It happens in the corporate world, and it happens in the Direct Selling Industry, Lawsuits…. a few cases:
Monavie versus Xowii, December 2009
MonaVie is suing former distributors and an fledgling California competitor alleging they are trying to steal its independent sales force by spreading lies about the Utah company's financial prospects.The South Jordan-based MonaVie is suing the startup XOWii LLC of Newport, Calif., in 3rd District Court in Salt Lake City. The two companies are among a legion of multilevel marketers among whom competition can be fierce to attract and hold networks of independent distributors of their nutritional and personal-care products. In the lawsuit filed this month, MonaVie names former distributors Rodney Robards of Oklahoma and Shaylon Hart and Chris Byram of Texas, who now work with XOWii, as well as officers of the California company.
Efusjon versus Broes, December 2009
Derek Broes files a counter complaint against Efusjon.
Amway versus Orrin Woodward (Monavie) and partners, December 2009
Orrin Woodward and Partners sentenced to pay $ 25 Millio. In what is called the final award, Orrin and Laurie Woodward are liable for $12,736,659 for soliciting other IBO's to resign from Quixtar and compete with it's business (in MonaVie). Chris and Terri Brandy are liable for $9,578,756 and Tim and Amy Makes are liable for $3,533,230. Orrin Woodward‘s comments: „The arbitration award is far from final and with the recent ruling by a Federal judge in Utah that former IBO’s should not go through Amway’s arbitration, we will see what happens. There are several major pieces of evidence that were denied us in our defense that is now coming to light.
Efusjon Class Case, November 2009
Cook v. Efusjon, et al is a case about a class of victims seeking to end the fraudulent marketing tactics employed by efusjon. In a purported network marketing business, efusjon sells and markets its line of energy drinks through distributors. Instead of requiring distributors to sell products to customers, efusjon literally forces its distributors to purchase 48 energy drinks a month and then considers those required purchases as customer “sales.”
Zrii versus Lifevantage, February 2009 (Settlement December 2009)
Zrii filed a lawsuit against Lifevantage Corporation for allegedly inducing and conspiring with the former Zrii executive management team and some of its leading Independent Executives to breach their contracts with Zrii, to join Lifevantage as its employees or distributors, and to utilize trade secrets of Zrii for the benefit of Lifevantage.
On December 18, 2009, we entered into a settlement agreement with, among other parties, Zrii, LLC. Under the terms of that agreement, we paid $400,000 to Zrii, and Zrii and its founder, William Farley
AGEL Versus Monavie – Randy Schroeder, October 2008
Imagenetix versus Monavie, May 2008
MonaVie choose to make a quick settlement with Imagenetix by buying the product to put in their liquid thereby getting Imagenetix the manufacturer to drop the lawsuit.
Amway (QUIXTAR) versus Monavie (Brig & Lita Hart), March 2008
This action stems from the unfair competition of Mona Vie, Inc. and MonaVie LLC (collectively referred to as “MonaVie”) and its distributors. MonaVie conspired with existing and former Quixtar distributors to intentionally interfere with Quixtar’s existing contracts with its current and former IBOs by inducing them to breach their agreements with Quixtar. In their effort to raid Quixtar’s distributor force and to obtain product sales, MonaVie and its distributors, among other things, falsely advertise the health benefits of its products that compete with Quixtar products. For example, MonaVie distributors falsely advertise that the MonaVie products cure cancer.
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