Duggins Wren Mann & Romero partner Rob Linkin (along with co-counsel Austin Tighe of Nix Patterson and David Rowe of DuBois Bryant & Campbell) have filed a class action against multilevel marketing company Young Living Essential Oils on Friday on behalf class representative Julie O’Shaugnessy.
The complaint, filed in federal court in the Western District of Texas on April 12th, alleges Young Living recruits members with the promise that in exchange for regular monthly payments, new recruits can make “spiritual and material riches” selling essential oils “for quasi-medicinal purposes.” In truth Young Living is an unlawful pyramid scheme — the cornerstone of which is Young Living’s emphasis on new member recruitment over the sale of products.
The complaint notes that the scheme is maintained in part by Young Living’s “fantastical” cult like culture, which revolves around the “self-authored mythology” of the company’s founder, who died in 2018. By the time she realized she was being victimized, O’Shaughnessy had purchased more than $4,700 worth of product and earned a mere $385, leaving her with what she guesses to be two to three years worth of essential oils, according to the complaint.
Counsel for O’Shaughnessy, told Law360 Young Living fits the mold of a “classic pyramid scheme” that the Fifth Circuit holds to be inherently certifiable as a class action.
For more information, see https://www.law360.com/articles/1149712/recruit-says-cultlike-essential-oil-co-is-a-pyramid-scheme
Rob Linkin’s practice focuses on complex litigation matters, including securities arbitration and litigation, class action litigation (including multi-district litigation) and complex business litigation. Rob has also developed an active entertainment practice, primarily representing independent labels and recording artists. Rob has extensive expertise in investor claims, business disputes, investment fraud and stock broker misconduct. Rob’s practice includes FINRA and AAA securities arbitration matters and matters arising from the break down in complex financial industry relationships.