Facts

Dana Bostick, Anita Vasko, Judi Trotter, Beverly Molnar, and Chester Cote, filed a class action against Herbalife International of America Inc., Herbalife International Inc., and Herbalife Ltd.

PLAINTIFFS' CONTENTIONS:
Plaintiffs are distributors of Herbalife, a multi-level marketing company. Plaintiffs alleged Herbalife, in various promotional materials claimed they would make money as Herbalife distributors. Plaintiffs also alleged Herbalife overcharged its distributors for "Packaging and Handling" and shipping charges. Plaintiffs alleged they lost money on their Herbalife distributorships. Plaintiffs, on behalf of themselves and other U.S. distributors, accused Herbalife of violating California's Endless Chain law and unfair competition laws.

DEFENDANTS' CONTENTIONS:
Herbalife denied the allegations and asserted various affirmative defenses.

Result

The parties settled their dispute for $15 million to fund business opportunity claimants and $2.5 million to fund product returns for a total of $17.5 million in economic value to the class. The court awarded $4.9 million in fees and over $210,000 in expenses. Eligible class members, who were compensated based on their losses claimed on the resale of Herbalife product, received up to 100 percent of their claimed losses, averaging $1,101 with the highest payment being $98,000. A $20 flat rate payment was available to class members that did not purchase over $750 in product from Herbalife.