss this action or have any questions regarding this notice or your rights.
Sommers Schwartz, P.C., a law firm located in Southfield, Michigan, represents individuals in Michigan and across the country who have been harmed as a result of fraud, medical errors, defective products, employment disputes, and other forms of negligence or intentional injury, as well as businesses involved in complex litigation matters that jeopardize their existence. Additional information about Sommers Schwartz can be found on its website: www.sommerspc.com.