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Chinese plaintiffs file class action against health supplement company

By Legal News Line | Feb 5, 2015

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LOS ANGELES (Legal Newsine) - Three Chinese citizens filed a class action lawsuit against a health supplement company and a number of its affiliates on Friday over allegations of false advertising and associated infringements dating back to 2007.

Yunxia Wang, Fengqin Xu and Qun Xu sued EFT Holdings, Inc. along with Buckman, Buckman & Reid, Inc.; Greenstone Holdings, Inc.; Brown Door, Inc.; Pierstone Group, LLC; and Regal Walnut, LLC. 

The defendants allegedly promised the plaintiffs earnings and partial business ownership in return for selling health supplement products and recruiting new participants in China.

The products were advertised as providing health, anti-aging and nutritional benefits, the plaintiffs claim. To join the EFT team, plaintiffs and class members allegedly were required to make initial investments in EFT products in exchange for the right to recruit new members and earn rewards.

EFT allegedly targeted consumers in China to bypass certain U.S. laws while ignoring a warning from the U.S. Food and Drug Administration that said its products were illegal and misbranded. 

The plaintiffs are seeking restitution, attorneys fees and court costs.

They are represented by Suzelle Smith, Don Howarth, Padraic Glaspy and Jessica Walsh, of Howarth & Smith; and Stephen Tuggy, of Locke Lord, LLP. Both firms are in Los Angeles.

U.S. District Court for the Central District of California case no. 2:15-cv-00727

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