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Wednesday, September 12, 2007

CALIFORNIA COURT CASE UPDATE!
Pyramid Scheme Lawsuit Against Quixtar Will ContinueFederal Judge adjourns case until September 19thLos Angeles, California -United States District Court Judge Gary Feess will continue to hear arguments on September 19th in a lawsuit brought by top ex-Quixtar Independent Business Owners (IBOs) against Quixtar alleging that the company is an illegal pyramid scheme. Quixtar is a sister company of Amway Corporation based in Ada, Michigan. Amway was started by Jay Van Andel and Richard DeVos and is still controlled by their families.A nationwide class of IBOs filed a lawsuit (Woodward et al. v. Quixtar,Inc. CV 07-5194 GAF) against Quixtar August 9, 2007, in the United States District Court for the Central District of California, Los Angeles. The complaint alleges that Quixtar is operating as an illegal pyramid scheme. The complaint asks the court to find the Quixtar uniform distributor contracts unenforceable as they promote an illegal result and the purpose of entering into the contract has been frustrated by the illegal activities of Quixtar. The plaintiffs in the California case are seeking to be released from their contract."Everyday in court is a big win for the IBOs," said D.J. Poyfair, attorney for Denver-based Shughart, Thomson & Kilroy, the firm representing the IBOs. "The more documents and information that becomes public about how Quixtar operate the better it is for my clients.""For the first time in history, the truth about Quixtar is coming out into public view," Poyfair added. "If the Van Andel and DeVos families truly believe in free enterprise they will do the right thing and let my clients go."Documents filed in the case clearly outline the IBO's reasons for filing the lawsuit. The documents state in part:"Quixtar knows its products are priced so high they cannot be sold and yet it continues to recruit distributors in a concerned effort to enrich the founding families at the expense of the rank and file simply trying to earn a living. Quixtar holds itself out as a legitimate, multi-level home-based business opportunity, but in fact operates as an illegal pyramid recruitment scheme. Quixtar leads participants to believe that they can build a viable business retailing Quixtar products; but once the participants sign up and pay their initial investment into the pyramid, it quickly becomes evident that Quixtar's products cannot be retailed because they are hopelessly overpriced. Quixtar no longer makes any pretense of retailing products to consumers outside of Quixtar's network of distributors, but relies entirely on the purchase and internal consumption of products by distributors to fuel its pay plan."
Posted by The IBO Rebellion at 4:05 PM 6 comments
Labels: California case update press release