The following is a summary issued by Robert FitzPatrick and Pyramid Scheme Alert about the historic class action settlement that was just reached with the Amway Corporation, the largest of all multi-level marketing companies.
Three directors and advisors of Pyramid Scheme Alert, including Robert FitzPatrick, served as experts and consultants for the victims in this case.
Amway has agreed to pay victims and cover litigation costs amounting to over $55 million in cash and products. A judicially administered fund will pay refunds to two classes of victims, those who joined and quit within a year, usually paying only initial fees, and another group of those who stayed in longer and lost much more. Another $50 million will be paid in other costs incurred by Amway to meet the terms of the settlement.