KEN DUNN LAWSUIT WITH MAXGL HAPPY ENDING!
10 May 2011 – According to the press release below both parties are happy with the out of court settlement that saves all of them time and money. It is unusual though to have both parties put out such an enthusiastic press release praising each other. Ken Dunn is on the annual MLM Cruise and was not happy about having to file the lawsuit. We gather from the tone of this press release that all involved are happy.
STREAM ENERGY COMP PLAN-PYRAMID?
LAWSUIT BACK TO LOWER COURT!
The Fifth Circuit Court of Appeals overturned a lower court's ruling that dismissed a lawsuit filed against Stream Energy. The original lawsuit accused the Dallas-based energy retailer of running a marketing arm that operates as a pyramid scheme. The Circuit Court of Appeals, however, said the arbitration clause in the distributor's agreements may be "illusory," prompting the panel of judges to reverse the dismissal, sending the case back to the lower court for review.
Ed. Note: front end coding bonus pay plans have been under attack by various State AGs. This civil court lawsuit may become guidance against front end coding bonus plans that have been used in the service MLMs. OUCH!
AMERIPLAN SAYS NO TO $5.5 MILLION CASE
AmeriPlan Corporation’s Response to the Anthony Anderson Verdict
We acknowledge that a Dallas County jury recently awarded Anthony Anderson, a former AmeriPlan Independent Business Owner (“IBO”), a sum of approximately $5.5 million dollars. The trial lasted nearly two weeks and the litigation covered a myriad of extremely complex issues. Broken down, the jury awarded Mr. Anderson $150,000.00 in actual damages, $370,000.00 in attorney’s fees, and a punitive award of $5,000,000.00.
Before a legal explanation of the jury’s award is discussed, it is extremely important that everyone understand that Mr. Anderson was terminated because of unethical and illegal activities against AmeriPlan. Termination of an IBO is a serious matter and AmeriPlan has never terminated an IBO without sufficient proof of wrong doing. The Board of Directors terminated Mr. Anderson after a thorough investigation revealed overwhelming evidence to justify their decision. Recently, a Brazoria County (Texas) Grand Jury indicted Mr. Anderson on charges of felony criminal theft arising from the same and similar activities that prompted his termination as an AmeriPlan IBO. Mr. Anderson’s criminal trial is set for later this year.
As for the jury’s award, Texas law caps jury awards to two times (2X) the amount of actual damages for cases like Mr. Anderson’s. This means the Court must reduce the $5,000,000.00 to $300,000.00 by law to conform to Texas statutes. Furthermore, by law Mr. Anderson is not entitled to both the punitive award and attorney’s fees. He must make his election of one or the other. Therefore, barring any appeal by AmeriPlan, the most Mr. Anderson can collect is the sum of actual damages ($150,000.00) plus either the attorneys fees ($370,000.00) or the reduced punitive damages award ($300,000.00) for a total award of roughly $450,000.00 (less than one-tenth of the jury’s award).
Despite the judge ordering the jury to base their decision on the evidence introduced at trial, the large punitive award suggests that the jury’s decision was emotionally driven, possibly fueled by the “David vs. Goliath” dynamic working in Mr. Anderson’s favor. Regardless of the jury’s motives, the amount of the award is legally unenforceable, and will be reduced as a matter of law to conform to the Texas statutes. Furthermore, AmeriPlan will appeal the decision on legal grounds. AmeriPlan is confident The Court of Appeals will review the facts presented at trial and reverse and render a judgment that is both consistent with Texas law and favorable to AmeriPlan.
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AMERIPLAN TO FORK OUT $5.5 MILLION TO DISTRIBUTOR – MORE COMING
A Dallas jury awarded a $5.5 million verdict in a contract dispute to Anthony Anderson, a Houston man who was a former independent sales agent for Ameriplan of Dallas. Ameriplan terminated him in November 2005 after he worked for them 9 years. The plaintiff’s attorney, Ross Sears of Sears Crawford, is also pursuing two similar cases and says AmeriPlan’s promotional materi create a challenge for the Dallas (Plano) based MLM company.
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MAX INTERNATIONAL EX - CEO ANGEL LEE SUES
SLEEPER IN CLOSET AMWAY SUIT AGAINST MONAVIE
Editorial Opinion: Monavie sued Amway for Distributor interference. Then Amway gathered a bunch of violations sure to upset the FDA - HOME FOR MLM LAWSUITS
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