The FTC v. Success by Well being trial is more likely to be delayed. Jay Noland and his fellow defendants are usually not prepared for trial.
At time of publication the Success by Well being defendants haven’t filed a discover indicating their readiness for a Ultimate Pretrial Convention.
On November thirtieth one of many Success by Well being defendant’s attorneys filed a request for an extension to file movement, revealing the lead legal professional had knee alternative surgical procedure in early November.
They’re nonetheless recovering as of time of submitting, and are anticipated to return to work in full capability on or round December twentieth.
As per their very own November thirtieth readiness submitting, the FTC states it’s “prepared for scheduling a Ultimate Pretrial Convention”.
That stated, the FTC has requested the convention be delayed anyway, till
(1) the Court docket has dominated on the FTC’s Movement for Contempt Sanctions; and
(2) the events or the Court docket have resolved the problem of the Company Defendants’ illustration and/or the query whether or not the Court docket’s legal responsibility ruling in opposition to the Particular person Defendants applies to the Company Defendants.
The Movement for Contempt Sanctions clarification, pertains to holding Noland responsible for violating the beforehand granted NetForce injunction.
On June 23, 2021, the FTC filed its movement in search of a discovering that the Contempt Defendants violated the 2002 Noland Everlasting Injunction and a judgment of roughly $7 million in civil compensatory contempt sanctions.
A call on that movement stays pending. The FTC argues that
if the Court docket grants the Contempt Movement, it will virtually actually obviate the necessity for a trial on this matter.
If the court docket denies the movement, the FTC states the violation would ultimately result in a consolidated trial (decision of each the Success by Well being and NetForce issues can be resolved by means of a single trial).
The Company Defendant legal responsibility problem pertains to avoiding holding two trials; one for the person Success by Well being defendants, and one for the company defendants.
The FTC proposes avoiding these inefficient outcomes by permitting the events and Receiver additional time to fulfill and discuss with Particular person Defendants’ new counsel concerning the standing of the case as to the Company Defendants.
If the events can not agree, the FTC will file a movement requesting applicable reduction on or earlier than December 23, 2021.
There’s additionally an fascinating “scope of trial” problem introduced up by the FTC.
The FTC places forth that in granting legal responsibility abstract judgment,
the Court docket nonetheless discovered a “triable problem of fabric reality” concerning whether or not SBH was a pyramid scheme and whether or not Defendants had misled shoppers concerning their potential earnings in SBH.
In an Order issued the subsequent day, the Court docket denied the FTC’s movement to exclude the Particular person Defendants’ skilled testimony, explaining that as a result of the FTC had confirmed the Particular person Defendants’ legal responsibility on all counts (as to VOZ Journey), “there won’t be a trial on whether or not SBH additionally operated as an unlawful pyramid scheme.”
The FTC sought clarification of the Order, explaining {that a} trial concerning SBH is likely to be crucial to find out the suitable injunctive reduction to enter in opposition to the Particular person Defendants.
The Court docket granted that FTC’s clarification movement, however didn’t point out whether or not a trial concerning SBH can be crucial.
Principally what the FTC seeks clarification on is whether or not there’s any must additional show Success by Well being was a pyramid scheme at trial.
The court docket has accepted Success by Well being was a pyramid scheme, however the FTC desires to ram the purpose residence at trial to determine the depth of judicial penalties awarded.
The court docket has but to rule on both Success by Well being’s request for an extension to file movement, or the FTC’s Readiness for Ultimate Pretrial Convention discover.
I’ll proceed to watch the case docket for updates.
Replace tenth December 2021 – The court docket has granted Success by Well being a reply extension until December twentieth.
The FTC has then been given until January 4th to file a response.
Replace twenty fifth February 2022 – We don’t have a trial date but however the FTC’s movement concerning the Company Defendants has been denied.