Visalus Hit With Lawsuit After Failing To Pay Dividends To Affiliates
In the last few weeks, Visalus has been getting a lot of attention in the network marketing circles.
With all this hype, I am sure you have seen some of your friends trying to sell Visalus in your social media feeds. Or maybe you’ve heard that they have not been paying their affiliates their dividends?
The first thing you need to know is that I am NOT an affiliate or distributor for Visalus.
I wanted to gather all the information about Visalus in my Visalus Review in order for you to make a decision about joining Visalus.
Is Visalus legit or a scam?
Will it be able to deliver on it’s promises to you?
Let me show you in my unbiased review of Visalus.
Read on to find out what you need to know.
What The Heck Is Visalus?
If you’re a shareholder in Visalus Sciences, chances are you’re currently rather infuriated with the company.
Recently, Visalus tried to back-pedal on agreements it made with affiliates that had invested in the company’s “Founders Equity Incentive Plan” that qualified them to earn for two years.
Visalus and a top affiliate from the company was recently it with subpoenas by Colorado’s Securities Division, and this latest move from Visalus is thought to be a response to this. That doesn’t make it any less dirty/sneaky, but it at least gives us some context to work with.
This securities investigation was first launched following the filing of a complaint from a currency Visalus affiliate — Caprece Byrd. Another lawsuit was filed against Visalus just two weeks after this initial one, and here, Byrd claims that she and over a thousand some other members of Visalus were tricked by the corporate Visalus team into the ongoing investment scheme.
Between the two weeks of the subpoenas being filed and the lawsuit being handed onto them, the corporate team at Visuals set up a shareholder meeting. During this meeting, members were informed that they would receive “legal documents to kind of formalize their status as shareholders.”
As you might expect, this came as somewhat of a surprise to affiliates that were part of the Visalus Founders Equity Incentive Plan who were under the impression that they had been qualified shareholders already for two years’ time.
Nevertheless, on August 31 of this year, Visalus issued a new “Amended and Restated Founders Equity Incentive Plan.” In addition to this, the company also released a revised “Performance Agreement.”
If affiliates that were already part of the Equity Incentive Plan and wanted to retain that status of theirs, they were told that they needed to sign these new documents that had just been given to them.
There are numerous clauses throughout the new documentation that raises a lot of eyebrows, and what’s worth noting is that none of this information was made aware to affiliates who previously handed over thousands upon thousands of dollars in order to have access to the incentive plan.
With that said, here are some of the more interesting tidbits from Visalus’s new documentation:
- The Visalus Founders Equity Incentive Plan does not sell stock
- Any and all equity shareholders are required to have an active affiliate status within the company though 2020 if they wish to qualify as shareholders for Visalus
- Visalus has the right to both increase and decrease the quantity of shares being offered in the Founders Equity Incentive Plan
- Visalus has the right to take an affiliate’s share and forfeit them upon termination for any reason whatsoever
- Visalus can call for a required arbitration through whichever jurisdiction that the company decides to choose
According to Byrd’s attorneys, class members “now believe that the only way they will ever see their investment, is to sign any documented place in front of them.”
On top of the information I just went over, it was also noted that Visalus removed a bit of copy that recommends shareholders to get legal advise from a professional before signing any documents from the company.
Byrd filed for an emergency motion on September 13 (this month), and with that motion, Byrd asked that the court:
- Stop Visalus from contacting any other members that will potentially be involved with the lawsuit without first getting approval from the court
- Mandate Visalus to properly file/organize any and all communications that have been approved by the court
- Require Visalus to ID any members that do agree to the new terms/documents
- Have Visuals email all equity shareholders and let them know about the “pending Complaint affecting their legal rights in the acquisition and ownership of ViSalus equity”
- And more…
Judge Leitman officially granted this emergency motion a couple days later on September 15, and this stops Visalus from sending out new documents to equity shareholders and excludes any documents that have been signed after September 14.
Visalus currently has until September 28 to issue an official response, and after this date, the motion in the court will then be revisited for further action.
The main problem in this case is that Visalus has been telling shareholders for two years now that they were completely and totally qualified for stock/dividend payouts starting this April.
Affiliates have yet to see any of that money, and they’re now having to turn to the court to get Visalus to act.
Visalus certainly has quite the mess on its hands at the moment, so stay tuned to find out what happens from here.
So, Is There A Visalus Scam Going On?
Have you been hearing rumours that Visalus is a scam?
After reading this review, you might still be asking yourself if it is really legit.
So – what is the truth? Is there really a Visalus scam going on?
If I am being perfectly honest, Visalus isn’t entirely a scam.
However, there are some things you need to watch out for.
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Finally, My Visalus Review And Conclusion!
I really hope you have gained value from my Visalus Review.
I wanted to make sure you had all the information you needed, because most other Visalus reviews are just trying to sell you something.
If you really do decide to join Visalus, I want you to succeed with your business. Learn how to market yourself properly!
My training can help you make money online!