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Friday, March 29, 2024

Arbonne consultants allege company operates an illegal pyramid scheme

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LOS ANGELES (Legal Newsline) – A Texas couple have filed a lawsuit against international multilevel marketing company Arbonne alleging it is "a pyramid scheme masquerading as a direct seller of health and beauty products," their suit states.

Cynthia Dagnall and Michael Dagnall filed a complaint on behalf of similarly situated persons on May 25 in Orange County Superior Court against Arbonne International LLC, Donna Johnson, Cassandra House, Tarrah Brandsma, Iain Pritchard and Deborah Carroll Neal alleging operation of an illegal pyramid scheme.

According to the complaint, Cynthia Dagnall spent $2,500 to purchase products and promotional materials and her husband Michael Dagnall paid $340 in fees as consultants with Arbonne from 2014 to 2016. The suit states Cynthia Dagnall received only $30 in payments from Arbonne and that her husband received zero.

The plaintiffs holds Arbonne International LLC, Johnson, House, Brandsma, Pritchard and Carroll Neal responsible because the defendants business practices are fraudulent and is an illegal and deceptive "endless chain scheme," the suit states.

The plaintiffs request a trial by jury and seek declaration that the contracts between the defendants and plaintiffs are avoid, restitution, compensatory and consequential damages, all legal fees, interest and any other relief as the court deems just. They are represented by Betny A. Townsend of Reid Collins & Tsai LLP in Austin, Texas.

The defendant removed the case to the U.S. District Court for the Central District of California on July 17.

U.S. District Court for the Central District of California case number 8:17-cv-01214-DOC-KES

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