Bankruptcy of Lyoness Europe AG: The unfortunate fate of individual plaintiffs and a frustrated bankruptcy administrator!

The bankruptcy of Switzerland-based Lyoness Europe AG & Lyoness International AG. The administrator tasked with handling the case is truly to be pitied; his nerves are frayed as this task proves to be not only arduous but also presents significant obstacles. Despite intensive efforts, he has only managed to recover around 110,000 Swiss francs, just enough to cover the current bankruptcy costs.

The approximately 800 creditors with individual claims now face a tremendous challenge. The examination of claims by the bankruptcy administrator is expected to continue until mid-2025 due to the sheer volume of claims.

Hubert Freidl’s statement to the prosecutor, claiming that very few customers are dissatisfied, borders on pathological denial of reality. This fiasco highlights a central issue: the wealth supposedly boasted by the Lyoness purchasing community simply does not exist. While the company had spoken of substantial profits for years and lured new members with promises of passive income, it has now become clear that many creditors will go empty-handed. As numerous court rulings and economic assessments have shown, the purchasing community is a mere façade, with the recruitment of new members as its actual core operation.

In Switzerland, a particularly troubling aspect is that the bankruptcy administrator is not only struggling with countless claims but also with the lack of transparency in the company’s structure. The documents available to him are riddled with gaps and errors, which greatly complicates his work. Crucial documents are missing, making the examination process difficult. Additionally, the cooperation obligations of Hubert Freidl and other responsible parties are not being met. Instead of supporting the work of the bankruptcy administrator, they are actively obstructing it—a situation reminiscent of similar cases in countries like Norway and South Africa, where incomplete documentation and a lack of cooperation with authorities were also noted.

As we reported in February, an economic report revealed that over 50 companies are linked to Lyoness Europe AG, and around 6 million Swiss francs remain unaccounted for. Furthermore, it appears that Freidl and his associates have siphoned off company funds for years. The amount Freidl owes the company is estimated at over 30 million Swiss francs, underscoring the extent of mismanagement and alleged self-enrichment.

For the affected creditors, the question now arises of whether and when they might ever see their money. While the bankruptcy administrator searches for the missing funds, it seems that all traces have been deliberately erased. The generous loans given in the past to third parties and close associates further exacerbate the situation.

The entire case once again demonstrates how recklessly the funds of members and creditors were handled. Individual plaintiffs were procedurally isolated, regularly inundated with new contracts, agreements, and addenda to ensure that creditors would walk away empty-handed in the event of bankruptcy. But not us!

We on the other hand will take Lyconet / myWorld to task and there are judgements on this, but this only helps customers who are represented by us.