Amway Unit Pays $55M To End Pyramid Scheme Case

Law360, New York (November 4, 2010, 2:46 PM EDT) -- An Amway Corp. unit has agreed to pay $55 million in direct economic relief and modify its business practices and contracts as part of a settlement with a class of distributors who accused the network marketing company of operating an illegal pyramid scheme.

Under a settlement agreement filed Wednesday in the U.S. District Court for the Northern District of California, Quixtar Inc. will establish a $34 million cash fund and a $21 million product credit fund. Of that money, no more than $20 million will go...
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