According to the Complaint, LifeVantage sells distributorships which Defendants market as the business opportunity using sales pitches promising wealth and business independence. Defendants’ compensation program encourages distributors to recruit others into the system with the same promises of wealth and business independence. Distributors pay money to participate in the business opportunity, which funds LifeVantage’s payments and bonuses to other distributors. Despite LifeVantage’s claims of retail sales, little money comes in to the system from actual retail users of LifeVantage products. Instead, it is believed that the majority of the company’s retail sales are monthly sales made to distributors who purchase LifeVantage’s products mainly in order to participate in the compensation program and remain eligible to receive bonuses.

The Complaint alleges that LifeVantage and the Officer Defendants are operating an illegal pyramid scheme in violation of the federal Racketeer Influenced & Corrupt Organizations (RICO) Act, federal securities laws, and the Connecticut Unfair Trade Practices Act.

On August 6, 2018, this case was transferred to the District of Utah. Plaintiffs filed an amended Complaint on September 20.