Frequently Asked Questions

  1. Why did I receive a notice?

    If you received a notice by email or postcard, you were identified as an individual residing in the United States who qualified for units in the ViSalus Founders' Equity Incentive Plan ("FEIP") between January 1, 2015 and March 1, 2017. If so, you are a member of the Settlement Class and are entitled to benefit from the Settlement, provided that you did not exclude yourself from the Class.

    The Court in charge of this class action is the United States District Court for the Eastern District of Michigan, Judge Matthew F. Leitman presiding, in Harris, et al. v. ViSalus, Inc., et al., Case No. 4:17-cv-12626 (E.D. Mich.). This Court has ordered a Notice of Class-Action Settlement be delivered to members of the Settlement Class.

    You may review a copy of the Notice here.

    Back To Top
  2. What is this lawsuit about?

    Plaintiff sued the defendants claiming Visalus's offering of the FEIP violated federal securities laws and similar statutes. The defendants vigorously denied these allegations and contend that they have no merit because Visalus's FEIP fully complied with all applicable laws and legal standards. The Court expresses no opinion on the merits of the parties' respective positions, and neither this website nor the fact of the agreed Settlement should be understood to reflect on the merits of the parties' respective positions.

    The defendants include ViSalus, Inc., Nick Sarnicola, Ashley Sarnicola, Ryan Blair, Blake Mallen, Todd Goergen, Gary J. Reynolds, Vincent Owens, Kevin Merriweather and Michael Craig. All deny any liability to the class.

    Back To Top
  3. What is a class action?

    In a class action, one or more individuals are the class representatives who sue on behalf of a class. Once a court resolves the issues for the class representatives or approves the Settlement for the class, it resolves the matter for all class members, except for those who request exclusion by opting out. Here, the class action was filed by class representative Eric J. Harris, Sr. Mr. Harris consulted with Class Counsel throughout the litigation of the case and approved the Settlement. He spent many hours that were not required of other Class Members. For his effort on behalf of the Class, Class Counsel asked the Court to award Mr. Harris an incentive payment of $15,000.

    Back To Top
  4. How do I know if I am part of the Settlement?

    On June 14, 2019, the Court certified the following Settlement Class:

    All U.S. Independent Promoters ("IPs") of ViSalus, Inc. ("ViSalus") who qualified for units in the Founders' Equity Incentive Plan ("FEIP").

    Excluded from the class, even if they meet the criteria above, are:

    1. Defendants, and any IPs owned, controlled or otherwise affiliated with any Defendant other than merely by the IP's status as an IP;
    2. IPs who are named defendants, or who are owned, controlled, or otherwise affiliated with named defendants in the Kerrigan et al. v. ViSalus , Inc., et al., Case No. 2:14-cv-12693 ("Kerrigan Action") other than merely the IP's status as an IP;
    3. The presiding judge(s) and his or her (or their) immediate family;
    4. Any individual that elected to be excluded from the Settlement Class; and
    5. Any person who has previously released claims against Defendants or whose claims have been fully and finally adjudicated by a court with jurisdiction over the claims.

    If you received a notice by email or postcard, you were determined to meet the definition of a Settlement Class member based on ViSalus's records.

    Unless you excluded yourself, you will be part of the Class, and you will be bound by the release of claims in the Settlement. This means that now that the Settlement has been approved, you cannot sue, continue to sue, or be a party of any lawsuit against ViSalus, the defendants, or the other Released Persons asserting a "Released Claim," as defined below. It also means that the Court's Order approving the Settlement and the judgment in this case now applies to you and legally binds you.

    The "Released Claims" that you are no longer able to assert includes any manner of actions, causes of action, suits, accounts, claims, demands, controversies, judgments, obligations, injuries, damages and liabilities of any nature, whenever or however incurred, including claims for costs, fees, expenses, penalties, and attorney's fees, whether class or individual, known or unknown, suspected or claimed, that Plaintiffs or any Class Member ever had, now has, or hereafter can, shall, or may have, directly, representatively, derivatively, or in any other capacity against any of the Released Persons, whether in law or equity or otherwise, arising out of or relating to any conduct, act, or omissions of any of the Released Persons related to the conduct or similar conduct alleged or that could have been alleged in this litigation including, but not limited to, any actions for fraud, securities fraud, misrepresentations, violations of 18 U.S.C. §1962(c) and (d), consumer fraud, negligence, unjust enrichment, breach of contract, or other conduct or omissions relating to the IP Program, the Founders' Equity Incentive Program, or payments related thereto; or Plaintiffs' and Class Members' transactions and interactions with Defendants relating to their status as IPs or FEIP participants.

    Back To Top
  5. Do I have a lawyer in this case?

    Yes, if you remain in the Class. The Court has appointed these attorneys and their respective firms to act as Class Counsel:

    Class Counsel
    Andrew Kochanowski
    Lance C. Young
    Sommers Schwartz, P.C.
    1 Towne Square
    Ste. 1700
    Southfield, MI 48076
    www.sommerspc.com
    Matthew Prebeg
    Prebeg Abbott & Faucett, LLP
    8441 Gulf Freeway
    Ste. 307
    Houston, TX 77017
    www.pfalawfirm.com
    Edward Wallace
    Mark Miller
    Wexler Wallace LLP
    55 W. Monroe St.
    Suite 3300
    Chicago, IL 60603
    www.wexlerwallace.com

    More information about these attorneys and firms is available on their websites or by calling 1-855-543-5392 toll-free. As part of the Settlement, Class Counsel will be applying for an award of their fees and expenses of up to $115,000, which is subject to approval by the Court. ViSalus has agreed to pay the fees and expenses awarded by the Court in an amount not to exceed $115,000, but ViSalus and the other defendants take no position on any such award of fees and costs or how it should be allocated among Class Counsel. You will not be directly charged for the services of Class Counsel. However, if you want your own lawyer, you may hire one at your own expense.

    Back To Top
  6. What is the status of the case?

    After substantially denying Defendant's motions to dismiss Plaintiff's claims for violations of the federal securities laws and after the completion of some discovery and information exchanges, the parties agreed to mediate the case which eventually led to the Settlement. Although both the plaintiffs and the defendants continue to believe in the merits of their respective cases, they agreed that compromising the claims under the terms of the Settlement is in the best interests of the defendants and the Class.

    The Settlement provides that every Class Member that remains part of the Class will receive certain benefits, including an opportunity to make more money by selling Visalus's products to new customers. Alternatively, Class Members may have elected to terminate their relationship with ViSalus and receive a cash payment.

    Judge Matthew Leitman granted final approval to this Settlement on October 1, 2019, and the Settlement Administrator mailed Settlement checks to Class Members electing to terminate their relationship with ViSalus and receive a cash payment on November 22, 2019. The deadline to elect a cash payment was August 28, 2019. All other Class Members, excepting those who timely requested exclusion, automatically received the Benefits Option (see FAQ 7).

    Back To Top
  7. What are the Cash Option and Benefits Option?

    Benefits Option:


    Under the terms of the Settlement, you may do nothing and be automatically enrolled in the Benefits Option. Under the Benefits Option, each participating Class Member will retain all rights to receive or own Units under the FEIP and will also receive the following benefits from ViSalus:

    1. 25% Commission Rate on all sales (both first time sales and subsequent sales) personally made by the Class Member to customers who purchase product from ViSalus for the first time after final approval of the Settlement (i.e., new customers) for one (1) year from final approval of the Settlement ("Final Approval");
    2. Free re-enrollment as an IP on the Basic enrollment track (no purchase necessary) for one (1) year from Final Approval;
    3. Free event registration for one (1) event, if any are held within one (1) year from Final Approval, and if none are held within one (1) year, then free event registration for the next held event, if held within eighteen (18) months from Final Approval;
    4. Free Vi-Net Pro Subscription for:
      1. One (1) year from Final Approval for all Settlement Class Members who choose the free re­-enrollment listed in Section 7(b) above and who previously paid for Vi-Net Pro; or
      2. Six (6) months from Final Approval for all Settlement Class Members who choose the free re-enrollment listed in Section 7(b) above and did not previously pay for Vi-Net Pro.

    In addition, Benefits-Electing Class Members shall continue to receive any other compensation benefits to which they may be entitled under their existing IP program.


    Cash Option


    Alternatively, certain Class Members were eligible to elect the Cash Option. Class Members who achieved the rank of National Director (ND), Executive Director (ED), or Presidential Director (PD) for the first time during the time the FEIP was offered may elect to receive a cash payment by check of $1,500. Class members who achieved the rank of Ambassador or higher for the first time during the time the FEIP was offered may elect to receive a cash payment of $4,000. The maximum amount to be paid out under the Cash Option to all electing Class Members is $285,000, and each claim is subject to possible reduction depending on the number of Class Members choosing the Cash option.

    Class Members who elected the Cash Option shall be terminated as IPs and will no longer be eligible to receive compensation or benefits as IPs.

    If you are eligible and wished to elect the Cash Option, you must have completed and submitted the Election Form on or before August 28, 2019.

    Back To Top
  8. Where can I find information about the Settlement?

    You may find additional information about the case (including the plaintiff's Complaint, the defendants' motions to dismiss the Complaint, and the full Settlement Agreement and Release) on this website here. If you have questions, you should first contact the Settlement Administrator at 1-855-543-5392 (recorded information only) or by writing to Harris v ViSalus, Inc. Settlement Administrator, P.O. Box 3230, Portland, OR 97208-3230. If the Settlement Administrator cannot answer your question, you may contact Class Counsel. Please do not contact the Court.

    Back To Top
  9. What if I want to exclude myself from the Settlement?

    If you do not want to participate in the Settlement, you must have sent a signed letter to the Settlement Administrator requesting exclusion on or before August 28, 2019. If you excluded yourself, you will not get any of the benefits of the Settlement, you will not release your claims, you will continue to be a ViSalus IP, and you will maintain any rights you may have to bring your own proceeding if you so choose. Your request for exclusion should have included your name, address, signature, and ViSalus IP number if known.

    The deadline to request exclusion passed on August 28, 2019.

    Back To Top
  10. What if I want to object to the Settlement?

    Any Class Member who wishes to object to the Settlement must have filed a written objection with the Court and served copies of the same on Class Counsel and counsel for ViSalus. If the Class Member wishes to appear before the Court at the Fairness Hearing, he or she must have stated so in the written objection.

    The last date for Class Members to object to the Settlement and file a notice of intention to appear at the Final Approval Hearing was August 28, 2019.

    Back To Top
  11. Why did I receive a Settlement check?

    Settlement Checks were issued on November 22, 2019, pursuant to the terms of the Settlement Agreement. If you received a check, you timely elected the Cash Option. Cash Option amounts vary—the amount printed on the check is the full amount to which you are entitled based upon the terms of the Settlement.

    Back To Top
  12. Why didn’t I receive a Settlement check?

    Settlement Checks were issued on November 22, 2019, pursuant to the terms of the Settlement Agreement. If you did not receive a check, you did not timely elect the Cash Option, are not a Class Member, or are a Class Member ineligible to receive the Cash Option. Only Class Members who achieved the rank of National Director (ND), Executive Director (ED), Presidential Director (PD), or Ambassador or higher for the first time during the time the ViSalus Founders’ Equity Incentive Plan (FEIP) was offered are eligible to elect the Cash Option.

    Back To Top
  13. How was my Settlement check calculated?

    The amount of the payment was determined based on the terms of the Settlement Agreement, including whether you were an IP (Independent Promoter) who purchased at least one month of ViSalus ViNet Pro web services during the class period (January 1, 2015 to March 1, 2017).

    Back To Top
  14. What are the tax implications of receiving a Settlement payment?

    Pursuant to the Settlement Agreement, each Class Member’s tax obligations, if any, are the responsibility of the Class Member. The tax consequences may vary depending on the particular circumstances of each individual Class Member. You should contact a tax professional to help you understand the specific tax implications of your Settlement payment.

    Back To Top
  15. Can I dispute the amount of my Settlement check?

    Settlement payments are final, with no option to appeal. The deadline to object to the Settlement was August 28, 2019.

    The amount of your Settlement payment represents the amount to which you were entitled under the terms of the Settlement Agreement. The Court approved the Settlement, including the methodology used to compute the amount of Settlement payments, at the Final Approval Hearing on October 1, 2019.

    Please negotiate the check promptly. The check is only valid for 120 days from the issue date.

    Back To Top
  16. I lost/damaged my Settlement check, how can I receive a replacement check?

    Requests for replacement checks must be in writing, and signed by the requester. If the requester is not the payee of the original check, please see FAQ 17. Please mail your signed, written request for a check reissue, along with the original check, to:

    Harris v ViSalus, Inc. Settlement Administrator
    P.O. Box 3230
    Portland, OR 97208-3230

    If you are unable to return the initial settlement check, for the protection of the Settlement Fund, a replacement check can only be issued to you after the initial settlement check passes its stale date. Your replacement check could be issued sooner if the initial check returns to the Settlement Administrator as undeliverable, or if you are able to locate and return the check to the Settlement Administrator.

    Back To Top
  17. How can I have my Settlement check reissued under a new name?

    First, please go to a financial institution where you are a current account holder as they may negotiate the settlement check if the documentation regarding the status of your name change is presented.

    If the financial institution will not accept the check, please return the original check, accompanied by a signed written request asking that a replacement check be issued and mailed to you, to the Settlement Administrator at:

    Harris v ViSalus, Inc. Settlement Administrator
    P.O. Box 3230
    Portland, OR 97208-3230

    Please include instructions for the name that should be included on the replacement check and include a copy of a form of identification that contains the new name.

    Back To Top
  18. Can you update my address and re-mail my Settlement check?

    To request a replacement check mailed to an updated address, please include a signed written request asking that a replacement check be reissued and mailed to you. Include your current and former mailing addresses in your request. Please mail your replacement check request, along with the original check, to the Settlement Administrator at:

    Harris v ViSalus, Inc. Settlement Administrator
    P.O. Box 3230
    Portland, OR 97208-3230

    If you are unable to return the initial settlement check, for the protection of the Settlement Fund, a replacement check can only be issued to you after the initial settlement check passes its stale date. Your replacement check could be issued sooner if the initial check returns to the Settlement Administrator as undeliverable, or if you are able to locate and return the check to the Settlement Administrator.

    Back To Top
  19. What if the person on the Settlement check is deceased?

    First, please go to a financial institution where you are a current account holder as they may negotiate the settlement check if documentation regarding the status of the claimant and your status as the beneficiary/executor is presented.

    If your financial institution will not accept the check, please provide the Death Certificate of the person on the settlement check, as well as documentation of your legal authority to file on behalf of the Claimant(s), for example, Orders of Estate or Letters of Administration.

    Send all documents, along with the original check, to the Settlement Administrator at:

    Harris v ViSalus, Inc. Settlement Administrator
    P.O. Box 3230
    Portland, OR 97208-3230

    Back To Top