A lawsuit was filed on behalf of investors in LifeVantage Corp (NASDAQ:LFVN ) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 03/05/2018 -- The Shareholders Foundation announces that an investor, who purchased shares of LifeVantage Corp (NASDAQ:LFVN ), filed a lawsuit over alleged Securities Laws violations by LifeVantage Corp.
Investors who purchased shares of LifeVantage Corp (NASDAQ:LFVN ), should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges, that the defendants violated Federal Securities Laws. Mores specifically, the plaintiff claims that LifeVantage and its Chief Executive Officer Darren Jensen, Chief Sales Officer Justin Rose, and Chief Marketing Officer Ryan Goodwin are operating an illegal pyramid scheme in violation of the federal Racketeer Influenced & Corrupt Organizations (RICO) Act, federal securities laws, and the Connecticut Unfair Trade Practices Act.
According to the lawsuit, LifeVantage sells distributorships which Defendants market as the business opportunity using sales pitches promising wealth and business independence. Defendants' compensation program encourages distributors to recruit others into the system with the same promises of wealth and business independence. Distributors pay money to participate in the business opportunity, which funds LifeVantage's payments and bonuses to other distributors. Despite LifeVantage's claims of retail sales, little money comes in to the system from actual retail users of LifeVantage products disconnected from the business opportunity or recruitment. Instead, it is believed that the majority of the company's retail sales are monthly sales made to distributors who purchase LifeVantage's products mainly in order to participate in the compensation program and remain eligible to receive bonuses.
Those who purchased shares of LifeVantage Corp (NASDAQ:LFVN ) have certain options and should contact the Shareholders Foundation.
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