The company behind Power Balance bracelets donned by basketball stars and celebrities has filed for bankruptcy protection amid a spate of lawsuits.
The Laguna Niguel, Calif.-based company filed for Chapter 11 bankruptcy in federal court in Santa Ana on Friday.
Power Balance LLC says the company has spent millions of dollars fending off class-action lawsuits over marketing claims made by an Australian distributor.
Last year, Australian authorities found that claims the wristbands improved flexibility, balance and strength were misleading. That prompted Power Balance to admit there was no scientific evidence to support its claims and agree to refund customers who felt cheated.
Court papers show the company's international revenues plunged after the incident.
The company says it intends to remain in business after reorganization.