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MXI Xocai Distributor Class Action Settlement
Settlement Deadline: February 18, 2017

Did You Purchase Xocai Chocolates? You could claim $50! A near $6 million settlement has been reached in a class action lawsuit against MXI and several individual defendants over allegations that the multi-level marketing organization is actually a pyramid scheme.

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.

In general, all MXI Associates included in the Class are U.S. residents who:

  • Received less money from MXI than they paid MXI in fees or product purchases over the course of their associations with MXI, up to Nov. 3, 2016
  • Made any payment to MXI to purchase product or pay fees between May 1, 2011 and Nov. 3, 2016

MXI will establish two funds to provide two different types of compensation for Class Members:

Cash Settlement Fund: $4.3 million in cash will be used to pay Income Members. The cash payment amount for each Income Member is the “Base Claim Amount” subject to the “Reimbursement Reduction” and pro rata reduction.

Base Claim Amount: “The Base Claim Amount is the amount of money the Income Member has ever paid MXI, less the amount of money the Income Member has ever received from MXI. The Base Claim Amount is not restricted to money paid for that particular Income Member’s MXI account and may include money paid by that Income Member for other Class Members’ accounts.”
Reimbursement Reduction: “An Income Member’s Base Claim Amount will be reduced by a Reimbursement Reduction where one Income Member filing a claim held the MXI account and another Income Member filing a claim presents evidence that he or she made a payment to MXI for the account. If the Income Member certifies that he or she reimbursed the payor for any amounts the payor paid on behalf of the Income Member the payor’s ‘Base Claim Amount’ will be reduced by the amount of the claimed reimbursement to yield the Adjusted Base Claim Amounts.”

This fund will also be used to service awards, attorneys’ fees and costs, costs to administer the settlement and any cy pres payment.

Product Fund: Up to $1.75 million in MXI credits or gift certificates will be used to compensate Consumer Members. This payment will be calculated using the following process:

“After eliminating duplicate submissions, the Settlement Administrator will total the number of claimants on the Accepted Consumer Claim List to yield the total number of Consumer Member claimants. If this number is 35,000 or less, then the Product Award Amount is $50. If this number is more than 35,000, then the Product Award Amount of $1.75 million will be divided by the total number of accepted Consumer Member claimants.”

February 18, 2017






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