Power Balance Hit With $57 Million Settlement; Declares Bankruptcy

November 21, 2011 11:29 AM

Reporting Maria Medina

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Basketball, Future of the Kings, Kings, Local, News, Seen On, Sports, Syndicated Local

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SACRAMENTO (CBS13) -– The company behind the recently crowned Power Balance Pavilion has filed for bankruptcy, according to court papers.

The bankruptcy filing come after the company apparently agreed to a $57 million settlement over a class-action lawsuit that was filed in January.

The lawsuit claimed the company misled consumers to believe that the hologram-embedded bracelets and necklaces were scientifically proven to improve athletic performance.

After the lawsuit was filed, the company admitted there was no credible scientific evidence backing its claims and offered consumers refunds.

But now, TMZ.com is reporting a settlement worth $57.4 million has been reached with the company to compensate all who bought the bogus bands.

Despite the bankruptcy filing, the Sacramento Kings are standing by Power Balance calling them “good partners since day one.”

The statement from the Kings went on to say “They (Power Balance) have assured us of 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.”

In the Chapter 11 bankruptcy papers, Power Balance claims to have assets of between $1 million and $10 million while having debts between $10 million and $50 million.

A list of creditors with the 20 largest claims against the company includes Kobe Bryant’s company, the Los Angeles Kings NHL team and the Sacramento Kings.

According to the Power Balance website, the company was started back in 2006 by brothers Troy and Josh Rodarmel and within five years had sold millions of wristbands saying they have a “roster of hundreds of top professional athletes (and growing!) and millions of satisfied customers all over the world.”

The company’s website provides a list of pro athletes called the PB Team who wear Power Balance bracelets including Dustin Pedroia, Shaquille O’Neal and Drew Brees.

ty

It means we will have a nameless, unoccupied, old arena sitting in Natomas for years to come after May 2012. When the kings that to play at the Honda Center
Whitey

“When the kings that to play…” Nice. What language is that, Ty? I guess you were just REALLY excited to have that big voice finally heard!

D-Bag.
Plain Facts

This means that Troy & Josh will open a different company, selling the same fake products and fleece millions more from the “dumb” believing general public. What really needs to happen is send these 2 to prison for 50 years and see if “those” performance enhancing wristbands help them fight off “Bubba”!!!
Stewart Padasso

Why blame the brothers for outsmarting the general public? Blame the general public (or all that purchased this snake oil) for being gullible fools.
Nan

I’ve got to agree with you, Stewart. Wasn’t it P.T. Barnam who said, “There’s a sucker born every minute.”?
NO MORE SNAKE OIL

So, the Kings are “standing by” this group of charlatans?
This only indicates that the Kings are totally committed to the selling of snake oil.
The city of Sacramento, led by a former basketball player, seems hell-bent to throw all fiscal responsibility down the drain in order to try and bribe the Kings! The income the city receives from the thousands of parking spaces downtown goes to the general fund, and the scheme to mortgage that income for the sake of this arena folly will eventually require tax increases to make up the difference!
Marty

I will never call this arena anything else but ARCO Arena. Personally, I think the Maloofs should sell the Kings to the people of Sacramento and make them publicly-owned, like the Green Bay Packers.
Sally

Maloof’s The kings and Kevin Johnson you are nothing but losers and I hope you go far far away who wants to see a bunch of uneducated losers run around the court for millions. My triplets at age 3 can do that and they would only ask for minimum wage. Shame on all of you I hope you rot in hell
Whitey

Thanks, Sally… but I’m afraid you missed class, at Harvard, the day they covered punctuation. Maybe, since your 3-year olds know what minimum wage is, you should let them handle your blogs.

P.S. – The Maloofs, Kevin Johnson and all the Kings players, had nothing to do with Power Balance making millions selling stamped rubber to sheep like you.
James P

50 years because our society is too uneducated? How is that their fault that a sucker wants to buy some snake oil because they didn’t do their research? If you Google Power Balance Bands or any cheap knockoff variety, you would automatically know the “science” has been in question since their release. If you impulsively buy junk without researching it first, you are a tool and don’t deserve a single cent back. Hate to sound harsh but them’s the consequences for being an idiot shopper with no common sense. Too bad Darwin was right; even worse our society won’t let it happen (survival of the fittest, natural selection).
http://www.flyyapparel.com/kobe-bryants-endorsement-nightmare/ Kobe Bryant’s Endorsement Nightmare | Flyy Apparel

[...] which owes them $100,000 in financial support. Despite the bankruptcy, CBS Sacramento reports the NBA’s Kings are standing by Power Balance, calling them “good partners since day one.&#8… (So what are bad partners [...]
http://iamjoccity.wordpress.com/2011/11/23/kobe-bryants-endorsement-nightmare/ Kobe Bryant’s Endorsement Nightmare « JOCCITY

[...] which owes them $100,000 in financial support. Despite the bankruptcy, CBS Sacramento reports the NBA’s Kings are standing by Power Balance, calling them “good partners since day one.&#8… (So what are bad partners [...]
http://www.onyxreport.com/not-only-is-kobe-bryant-out-of-the-25-million-he%e2%80%99s-supposed-to-be-paid-this-year-for-playing-but-now-one-of-his-endorsements-just-fell-through Not Only Is Kobe Bryant Out Of The $25 Million He’s Supposed To Be Paid This Year For Playing But Now One Of His Endorsements Just Fell Through – The Onyx Report

[...] which owes them $100,000 in financial support. Despite the bankruptcy, CBS Sacramento reports the NBA’s Kings are standing by Power Balance, calling them “good partners since day one.&#8… (So what are bad partners [...]
http://krushinmagazine.com/online/2011/11/not-only-is-kobe-bryant-out-of-the-25-million-he%e2%80%99s-supposed-to-be-paid-this-year-for-playing-but-now-one-of-his-endorsements-just-fell-through/ Not Only Is Kobe Bryant Out Of The $25 Million He’s Supposed To Be Paid This Year For Playing But Now One Of His Endorsements Just Fell Through : KrushinMagazine.com

[...] $100,000 &#1110n financial support. Despite th&#1077 bankruptcy, CBS Sacramento reports th&#1077 NBA’s Kings &#1072r&#1077 permanent b&#1091 Power Balance, calling th&#1077m “&#1077&#10… (S&#959 wh&#1072t &#1072r&#1077 t&#1077rr&#1110bl&#1077 partners [...]
http://clnprnews.com/2011/11/23/kobe-bryants-endorsement-nightmare/ Kobe Bryant’s Endorsement Nightmare | CilaneNior Daily News

[...] which owes them $100,000 in financial support. Despite the bankruptcy, CBS Sacramento reports the NBA’s Kings are standing by Power Balance, calling them “good partners since day one.&#8… (So what are bad partners [...]
http://chapterbankruptcyhelp.com/bankruptcy-help/kobe-bryants-endorsement-nightmare-yahoo-sports-blog/ Kobe Bryant’s Endorsement Nightmare – Yahoo! Sports (blog) « Bankruptcy Help

[...] which owes them $100,000 in financial support. Despite the bankruptcy, CBS Sacramento reports the NBA’s Kings are standing by Power Balance, calling them “good partners since day one.&#8… (So what are bad partners [...]
Dean

From the beginning I thought the Kings and the Maloofs were foolish to associate themselves with this useless product. It reflects poorly on them and Sacramento. Now lets get this new arena built and get a real sponsor.
Chris Davis

.. Uh, does this mean that the power was mine all along? Wow, thats great news!
http://www.rushonbusiness.com/2012/02/articles/business-litigation/false-advertising-lawsuit-filed-against-hall-of-famer-george-bretts-company/ False Advertising Lawsuit Filed Against Hall of Famer George Brett’s Company : Rush on Business

[...] This isn't the first time the sports performance necklace and bracelet industry has come under attack. Last year, it was reported that Power Balance entered into a $57 million settlement and declared bankruptcy. [...]