The FTC filed a motion on July 27th to postpone their trial against Neora by three weeks. The request was denied by the court on August 5th, which means that if no agreement is reached, the parties will go to trial.
The FTC requested a postponement. due to pressure on an already tight pre-trial timeline caused by frequent extensions to the summary judgment briefing deadline and hearing date.
As a result of the extensions, the parties’ pre-trial documents, which were previously due on September 19, will now be presented nine days before the Court hears oral arguments on the parties’ applications for summary judgment on September 28.
It follows that the parties will be required to file updated versions of their pre-trial documents that take the Court’s summary judgment decisions into account, as well as new pre-trial orders, witness lists, exhibit lists, deposition designations, findings of fact, and legal conclusions.
The new materials would need to be filed in a maximum of nineteen days under the current schedule that would separate any summary judgment decision from trial. Thus, the FTC asks for a brief extension to ease scheduling problems brought on by the most recent extensions, but no longer.
The trial was to proceed as planned once the court issued its order without fuss. A bench trial in this case will start on October 17, 2022, at noon.
It will proceed in accordance with the trial schedule that is attached. A total of 20 hours will be allotted to each side, including opening remarks, direct and cross examination, and closing speeches.
The FTCnotes says Neora (previously Nerium) is a pyramid scheme in its case, which was filed back in 2019.
The FTC enters the trial with the knowledge that even if they prevail, Neora and owner Jeff Olsen (right) won’t be required to compensate their victims.
Although this is unknown ground, I believe the FTC is at most considering an approved injunction. As a result, Neora will be compelled to cease operating as a pyramid scheme.
Vemma reached a similar settlement in their FTC complaint. Vemma as a company was never able to function as a pyramid scheme.
Alternatively, Neora wins the case and is allowed to keep hurting customers. According to the FTC, less than 1% of Neora’s sales revenue can be attributed to retail sales.
Additionally, the FDA asserts that more than 95% of Neora distributors incur monthly losses. This is due to a business plan that, as discussed, focuses on acquiring distributors for autoships.
A settlement may still be in the works despite numerous failed attempts over the years.
The court sent the matter to mediation on August 9