Vemma Reaches Settlement Agreement With The FTC
Vemma, as top distributors Tom and Bethany Alkazin have reached a settlement with the FTC in the case the agency filed more than a year ago.
While details of the settlement have not yet been disclosed, court documents state that the company and its CEO BK Boreyko as top distributors Tom and Bethany Alkazin have agreed to a permanent injunction and monetary judgement.
As legal costs mounted to well over $1 million, Vemma and Boreyko had an additional court battle with their insurance company Hanover.
In April, Hanover Insurance filed a complaint against Vemma and Boreyko seeking a court declaration that it was not required to pay the legal costs because, the insurer contended, it was not properly notified about previous allegations that arose years earlier.
While the court held in July that pending the outcome of the case, Hanover would not have to pay for Vemma’s legal fees, but would have to pay for Boreyko’s, the parties reached a settlement. According to documents filed in court, Vemma and Boreyko agreed to a settlement in favor of Hanover.
After the FTC action, Vemma, which was once operating in 50 countries and had $200 million in annual sales, shut down operations worldwide. The company is now operating in the U.S. and Canada.
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