The District Court held that the statute of limitations runs from the time that the fraud is detected, and barred further prosecution of the case. Kelly first became aware that he might have been defrauded after the company stopped paying him commissions on downline sales, and reassigned his downline. He argued with the company, but A.L. Williams' behavior continued over the next several years. The court held that he should have reasonably considered fraud at the first instance of the company's actions, and that it was from that time the statute of limitations began to run. Because Alabama's statute of limitations was 1 year upon discovery of fraud, the action was dismissed.

Full case and case summary are also available at: http://www.mlmlegal.com/legal-cases/Kelly_v_ALWilliamsCorp.php