Verdict Hammers Pre-Paid

For its part, Pre-Paid has always stood by its practices and vowed to fight off its opponents in court. The company has previously prevailed in cases brought by customers and sales associates, but it now faces the potential of even larger damages ahead.

Pigott Reeves Johnson & Minor, a Mississippi law firm led by former U.S. Attorney Brad Pigott, is seeking as much as $90 million per case for customers allegedly defrauded by the company. Pigott won big cases against companies and public officials alike during six years as a federal prosecutor.

To be fair, Pre-Paid has a string of victories behind it. Perhaps most notably, the company has overcome a purported class-action lawsuit accusing it of being an outright pyramid scheme. It has also escaped financial penalties sought by some of its former star associates. It has even gotten a fraud verdict overturned and damages reduced in none other than Mississippi.

Still, Pre-Paid faces multiple lawsuits involving more than 400 plaintiffs in Mississippi. The company will head right back into a Mississippi courtroom to defend itself against a single customer next month.

In the meantime, those suing the company clearly believe they have found a formula that works.

"We are pleased that the jury recognized the fact that there is a significant difference between what Pre-Paid and Harland Stonecipher said about the product sold ... and the truth of what that product really is," Pigott declared. "Ultimately, the testimony of Mr. Stonecipher and the Pre-Paid sales associates proved our case for us."