Sommers Schwartz, P.C. Files Class Action Lawsuit Against ViSalus, Inc. Alleging Violations of Federal and State Securities Laws
A copy of the Complaint may be obtained from the Court, or by calling
Among other claims, the Complaint alleges that in violation of Section 10b-5 of the
According to the lawsuit, the shares were made available during a public offering via an instrument called the “Founders Equity Incentive Plan” (the “Plan”) that called for the equity to be sold in two lots – 3% in 2015 and another 3% in 2016. Neither the company nor the selling shareholders registered the offering, prepared a formal prospectus, or disclosed information about the company’s precarious financial condition.
The Complaint alleges that advertising and promotional information about the Plan stated that purchasers could obtain their equity by “qualifying” through participation in the company’s distribution system, a purported pyramid scheme at the center of a separate pending class action (Kerrigan, et al., v.
The Complaint further alleges that, to entice buyers to “March to Equity” – a promotional campaign for the Plan – the Defendants promised a “generational” dividend and a specific payout slated for
The Plaintiffs claim that, to date, no shares have never been tendered by the Defendants, nor have they revealed the quantity of stock each purchaser acquired. Further, the Plaintiffs and other Class members have been advised they must continue to work for
The Complaint also alleges federal and state laws required the Defendants to file a registration and prospectus before offering the securities, the failure of which prevented the Plaintiffs and other Class members from learning facts necessary to correct the Defendants’ misrepresentations about the Plan. Similarly, the Plaintiffs allege that the Defendants materially misrepresented the circumstances of the Plan and fraudulently induced them to purchase unregistered securities, resulting in financial loss. But for the Defendants’ fraudulent and deceptive actions and the expectation created by the Defendants that purchasers would receive a portion of the 6% equity offering, the Plaintiffs and other Class members would not have continued to purchase products and otherwise remain in good standing under the Plan following their initial qualification.
If you participated in the
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