Lyconet/myWorld held responsible for debts/contracts of Lyoness Europe AG!
The Higher Regional Court of Vienna with a clear statement: Deception and misleading practices in the stock program!
The Higher Regional Court (OLG) of Vienna recognized the deception and sentenced the successor companies of Hubert Freidl to repay the investments made with Lyoness. Yes, these are investments.
The appellate ruling (Case No. 2 R 28/24p) dated June 27, 2024, by the Higher Regional Court of Vienna dealt with the deceptive practices of Hubert Freidl and his companies within the myWorld Share Program (MSP).
Hubert Freidl attempted to create the impression through the MSP that all investments with Lyoness Europe AG would be taken over by the new contractual partners, Lyconet Austria GmbH and myWorld Austria GmbH.
The marketer, identified by the court as an investor, was supposed to convert her previous investments into myWorld Share Points to receive shares in a “publicly listed” myWorld. However, investors had to forfeit participation in the previous cloud program and accept the new terms and conditions. This led to investors continuing to make payments without receiving actual value, while the new companies denied any connection to Lyoness Europe AG.
Excerpt from the OLG Vienna judgment (June 27, 2024), pages 6/7:
“Moreover, the defendants are liable as accomplices in a sham construction due to deliberate and unethical harm, because they induced the plaintiff to agree to the contract transfer through deceptive actions…”.
“The illegality of the actions is particularly due to the intentional concealment that the total loss of all investments would inevitably occur with the transition.”
Furthermore, the court reaffirmed that the terms and conditions of Lyoness Europe AG were non-transparent and that the entire system was a prohibited pyramid or Ponzi scheme.
The new contractual partners acted in a way that made investors believe their investments were still valid and that they were entitled to myWorld shares.
Ultimately, the court ruled that the investors should be refunded their original investments.
Excerpt from the OLG Vienna judgment, page 13:
“The contractual terms of the agreement… and their original contracting partner, Lyoness Europe AG, are thus non-transparent… and contrary to the consent required for the contract. Moreover, it is a prohibited pyramid or Ponzi scheme… a system is unethical where the consumer is led to believe they can earn a reward primarily by recruiting new consumers into such a system rather than through the sale or consumption of products.”
This ruling sets an important precedent, as it legally links the bankrupt Lyoness Europe AG to Lyconet and myWorld.
The deception of marketers to switch them to the allegedly publicly listed company myWorld was also legally condemned and recognized for what it truly is: a deception from the house of Lyoness, Lyconet, and myWorld.
We will keep you informed as the investigations and lawsuits proceed accordingly.
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