By Kim Cruzcosa
New case could help safeguard due process in future company shutdown pursuit.
On Aug. 24, 2015, 15 federal agents stormed the headquarters of Arizona-based direct seller Vemma Nutrition, halting its operations, freezing bank accounts and firing employees. Led by regulators at the Federal Trade Commission (FTC), the raid put the company into receivership and essentially out of business.
In December of the next year, Vemma settled the lawsuit with the FTC, which alleged that Vemma “was a pyramid scheme that compensated participants mainly for recruiting others rather than for retail sales based on legitimate consumer demand for the products,” according to an FTC press release.
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