MLM, Visalus, IPO Pulled Off the Market, Questions Raised
The MLM, Visalus Sciences, that also sells diet products and is a subsidiary of the MLM, Blyth Industry (BTH), suddenly began to show 500% growth, caused largely by a massive recruitment drive based on promises of income and that drew thousands of income-seeking consumers from other MLM companies. Leveraging its extraordinary revenue growth, Blyth announced a $175 million stock offering to the public (IPO). Prominent and respected business news media figures raised red flag warnings about this investment offering, noting that “In its simplest form, ViSalus is in the business of selling product to distributors.” Blyth then abruptly and inexplicably, withdrew the stock offer. Blyth Industry stock plunged 20% in one day. In the following quarter, sales, recruiting and revenue of Visalus declined.
A comprehenisve Analysis of Visalus, has been researched and ppublished by award-winning business writer, Roddy Boyd the Southern Investigative Research Foundation.
The text of the complaint of a new class action lawsuit serves as a critical document for revealing the deception that pervades multi-level marketing, camouflaged with rhetoric about “direct selling.” The text of the complaint paints a vivid picture of a major MLM, called Visalus, complete with video links and color photos. The suit was filed by the law firms, Sommers Schwartz in Southfield Michigan, Prebeg, Faucett & Abbott in Houston and Wexler Wallace in Chicago, which are also suing the “engergy” MLM, Stream/Ignite.