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Karma: 52 |  | Power Balance Bracelets to go Bancrupt
« Thread Started on Nov 22, 2011, 11:19am » | |
Power Balance, the company that allegedly stretched the truth about the ability of its 'performance-enhancing' rubber bracelets, is reportedly on the verge of shutting down after shelling out $57 million to settle a lawsuit.
The California company counts some of the nation's top athletes among its converts.
The likes of New Orleans Saints quarterback Drew Brees, Los Angeles Lakers stars Kobe Bryant and Lamar Odom and NBA legend Shaquille O'Neal have been spotted wearing the silicone bands on their wrists.
But company officials admitted in January they made bogus claims that the holograms in their bracelets, inspired by 'Eastern philosophy,' improved strength and balance.
Now, TMZ is reporting that the company has settled a class action lawsuit over the bracelets for $57.4 million. Citing anonymous sources, TMZ said Power Balance will declare bankruptcy and close up shop as a result of the legal action.
Power Balance denied TMZ's claims, telling the New York Daily News: 'The rumors started by TMZ are, of course, way off the mark. PB is not going out of business."
A spokesman also denied the $57 million settlement amount.
Instead, Power Balance said it made a $1 million settlement and filed for Chapter 11 bankruptcy protection.
Power Balance blasted onto the scene three years ago with major celebrity endorsements. The company has sold nearly 3 million bracelets at $30 a pop.
In January, company officials issued a statement saying: 'We admit that there is no credible scientific evidence that supports our claims and therefore we engaged in misleading conduct'
'If you feel you have been misled by our promotions, we wish to unreservedly apologize and offer a full refund.'
A lawsuit against the company was also filed in January. It alleged Power Balance leaders knew their product did none of the things they said, but continued to repeat the claims anyway.
Read more: http://www.dailymail.co.uk/news/article-....#ixzz1eQqtERdo
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Karma: 287 | | Re: Power Balance Bracelets to go Bankrupt
« Reply #1 on Nov 22, 2011, 2:48pm » | |
So whats new, a company gets found out making false claims about their product. I thought this was par for the course.Its the gullible people who bought them that should be under protective custody for their own safety. Still,I suppose some wearers will claim they have been helped by them, a case of mind over matter, perhaps. 
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Stelio Kontos
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Karma: 52 | | Re: Power Balance Bracelets to go Bancrupt
« Reply #2 on Nov 22, 2011, 3:14pm » | |
It is good though that they are admitting they lied, refunding people and going out of business. Perhaps others may learn a lesson in selling silly things with ridiculous claims.
And if you were stupid enough to buy one of these at a high cost then you deserve to be conned.
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Stelio Kontos
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Karma: 52 | | Re: Power Balance Bracelets to go Bancrupt
« Reply #4 on Nov 23, 2011, 11:34am » | |
Nothing stopping them making wristbands as long as they make no magical claims alongside
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