Herbalife distributor wins suit

Herbalife distributor wins suit

The Arizona Republic, November 24, 1998

By Jane Larson

An Herbalife Worldwide Corporation. distributor won $620,000 in damages and the authority to future earnings from her business whenever a Maricopa County Superior Court jury came back decisions Monday from the multilevel marketing giant.

Mary Fallow, an old Mesa resident who now lives in Idaho, put her mind in her own hands and cried because the verdict was read.

Fallow, her husband, Serta, and her stepson, Clint, had sued California-based Herbalife, alleging it breached contracts and unsuccessful to follow along with its rules in identifying royalties and regulating its distributors' systems. That cost them huge amount of money in lost bonuses and potential earnings, the household stated in the civil lawsuit.

Jurors also granted Serta Fallow $22,500 in damages on his claim that the organization unsuccessful to pay for him for any "sting" operation he stated he carried out against European counterfeiters of Herbalife items. Fallow contended within the lawsuit he had assisted Herbalife fight the counterfeiters in return for favorable management of his wife's and son's distributorships, but that the organization reneged around the deal.

That failure on Herbalife's part cost Mary Fallow $470,000 in bonuses and royalties since 1992, Fallow attorney Thomas Littler had contended, making up the majority of Monday's jury award.

Mary Fallow had searched for future damages, that could have sent the award in to the huge amount of money, Littler stated. Jurors declined that request, but giving her the authority to her old distributorship might make up for this, he stated.

Littler had contended throughout closing arguments a week ago that the organization didn't follow or evenly enforce its rules. Monday's verdict transmits a note to the organization that "if one makes a contract, meet it," he stated.

Herbalife's chief counsel, Bob Sandler, known as the guidelines problem a "red-colored sardines" within the case. He stated the business's rules are identical ones then other large multilevel marketing companies, which the jury was supportive to Mary Fallow like a mother trying to support her family.

Jurors on the sides with Herbalife on a number of its counterclaims within the suit. Serta and Clint Fallow were purchased to pay for $61,000 to Herbalife for breaking its rules against dual distributorships, and also the company's request to terminate its relationship with Clint Fallow was granted.

Mary Fallow stated the verdict means she'll finally get checks from sales by her "network" of marketers after 2 1/24 months of no earnings and mounting financial obligations.

Herbalife appeals the case, defense lawyer Matt Hodel stated.