Herbalife Can't Dodge 'Pyramid Scheme' Class Action

Law360, Los Angeles (October 15, 2013, 6:16 PM ET) -- A California federal judge on Friday refused to toss a putative class action alleging Herbalife International of America Inc. operates as an unlawful pyramid scheme, finding the former distributor suing the company has adequately pled that Herbalife's business model fits the definition of such a scheme. 

U.S. District Judge Beverly Reid O' Connell denied Los Angeles-based Herbalife's motion to dismiss Dana Bostick's suit, saying that, at this phase of the litigation, Bostick has adequately supported his allegations against the company.  

Bostick, a 68-year-old retired general...
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