Natural Health Trends Corp. scored an early win against investors accusing it of running an illegal Chinese pyramid scheme after a California federal district judge found insufficient proof the investors were misled and dismissed the suit.

Investors said the health and wellness retailer misled them about its compliance with Chinese laws prohibiting pyramid schemes. But their complaint “fails to establish that any challenged statement was false or misleading when made,” the U.S. District Court for the Central District of California said Dec. 20.

NHT should have told shareholders that it was paying commissions based on product sales, which created a…

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