Report: Power Balance Hit With $57M Settlement; Plans To Declare Bankruptcy

SACRAMENTO (CBS13) –Sacramento nearly lost the Kings only to have the NBA season put on hold. Now it looks like we may lose the newly crowned Power Balance Pavilion…well at least the name.

A federal court has hit Power Balance with a $57 million judgment against the company, according to the website TMZ.

A class-action lawsuit filed in January claims the company misled consumers to believe that the hologram-embedded bracelets and necklaces were scientifically proven to improve athletic performance.

That's when the company admitted there was no credible scientific evidence backing their claims and offered consumers refunds.
But now, sources are saying a court-ordered settlement worth $57.4 million has been reached with the company compensating all who bought the bogus bands.

TMZ is reporting the company is planning to declare bankruptcy and close up shop all together.

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.

It's unclear what this will mean for Power Balance Pavilion.