Dana Bostick v. Herbalife International of America Inc., et al.

CV 13-02488-BRO (RZx), United States District Court, Central District of California

Herbalife distributors successfully prosecute their nationwide claims to a $17.5 million settlement; FBBC secures the preliminary approval of a $17.5 million settlement for nationwide class of former Herbalife distributors

In a nationwide class action against multi-level marketing company Herbalife, Inc., FBBC led a class action on behalf of hundreds of thousands of the company’s current and former distributors, seeking compensation for what the distributors alleged were the company’s unlawful business practices. FBBC’s clients alleged that Herbalife was operating a pyramid scheme, whereby it profited from the recruitment of additional distributors and not from the sale of its products. Herbalife was defended by Jonathan Schiller of the nationally recognized firm Boies, Schiller & Flexner LLP. FBBC, along with co-counsel, designed a successful litigation strategy to weather an anticipated aggressive defense implemented by one of the nation’s largest law firms. FBBC successfully prosecuted its case on behalf of the nationwide class. FBBC secured the preliminary approval of a $17.5 million settlement on behalf of the class members, which allocated $15 million to a cash settlement and established a $2.5 million fund for the repurchase of unused Herbalife products. Herbalife also agreed to implement substantial corporate reforms as a result of the lawsuit.