Eight of the 10 allegations dismissed against Sedona businessman and Dahn Yoga founder Ilchi Lee and others by U.S. District Court Judge Susan Bolton in November 2009 have been reinstated.
The defendants are accused of defrauding more than 20 employees.
Bolton gave the plaintiffs an opportunity to submit more facts on the dismissed claims in her November 2009 ruling. The additional information she received resulted in her ruling the claims could move forward.
Two claims of sexual assault by Lee against one of his employees were dismissed by Bolton because the information the woman provided in the amended complaint differed from her previous statements.
Bolton ruled last November the intent to inflict emotional distress and negligent emotional distress against the former employee could move forward, but changed her ruling because of the differing accounts, according to court documents.
When initially dismissing eight of the 10 charges in November, Bolton also dismissed 26 plaintiffs, and left the two motions intact from the woman.
Dahn Yoga spokesman Joseph Alexander said Lee and others named in the suit will ask Bolton to reconsider her ruling on the reinstated claims. In her ruling, she gave them 60 days to respond.
The eight allegations Bolton ruled could proceed are for fraud and undue influence of people taking part in Dahn Yoga training without being given all the information about the program.
The plaintiffs claim facts were concealed when recruited, and they were victims of undue influence and coercive persuasion.
Alexander said the eight claims also allege employees were “tricked” into taking employment with Dahn Yoga, claiming Lee developed and implemented a scheme of deception and undue influence in order to recruit new “disciples.”
The claims assert the Dahn Yoga program is designed and intended to recruit and indoctrinate people into the organization where they unknowingly are subjected to psychological manipulation, indoctrination and various techniques of coercion designed to make them “disciples.”
Besides asking Bolton to dismiss complaints still being considered, Dahn Yoga will file a counterclaim, Alexander said.
Dahn Yoga is seeking $20 million in its counterclaim for conspiracy and interference with existing and prospective relationships.