According to reports, the Power Balance company is facing a multimillion dollar payout in a class action lawsuit and is possibly folding up shop. Sacramento just can’t seem to catch a break.
According to TMZ, A federal court has hit Power Balance with a $57 million judgement against the company.
A class-action lawsuit filed in January claims the company mislead us to believe that the hologram-embedded bracelets and necklaces were scientifically proven to improve athletic performance. Here lies the problem – it was a scam. There is no evidence backing the claims. FOUL!
Sources are saying a settlement worth $57.4 million has been reached – with the company compensating all who were duped into buying the bands.
TMZ is reporting the company is planning to declare bankruptcy and close up shop all together.
What does this mean for Sacramento’s Power Balance Pavilion? Will this affect the movement to build a new arena? Stay tuned…
UPDATE: Power Balance says it is keeping its commitments to the Sacramento community and the Sacramento Kings. The Kings have released the following statement regarding the news.
“We maintain close communications with Power Balance and are aware of their decision to file for voluntary protection available to them through the courts,” the Kings organization said. “They have been good partners since day one and are, understandably, taking steps to put the company in a position to continue their innovation in the performance technology sector. They have assured their commitment to the Sacramento Kings and the surrounding community and we expect to continue our productive partnership through this process and into the future.”