YTB Class Action Denied – AGAIN!
In 2008 a group of “ambulance chasers” filed a Class Action suit against YTB International in an attempt to cash in on California’s claim that YTB was nothing more than a “gigantic pyramid scheme”. The Class filed an absurd suit stating that YTB “operated an illegal pyramid sales scheme and employed an illegal chain referral sales technique in violation of the Illinois Consumer Fraud and Deceptive Business”. The complaint was filed in an attempt to “recover money illegally obtained” by YTB to the tune of $100 million.
Not a bad return for only 8 months of work on average per defendant. (Two in the Class only dabbled in YTB for 4 months before calling it quits.)
When California filled it’s Civil Case against YTB back in August, 2008 – opportunists saw California’s “accusations” as a way to justify their own failures and short lived carriers with YTB. As a result, zealots and cynics of YTB cheered with amusement over the apparently insurmountable odds that were slapped down on YTB.
Fortunately, (or unfortunately if you’re a critic of YTB) the legal process isn’t nearly as gullible or willing to allow mere perception or beliefs override or dictate right from wrong. If you’re going to file a lawsuit in any court of law – you best have all your ducks in a row.
I haven’t followed many Class Action cases. In fact, none other than the current Class Action come to mind. This Class however, has been a real eye-opener on what NOT to do when filing a lawsuit.
It’s proven to be one colossal misstep after another – a massive amount of disrespect towards authority – and an intolerance to actually learn from past mistakes.
If there’s one thing I’ve learned about zealots and cynics of Network Marketing and especially YTB it’s this:
They’re right – you’re wrong – and there is no amount of evidence, documentation, or legal precedence that can be produced to convince these dolts that their barking up the wrong tree.
Their defense is always the same. Keep barking over and over in an attempt to exhaust the opposition of time, money and/or patience.
What’s even more astonishing about their illusions and phobias surrounding the Network Marketing and MLM industry is their obsession has no boundaries. As if the laws of our land will magically realign if they simply repeat or chant their limiting and unfounded beliefs over and over again.
What happens as a result?
The $100 million Class Action filed two years ago has been pulverized, beaten, and obliterated by the Courts turning the entire lawsuit into a very amusing joke for this writer to expose as a proud member of YTB.
The Courts have also exposed this ordeal with the following statement in its latest analysis and ruling filed last week, May 13, 2010.
“In fact, pursuing discovery in the hopes of turning up something that may lead to a lawsuit seems to the Court to be the very definition of a fishing expedition.”
Nothing like calling a spade a spade now is there?
What’s even more amusing about this suit is how the Plaintiffs appear to have the attitude that Class Action lawsuits are like cats who have nine lives. When slaughtered, simply refile an amended suit for reconsideration. There have been five rulings over the last two years which the Court has denied on separate occasions – and instead of calling it quits – Plaintiffs simply come back for more.
After the First Amended Consolidated Complaint was stricken from the record and dismissed on June 5, 2009 – Plaintiffs considered the dismissal nothing more than a “first draft”. An amended complaint was conjured up just days later; this time even more brazen and bold than the first. While critics labeled the complaint “powerful” I had my own views on the subject. I outlined how the Plaintiffs in this case were just as clueless as the critics who have been plastering “pyramid scheme” all over the internet for years.
To add insult to injury, the Honorable Patrick Murphy would not only agree with my views just days later – but add the words “redundant, immaterial, impertinent, and scandalous matter” as an exclamation point to the amended filing on June 20, 2009.
I’ve heard it said that a dog only needs his snout smacked just a few times before it sticks his tail between his legs and whimpers away. Critics and Zealots? They appear to be a completely different breed all together. They get smacked and have the audacity to bark back at the individual who laid down the law.
On the very slimmest of margins, Plaintiffs refiled an adaptation of the First Complaint in December, 2009 – complete with all the trimmings the Court had denied several times prior. If it couldn’t pass muster the first time, I don’t know what possessed them to refile again – other than pure ego or stupidity. (Most likely, a combination of both.)
As a result, the Plaintiffs third attempt has once again been denied.
How pathetic – yet strangely riveting at the same time. They just can’t learn anything new – or consider the fact that their perceptions and beliefs just might be the ones that are wrong. Oh the humanity!
What makes this especially gratifying is that zealots have finally hit a wall they can’t slither under, over or around. Perceptions and mere words in the Court of Law are meaningless at this point. That’s really all they’ve ever had when it comes down to it. When faced with having to do things “by the book” they’ve wound up bloody and beaten like a drum. Exposed as scandalous and nothing more than a “me too” type suit to extort money as greedy bastards themselves.
All in the name of this fantasy – or phobia – about Network Marketing being a “pyramid scheme”.
Give me a break.
You won’t find much about this case anywhere else. Since all the teeth and therefore the fear has been pulled out of this suit, there’s not much to write about. The media needs something far more meaty, and zealots are left with more egg on their face – so they’ll just ignore it.
For the rest of us who actually like to educate ourselves to become better business minds and responsible citizens; we use this example to learn and grow. You’ve heard it said that success leaves clues. We’ll in some cases like this one – so does failure.
That’s why we are never denied the last laugh.
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Tags: Anti-MLM, Critics, Pyramid Scheme, YTB Illinois Class Action
May 24th, 2010 at 7:17 am
According to YTB’s most recent report to the SEC, this class action is still in play. The foreign (out of state) defendants have been dismissed, but it is still proceeding in Illinois with the plaintiffs who are residents.
By order entered April 19, 2010, the Court granted in part and denied in part a motion to dismiss brought by Defendants YTB International, Inc., YourTravelBiz.com, Inc., YTB Travel Network, Inc.,YTB Travel Network of Illinois, Inc., J. Lloyd Tomer, J. Scott Tomer, J. Kim Sorensen,Andrew Cauthen, Meridian Land Company, Winfield Development, LLC, CCMP, Inc. (“CCMP”),Timothy Kaiser, M.D., Clay O. Winfield, and Robert Van Patten. In the April 19 order,the Court ruled that, as non-residents of Illinois, Plaintiffs Faye Morrison, Kwame Thompson,Jeffrey Hartman, Polly Hartman, JPH Development, Inc., Grace Perry, and Courtney Speed cannot maintain claims under the ICFA; accordingly, the Court dismissed the claims of those Plaintiffs.
Granted, this is good news for YTB, but a bit premature to say that the class action has been denied.
And yes, I have said many times that I thought the two initial filings were powerful and strong. A judge disagreed. As you well know, when you go into court, it can go one of two ways–yours or theirs. Even when you feel you are right, a judge may rule the other way.
I still believe YTB is a sham, scam and a loser for 99.9% of the people who are roped into it. I have stood by that assertion for many years and not waivered.
But now it seems that you may not be the man of your own convictions. YTB apparently was not the end-all that you “knew” it to be when you “left corporate America” 6 years ago.
Let’s let this case play out. Let’s let the Illinois Attorney General case play out. They could go either way. I guess the challenge is will YTB be able to collect enough new recruits to sustain the people at the top. THey have a serious cash problem and if it weren’t for the refund of the credit card escrow (because recruiting was so down) they would be very close to being out of cash.
May 24th, 2010 at 1:35 pm
LOL! You keep trying to justify your position John – that’s about all your good at.
PS – Sorry I pissed you off last week. (But you keep on opening that yap and leaving yourself wide open.)
June 16th, 2010 at 6:07 am
[...] the the $100 million Class Action filed two years ago has been pulverized, beaten, and obliterated by the Courts turning the entire [...]