Nerium International Accused of Operating Illegal Pyramid Scheme

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Nerium International, LLC, Nerium Skin Care, Inc., Natural Technology, Inc. (which does business as NaturTech), and five Nerium executives are facing claims that the parties are operating an illegal pyramid scheme. In a proposed class action lawsuit filed in August, two former “Brand Partners” allege that they began working for Nerium based on the company’s promises of “riches, wealth, and gifts,” but instead lost money attempting to sell Nerium’s skin cream product. According to the suit, members of the defendants’ business are rewarded for recruiting other members into the pyramid rather than for selling product, with most allegedly earning less than minimum wage. From the complaint:

"Characterized by some of its former employees as a scam and a cult, Nerium touts that it has generated one billion dollars in cumulative sales after just four years.  These sales are based on the recruitment of new brand partners into the pyramid scheme that Nerium has amassed."

Furthermore, the plaintiffs claim they were unable to sell Nerium AD skin cream because it “smelled bad and did not provide the health benefits marketed.” According to the suit, the defendants' claims that the product would “dramatically” improve the appearance of a person’s skin and even promote brain function “have not been validated or confirmed.”

The suit notes that the defendants have settled 400 lawsuits in Missouri alone.