This one really has to hurt Orrin Woodward and the TEAM apologists. They will try (once again) to spin this but this is a BIG blow.  From the Alticor Media Blog:

We received official word from California federal court this afternoon that Woodward et al v. Quixtar has been dismissed.

The dismissal deals a severe blow to Orrin Woodward’s federal
class-action legal attack. Woodward and other plaintiffs cynically
claimed that Quixtar was an illegal pyramid scheme in an attempt to
avoid their contractual obligations, embarrass the company and damage
its IBOs. The company adamantly denied the charges and noted that a
Michigan court had already ordered the plaintiffs to arbitrate their
claims.

This is a major victory, and we are grateful that the judge agreed with our arguments in the case.

In his ruling, Feess noted that “the Michigan court has already
enjoined Plaintiffs from violating the covenants not to compete and not
to solicit and sent the case to arbitration.” He later added, “[T]he
Court agrees with the Michigan court and believes the parties’
arbitration agreement is valid and binding.

“[T]he court GRANTS Quixtar’s motion to dismiss on declaratory
relief abstention grounds and the matter is hereby DISMISSED WITH
PREJUDICE.”