California distributors file lawsuit against USANA - BloggingStocks

This just game across from BloggingStocks

California distributors file lawsuit against USANA - BloggingStocks

The Lawsuit was filed by San Diego class-action lawyer Alexander M. Schack.

Among other things it seeks:

An injunction stopping Salt Lake City-based USANA from doing business in California.
And Seeks damages for "downline" distributors

It will be interesting to see how this turns out. Most distributors sign an "arbitration agreement" when they sign-up for a business opportunity. Can the attorney have the arbitration agreement declared null and void so he can put together a class action suit?
If most of these class action particiapants were only active for a short period of time as USANA distributors what kind of damages could they expect to reap?

Well one thing is for sure, it will not be a quick process. Most suits drag on for months or years before a settlement is reached. Most settlements see a huge percentage of the damages eaten up my attorneys fees and other miscellaneous expenses. The attorneys could take 40% right off the top and pay all legal expenses before the first settlement check is ever mailed.

A win by the distributors would have major ramifications on the industry. Churn rates are high in the industry. The Class Action Attorneys know that this is fertile feeding ground with hundreds of thousands of inactive distributors, and it looks like they want to shake the tree a little and see what falls.

Is USANA guilty of anything? If the court will here this we all find out. There sure seems to be lots of smoke for there not to be any fire!