If you were an Associate or Distributor associated with MXI Corp. (“MXI”) in the United States at any time between May 1, 2011 and November 3, 2016, you could get benefits from a class action settlement.
Overview of the Proposed Settlement
A proposed Settlement has been reached in a class action lawsuit against MXI Corp. ('MXI') and several individual defendants alleging that the Defendants operated a pyramid scheme contrary to Nevada law. The Court has not decided who is right in the lawsuit.
You were sent this notice because, based on MXI’s records, you appear to be a Class Member. Class Members have a right to know about the proposed settlement of this class action lawsuit and about all of your options before the Court decides whether to approve the settlement. If the Court approves it, and after objections and appeals are resolved, the benefits provided by the Settlement Agreement will be distributed to the Class Members.
The proposed Settlement Agreement categorizes Class Members as “Income Members” and “Consumer Members.” Income Members are Class Members who principally participated in the MXI program to earn income. Income Members may receive a cash award. Consumer Members are Class Members who are not Income Members. They may receive a Product Award.
The proposed Settlement Agreement provides that the defendants will establish two funds to provide two different types of compensation for Class Members:
- Cash Settlement Fund: $4,332,000 in cash will be used to pay Income Members. This fund will also be used to pay service awards, attorneys’ fees and costs, costs to administer the settlement and any cy pres payment.
- Product Fund: Up to $1,750,000 in MXI credits or gift certificates will be used to compensate Consumer Members.
Your legal rights are affected even if you do nothing. Read the information on this Settlement Website carefully. Your rights and options, and the deadlines to exercise them are explained on this Settlement Website.
The Court will decide whether to approve the Settlement. Proposed payments to Class Members who do not exclude themselves from the Settlement will be made if the Court approves the Settlement. Please be patient and check this Settlement Website to find out when the cash payments may be available.
Your Legal Rights and options in this settlement
Submit a Claim
This is the only way to receive any compensation. If you are a Class Member, you can submit a Claim Form online here, by email or mail to the address provided on the Contact page of this website. The deadline to submit a Claim Form is February 18, 2017. See FAQs 8 - 13 for more details.
Exclude Yourself from the Settlement
You will not receive a payment. This is the only option that allows you to ever be part of any other lawsuit against the Defendants about the legal claims in this case. The postmark deadline to exclude yourself is February 6, 2017. See FAQ 17 for more details.
Object to the Settlement
Write to the Court about why you don’t like the Settlement. You may object to the Settlement Agreement and file a Claims Form. The deadline to object is February 6 2017. See FAQs 14 – 15 for more details.
Go to a Hearing
The Court has set the Fairness Hearing on February 27, 2017 at 10 AM regarding the fairness of the Settlement Agreement. You may appear at the hearing, but it is not required. You may hire your own attorney to appear for you. See FAQ 16 for more details.
If the Settlement Agreement is approved and you do nothing, you will receive no compensation from the Settlement Agreement and you will be bound by the Settlement terms and judgment and will not be able to later sue Defendants about the claims in this lawsuit. See FAQ #18 for more details.