Ex-Amway Unit to Pay $155 Million in Suit
Posted: Tue Nov 30, 2010 4:47 pm
Ex-Amway Unit to Pay $155 Million in Suit, Lawyers Say
The story was also reported on the front page of the USAToday 11.05.10.
November 03, 2010, 3:55 PM EDT
(Updates with lawsuit claims in second paragraph.)
Nov. 3 (Bloomberg) -- Quixtar Inc., a former subsidiary of Amway Corp., and two law firms representing three independent business owners who sued the company, reached a settlement worth as much as $155 million, attorneys in the case said.
The settlement, filed today in federal court in San Francisco, resolves a lawsuit alleging that Quixtar ran a fraudulent pyramid scheme inducing people to invest in products to sell and making false promises that they could earn big profits, according to court filings.
The settlement includes $55 million in cash, $21 million in product refunds, price reductions and other compensation, according to the filing.