A class action lawsuit was filed in 2007 against Quixtar and some of its top-level distributors in California, alleging fraud, racketeering, and that the products business and the tools business are pyramid schemes. A similar case filed in California in August 2007 by TEAM affiliated IBOs whose contracts had been terminated was dismissed. On November 3, 2010, Amway announced that it had agreed to pay $56 million to settle the class action, $34 million in cash and $22 million in products, and while denying any wrongdoing or liability, acknowledged that it had made changes to its business operations as a result of the lawsuit. The settlement is subject to approval by the court, which is expected in early 2011. The total economic value of the settlement, including the changes to the business model, is $100 million.