Ex Herbalife Distributors Allege Pyramid Scheme
But it looks as if the L.A. company will have to fight again. A group of former top distributors in the midst of a nasty legal battle with Herbalife is renewing the claim that Herbalife operates as a pyramid scheme.
The allegation could be disregarded as a standard strategic countersuit - Herbalife earlier sued the group for allegedly poaching hundreds of its independent distributors to a competing business - except that the federal judge overseeing the case recently denied Herbalife's request to throw out the pyramid scheme claim, instead ruling it should go to trial.
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