In re Omnitrition International Inc. Securities Litigation, 1994 WL 655897 (1994) (Not reported)

Is the Omnitrition program a security subject to regulation under federal securities laws?


The District Court granted summary judgment in favor of Omnitrition and dismissed the claim. The court found that Omnitrition had adopted programs that previous court decisions had found to be conclusive evidence that an opportunity was not a security. The adoption of these programs, a requirement that distributors sell to a number of retail customers each month, a requirement that 70% of inventory be sold before allowing reorders, and a prohibition on downline bonuses unless the distributor makes certain retail sales, adequately demonstrated that Omnitrition was not a security subject to regulation under federal security laws.

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Published In: Civil Procedure Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates, Securities Updates

Reference Info:Federal, 9th Circuit, California | United States

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