“Paparazzi a pyramid scheme”, leaks case counterclaim alleges

Three Defendants within the “worker leaks” case have filed a countersuit towards Paparazzi’s co-founders.

Defendants and now Counterclaim Plaintiffs Geraldine Souza, Jennifer Carrol and Jaime Robinson allege, amongst different issues, that Paparazzi is a pyramid scheme.

Counterclaim Plaintiff’s Criticism was filed alongside a solution to Paparazzi’s lawsuit, largely denying allegations towards them.

Paparazzi filed swimsuit towards the Defendants again in April, in an try to cease them leaking “confidential and guarded info”.

Named defendants within the filed August fifteenth Counterclaim are Paparazzi co-founders Misty Kirby, Trent Kirby, Chantel Reeve and Ryan Reeve.

As alleged within the Counterclaim;

Paparazzi’s enterprise mannequin is closely, if not totally, depending on recruiting and retaining people to function as Consultants for Paparazzi.

For that reason, Paparazzi compensates and incentivizes its Consultants to recruit further Consultants who in flip, recruit further Consultants.

Below Paparazzi’s compensation construction, Consultants should recruit different people into Paparazzi earlier than they’re eligible to obtain the overwhelming majority of bonuses, commissions, or different compensation.

BehindMLM reviewed Paparazzi Equipment in October 2021. Raised considerations have been encouragement of Consultants to purchase “giant quantities of inventory”, stock loading and necessary purchases – all hallmarks of an MLM pyramid scheme.

The Counterclaim continues;

Paparazzi’s 2021 earnings disclosure confirms {that a} Guide’s proper to obtain compensation is derived primarily upon that Guide recruiting different people into the pyramid versus promoting Paparazzi’s jewellery.

The common “month-to-month bonus” for a level-1 Guide and level-2 Guide is barely $12.49 and $23.67 respectively. The “bonus” for these ranges could be as little as $0.10.

Nonetheless, after recruiting at the very least three further Consultants, the potential compensation will increase dramatically.

At stage 3, the month-to-month bonus is greater than eight occasions the level-2 bonus and greater than fifteen occasions the level-1 bonus.

At stage 14, the typical month-to-month bonus is greater than 6,536 occasions the level-2 bonus and 12,402 occasions than the level-1 bonus.

Thus, Consultants can’t advance except they’re recruiting different people into the pyramid. And the development of a Guide doesn’t require that Guide to promote Paparazzi’s jewellery and equipment.

Paparazzi’s “lead and nickel free” scandal can also be introduced up.

Throughout eleven claims of aid, the Counterclaim seeks to carry Paparazzi accountable for alleged

1. violations of Utah’s Pyramid Scheme Act;
2. violations of the Lanham Act;
3. violations of California’s Shopper Authorized Treatments Act;
4. violations of Texas’ Misleading Commerce Practices Act;
5. violations of Idaho’s Shopper Safety Act;
6. violations of Utah’s Shopper Gross sales Practices Act;
7. breach of specific guarantee;
8. breach of implied guarantee;
9. violations of California’s False Promoting Regulation;
10. fraudulent misrepresentation; and
11. negligent misrepresentation

Paparazzi’s co-founders have but to answer the Counterclaim.

Wanting ahead, a Case Administration Convention has been scheduled for September twenty seventh.