Vemma Settle with FTC
For Vemma, there are three key components of the settlement.
First, despite the FTC's initial allegations, the settlement contains no admission of fault or any finding that Vemma operated unlawfully or as a 'pyramid scheme.' From the beginning of the litigation, Vemma - a twelve year old family-owned business - has denied wrongdoing and has strongly contended that it is a customer-driven company with excellent, clinically-studied wellness products.
Second, the settlement does not require Vemma to pay any money. As part of the settlement, Vemma did stipulate to a $238 million dollar damage award. However, the parties expressly agreed that Vemma does not have to pay anything so long as it and CEO BK Boreyko comply with the terms of the settlement.
The question is, why did Vemma agree to such a large award? The answer is simple. First, the FTC did not require the company to pay the fine. But more importantly, while Vemma believes that many of the FTC's allegations were incorrect, the company agreed to the award in order to settle the lawsuit. Given the financial and emotional cost, along with the significant distraction of continued litigation with the FTC, Vemma wants to focus on rebuilding its business, not proving the FTC was wrong.
Third, and most important, the settlement allows Vemma to continue doing business, as it has for over the past year, providing some of the most unique, ultra-premium liquid wellness products available anywhere.
'This settlement not only brings an end to the litigation,' said BK Boreyko. "It allows Vemma to continue to deliver its products to its customers. Although Vemma did not pay a fine, we paid a huge price to prove the value of our products and the ongoing validity of our business. We are excited about the future and look forward to serving our customers and rebuilding and re-growing our company.'
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