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Herbalife Distributor Sues 'Up-Line Distributor' for Selling Dangerous Products in Unprecedented Action

Wednesday, June 18, 2008 General News
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OAKLAND, Calif., June 17 In an unprecedented legal action,Dietary Supplement Safety Committee Co-Founder Christopher Grell, has expandedthe scope of a recently filed law suit against Herbalife Ltd. (NYSE: HLF) inwhich the company has been accused of fraud and product negligence by adding anew category of defendants; specifically the plaintiff's direct 'up-linedistributor,' Ms. Yucong Chen.
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The plaintiff was recruited into the Herbalife multi level marketingbusiness opportunity and subsequently became the 'down-line of Ms. Chen. Thenewly named defendant also earned commissions on products purchased by theplaintiff through Herbalife.
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"And she is not the only distributor we will file suit against," promisedMr. Grell. "Multiple 'John Doe' defendants who were the 'up-lines' of myclient and Ms. Chen will be continually added to the suit as defendants as thediscovery portion of the case moves forward" added Grell.

Part of the legal standing for the expansion of the law suit to includedistributors as well as the manufacturer (Herbalife) can be seen in theHerbalife standard distribution agreement that Herbalife requires alldistributors to sign and an FTC Consumer Alert that clearly states: "If youdecide to become a distributor, you are legally responsible for the claims youmake about the company, its product and the business opportunities it offers"(http://www.ftc.gov/bcp/conline/pubs/alerts/pyrdalrt.shtm).

Additionally, a web site has been launched seeking any person residing inthe US who has been harmed or damaged by Herbalife products(http://www.herbal-lead.com) to fill out a brief, confidential, form forevaluation. The web site's objective is to provide a simple, easy to rememberweb site address and where victims are provided a potential vehicle forrecovery for the damage caused by various Herbalife products.

"Although I would argue that Herbalife distributors should have 'redflagged' the potential dangers inherent in the products they were sellingafter two independent, peer reviewed, medical journals linked the company'smost popular products to severe liver damage; recent publicity surroundinglead levels in Herbalife products exceeding those allowed under California lawwithout a warning label (Prop 65) virtually eliminates the potential for the'I did not know these products were dangerous' defense as these lead issueshave been widely covered by the media" Mr. Grell added.

The expanded suit to include Herbalife distributors and the launching ofthe victim web site were done in conjunction with one another to also promptboth current and potential Herbalife distributors to count the potential legalcosts of promoting products that appear to be out of legal compliance.

SOURCE The Law Offices of Christopher E. Grell
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