Power Balance, the company that sold plastic wristbands with claims of health benefits has filed for bankruptcy, according to reports. Litigation against Power Balance forced the company to file for Chapter 11 protection under the U.S. Bankruptcy Code last week, Power Balance representatives said.

The company, who sold the completely useless bracelets , recently settled a $57.4 million dollar class-action lawsuit with its customers for false advertising.

The company officials admitted in January that they made bogus claims that the holograms in their bracelets, inspired by Eastern philosophy, improved strength and balance. They had given the statement that We admit that there is no credible scientific evidence that supports our claims and therefore we engaged in misleading conduct.

Power Balance came onto the scene three years ago with major celebrity endorsements. The company has sold nearly 3 million bracelets at $30 a pop.

At the same time Power Balance said it is keeping its commitments to the Sacramento Kings despite the wristband maker’s bankruptcy restructuring. Power Balance Pavilion has been the name of the Kings’ arena since March.

It is business as usual and Power Balance continues to be a happy supporter of the Kings and the Sacramento community,” a Power Balance spokesman said.

“They have assured us of their commitment to the Sacramento Kings and the surrounding community and we expect to continue our productive partnership through this process and into the future,” the Kings organization said.