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A Texas couple says an Arbonne pyramid scheme has been bilking money out of hundreds of thousands of victims.
Plaintiffs Cynthia and Michael Dagnall say they lost money they shouldn’t have after signing up for a multi-level marketing scheme run by defendant Arbonne International LLC and its five named principals.
The Dagnalls allege Arbonne’s business model is an illegal conspiracy under the federal Racketeer Influence and Corrupt Organizations Act, or RICO.
According to this Arbonne pyramid scheme class action lawsuit, the Arbonne company presents itself as a multi-level marketing enterprise that distributes health and beauty products. The company’s revenues for 2016 reportedly reached $541 million.
The Dagnalls claim these revenues were generated not through legitimate business activity but through conning money out of Arbonne’s thousands of individual distributors.
According to the Dagnalls, Arbonne recruits participants into its scheme under the guise of offering them an opportunity to make money by selling Arbonne products. Arbonne allegedly requires these participants – styled as “independent contractors” – to spend money on startup packages, annual dues, and a hefty inventory of products.
In return, Arbonne offers to compensate its consultants for recruiting new consultants. The opportunity to make money through product sales is only a theoretical possibility, the Dagnalls claim. They say the only way consultants can make money through this alleged Arbonne pyramid scheme is by “feeding off the money paid by other consultants.”
Ultimately, “[t]he vast majority of Arbonne’s Consultants lose money,” according to this Arbonne pyramid scheme class action lawsuit. The plaintiffs say Arbonne’s own income statement shows that over 86 percent of its consultants lose money.
This fate allegedly runs contrary to the promises of financial success featured in Arbonne’s advertisements, the plaintiffs say. Arbonne has allegedly “flooded the internet” with promotional materials luring new consultants into the Arbonne pyramid scheme with promises of financial rewards. These materials supposedly emphasize that for Arbonne consultants, the real money is to be made in recruiting new consultants.
The Dagnalls claim that most Arbonne consultants will never achieve the financial success promised in the defendant’s promotional materials no matter how hard they work. They say the only persons making money in the alleged Arbonne pyramid scheme are those at the top of the pyramid – in this case, the five individual defendants.
The Dagnalls are proposing to represent a Class of all Arbonne consultants who paid fees to Arbonne and purchased Arbonne products within the applicable statutory limitations period and who ended up losing money because of their participation in the alleged Arbonne scheme. Class Members are expected to number in the hundreds of thousands.
The plaintiffs are asking the court for avoidance and rescission of all contractual obligations related to the Arbonne pyramid scheme. They also seek awards of compensatory and consequential damages, restitution and disgorgement of ill-gotten gains, court costs and attorney’s fees.
The Dagnalls are represented by attorney Betny A. Townsend of Reid Collins & Tsai LLP.
The Arbonne Pyramid Scheme Class Action Lawsuit is Cynthia Dagnall and Michael Dagnall v. Arbonne International LLC, et al., Case No. 30-2017-00922926-CU-RI-CXC, in the Superior Court of the State of California, County of Orange.
UPDATE: The Arbonne Pyramid Scheme Class Action Lawsuit was dismissed on March 20, 2018. Top Class Actions will let our viewers know if another complaint is filed.
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25 thoughts onArbonne Class Action Says Pyramid Scheme Scams Thousands of Victims
Please add me
Do me and everybody else in the world a favor and please call this number: 1-888-321-3840. Next-gen vacations. There in Kissimmee, FL. They called me to schedule an apt for tomorrow afternoon to go to a seminar and promise me two free airline tickets anywhere in the US! It’s obviously a damn scam! To hell with them ass holes! Yes, I did schedule a time to go to their seminar with my GF. But, hell no, I AIN’T GOING! I did that just to waste their time! I also wasted about 10 minutes on the phone with them to!
Now, they want to call me tomorrow before my appointment. But, I am going to block their number!
But, please, everybody, call them and bomb these jackasses with calls! Also, schedule fake appointments like I did! Then block the number so they can’t call you! Then you call them again! Call them often to!
Again, that is:
888-321-3840.
Any updates?
She has always promoted mlm companies. Google her. It’s just a money grab.
I tried very hard, and now I have to depend on my mom for help! it is so humiliating! these jobs do not want to hire me because I am over 50! it is wrong! I want to support myself, I lost thousands with Arbonne- not to mention the stress of trying to sell, and people saying no all of the time! oh and they say they are a “family” nooo, once you stop Arbonne you no longer exist to them , but KARMA will get them!
It’s been moved to a federal court.
Why is there no update on this site!!!
The case is still moving through the courts and has not yet reached a settlement. Claim forms are usually not made available to consumers until after a court approved settlement is reached. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
I hope we all get a nice settlement! and these scam artists can see how the other half lives!
I would like to be involved in this.
I want to join the lawsuit.
The case is still moving through the courts and has not yet reached a settlement. Claim forms are usually not made available to consumers until after a court approved settlement is reached. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
Thank you.