Power Balance, the embattled sports performance jewelry company retorted a TMZ report today that claimed the company was paying out a $57 million settlement and ceasing operations, calling it “way off the mark.”
The company has filed for Chapter 11 bankruptcy protection, but will stay in business, said Chris Thonis, a publicist speaking for Power Balance.
“There are false rumors about Power Balance swirling around the internet today and I want to provide some direct insight into the moves the company is making to position it for growth going forward,” Thonis said. “For PB an independent distributor (in Australia) and counterfeiters using the PB brand illegally (around the world) made claims unsupported by the company that have sparked a wave of lawsuits. While PB finds the lawsuits baseless and stands by the popular wristbands and its performance technology products, the legal actions are coming at a high cost to the organization leaving the company no other option that to seek voluntary protection under Chapter 11-bankruptcy law while it restructures. (Not going out of business!)”
The company will remain in business and honor all warranties and commitments to retailers.
“To be clear, the rumors started by TMZ are of course, way off the mark. PB is not going out of business,” Thonis said. “PB is actually in the process of launching a new product, dubbed performance mouth gear in markets over the next few weeks (more below) The lawsuits were not in the amount of $57.4 million; there was actually a recent settlement for $1 million.”
Power Balance has used Drew Brees and Shaq in endorsements in the past.
Amazingly, this story actually has legs. Our reporting of TMZ’s blog post this morning is the #1 story on the site today.