According to a Modere press release:
“On February 14, 2020, Modere received notice of a lawsuit filed by Isagenix.
Modere believes the lawsuit is an improper and unfortunate attempt by Isagenix to intimidate its own salesforce and spread misinformation about Modere to distract from the real issues it faces.
Based upon financial information made available to the public by various sources, Isagenix appears to be in a steady and sharp decline. According to these sources, Isagenix lost 23% of its revenue in 2019 alone and, since April 2018, has lost nearly 30% of their revenue.
According to Moody’s, Isagenix’s salesforce declined from 948,000 in June 2018 to 451,000, as of February 14, 2020 (see report here).
Clearly, these half million distributors left Isagenix for many companies other than Modere or have quit the business altogether.
The very small number of Isagenix leaders who have enrolled in Modere this year are not the reason behind Isagenix’s apparent rapid decline, but rather a result of it.
Thus, we believe Isagenix filed its lawsuit in an attempt to create a narrative to distract their field from its declining performance and to bully its sales force from leaving their company. Modere has not and does not encourage any prospective Social Marketer to breach any binding agreement they may have with a former company. But, as independent contractors, distributors are free to join any business.
Despite Isagenix’s unfounded allegations, Modere is not struggling financially. Nor does Modere have any reason to retaliate against Isagenix.
Isagenix’s financial decline long precedes the few distributors who left Isagenix to join Modere since January.
Modere is not responsible for Isagenix’s corporate management, and filing a meritless lawsuit on the same day that Moody’s downgrades its debt seems to be a ploy to distract and misdirect their own field.
Modere will defend its business interests and those of its Social Marketers, and will vigorously counter these allegations.”
Modere offers a category-leading portfolio of live clean lifestyle essentials including beauty and personal care, health and wellness, and household products that are equal parts safe, high-performing and scientifically designed. We believe modern health involves pure nutrition, a clean environment and safe ingredients across all our product categories.
Modere brings a holistic, live clean approach to well-being, and our products reflect a commitment to excellence and innovation with tested formulas proven around the globe. The recipient of multiple third-party validations, our line includes products that are EPA Safer Choice-approved, EWG Verified™, NSF Certified and gray-water safe. The company is a proud supporter of Vitamin Angels®.
About Z Capital Group
Z Capital is a privately held alternative asset management firm having over $2.3 billion of regulatory assets under management across complementary private equity and credit businesses. Z Capital manages both opportunistic, value-oriented private equity and credit funds.
Z Capital’s investors are some of the largest and most sophisticated global institutional investors including public and corporate pension funds, university endowments, foundations, sovereign wealth funds, central banks and insurance companies.
The Z Capital investment strategies and private equity portfolio companies are described at www.zcapgroup.net.
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