RCT Brings Class Action Against Pyramid Scheme
MXI is a company that sells supposed “healthy” chocolate products, including chocolate skin care products, through the brand Xocai (pronounced “sho-sigh”). RCT has filed a class action alleging that MXI is a scam that operates as an illegal pyramid scheme by focusing not on selling chocolate products to retail customers, but on endlessly recruiting participants to commit to purchasing MXI chocolate at wholesale prices on an ongoing basis in exchange for the right to receive compensation for recruiting other participants to do the same. The lawsuit alleges that MXI entices people to participate in the scheme with the prospect of large financial rewards when, in fact, hardly any participants make money and the vast majority lose their investments. MXI, of course, fails to inform its participants that they are almost certain to lose money.
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