Plaintiffs said they were deceived into investing by Trump.
ASSOCIATED PRESSA federal judge ruled Wednesday a state-level class action accusing the president and his children Don Jr., Eric and Ivanka ofin three multilevel marketing companies promoted by the Trumps can move forward.
U.S. district judge Lorna Schofield dismissed four plaintiffs’ claims of federal racketeering and conspiracy, citing a lack of evidence, but allowed claims of fraud, false advertising and unfair competition to continue. The plaintiffs claim they were deceived by Donald Trump into investing in the companies because of his endorsement, making them believe they had a reasonable chance of success, while alleging the Trumps accepted millions in secret payments behind the scenes. are the Trump Network , the Trump Institute and the American Communications Network Plaintiffs said they were unable to recoup their investments after years of participation and recruiting.
As is typical with MLM companies, participants in the Trump-promoted ones paid a startup fee to join, with incidental costs down the line, such as purchasing products and event tickets, and traveling to large-scale, conference-type events. One way MLM participants can make money is by recruiting others into the business and then taking a commission from the recruits’ sales.
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