- Ad watchdog truthinadvertising.org filed a brief yesterday with the U.S. District Court for the Central District of California opposing Herbalife's (HLF -1.7%) proposed $17M settlement of a class-action lawsuit filed in April 2013 by a former distributor. A tentative settlement was reached in October 2014 whereby the company would pay $17M to resolve the action and prevent the ~1.3M class members from ever suing it again.
- Last month, the plaintiffs stated that they intended to oppose the settlement as well. Attorney Douglas Brooks claims that at least $100M is necessary to adequately compensate the class.
- If the proposed settlement goes through, most class members would receive no more than $20 each, while attorneys who negotiated the deal would pocket $5.25M. A hearing on the proposed settlement is scheduled for May 11.
- Previously: Former distributors reject Herbalife proposed settlement (Feb. 17)