Saturday, December 8, 2007

Kimmer - So ....dumb!

At the recent deposition, a PM from Heidi Diaz to Singingass was read where Heidi said: "Can you imagine him telling the judge that wants to certify a class action against a housewife? hehehe." Guess what? She was wrong, and a class action suit has been filed. Her assets are frozen and it's more than likely that she will lose all her ill gotten money.

And to think how easily this could have been avoided. The class action suit is mainly based on plaintiffs claiming that they paid for a Lifetime membership based on fraudulent claims, and that they were banned from the kimkins' website. If Kimmer had only given everybody that requested it a refund, there wouldn't have been grounds for a class action lawsuit. Sure, other legal repercussions would surely have followed, but not a class action suit. While the suit also claims ill effects from the diet, this is much harder to prove than no refund. And, would have to be done on an individual basis, I assume.

So lets make a little math exercise to see how much it would have cost Heidi Diaz to give refunds. Assume that her revenues were from 40,000 members @ $60. This totals $2,400,000. Sure, there would have been some business expenses for the website and affiliates, but let's just use this number as a ballpark.

While the anti-kimkins, banned members are very vocal, and surely have caused Heidi great grief and lack of business by now, they are most likely not a high number. My guess would be 500 people, tops. (The majority of the people that signed up following the Woman's World article would just have given up, written off the money as a loss for another fad diet attempt and moved on, never bothering to ask for a refund.) While not all of the 500 that were banned signed up at the current price of $60, let's use it for simplicity. 500 @ $60 totals $30,000.

Heidi would have had to repay $30,000 out of $2,400,000 to avoid a class action lawsuit.


And she decided that she didn't want to? How dumb can you be?

Of course, when the lawsuit had been filed, she tried to do just this. She sent refunds to all named plaintiffs but then it was too late. You can not buy yourself out of a lawsuit after the fact. Surely her lawyers retainer exceeds the paltry $30,000 that would have avoided the law suit altogether.

I'm sure that Heidi Diaz has no remorse for people that she has hurt through her dangerous diet advice. But surely she will suffer from having made such bad decisions regarding the money, as that is important to her. Actually, I think it's the only thing that is important to her.

1 comment: said...

thank you for posting about Kimmer and
yep messing with jeanessa was the wrong thing to do.