Visalus Amazon racket lawsuit settled in secret?
Last July former top earner Michael Gehart filed a lawsuit against Visalus.
Gehart alleged Visalus was an “illegal pyramid scheme”. He also the claimed the company ran a secret Amazon retail racket, effectively giving Gehart an unfair advantage over other Visalus affiliates.
In early 2017 Visalus took control of the Amazon racket, prompting Gehart to file suit over lost income.
A year and a half later it seems Gehart has reached a settlement with Visalus, following filing of a stipulated dismissal on November 27th.
The stipulated dismissal doesn’t provide any details but is made with prejudice, meaning Gehart can’t refile the lawsuit.
For their part, rather than defend racketeering and pyramid scheme allegations, Visalus appear to have decided it’s easier to just pay Gehart off.
Certainly one would assume Gehart’s allegations, especially with respect to the creation of fake retail customer revenue, would trigger a Visalus regulatory investigation.
As of yet however it doesn’t appear to happened. At least not publicly.
At the time of publication a whopping 66% of visitors to the Visalus website originate from Italy. The second largest source is the US, coming in at just 4%.
A visit to Amazon confirms Visalus is actively selling its products on the e-commerce giant’s localized Italian website.
A decision on the November 27th filed stipulated dismissal with prejudice remains pending.