Hologram Wristband Company Files Bankruptcy

Amid repeated complaints and lawsuits about misleading advertising for rubber wristbands that improve athletic performance, one company has lost its footing and is declaring bankruptcy. This news coming from the Orange County Register : “Power Balance LLC, a Lake Forest company that made a big splash linking its performance bracelets to professional athletes, has filed for protection in federal bankruptcy court in Santa Ana. The filing is the result of numerous lawsuits that allege misleading advertising about the hologram-embedded rubber bracelets and the company will continue to operate during reorganization, Power Balance said in a prepared statement. Troy and Josh Rodarmel hold up some hologram-embedded bracelets in a 2010 photo. Their company, Power Balance in Lake Forest, has filed for bankruptcy protection and will reorganize, the company says. Spokesman Chris Thonis said Power Balance recently settled one lawsuit for $1 million and that reports seemingly originating with TMZ that the settlement was for $57.4 million are incorrect. The company, incorporated in Delaware, has assets of less than $10 million and debts of $10 million to $50 million, according to court filings. Among the biggest creditors are the Los Angeles Kings Hockey Club, $250,491; Sacramento Kings basketball team, $100,000; and entities representing Los Angeles Lakers forward Kobe Bryant, $400,000; pro skateboarder Ryan Sheckler, $25,000; Clippers center Blake Griffin, $20,000, among others.” With all the celebrity endorsements, it is hard to believe that this company is where it is today.