Since our founding in 1982, Wellman & Warren has served as the authority in business litigation matters involving multi-level marketing issues. We specialize in four practice areas that include: cross recruiting, non competition violations, breach of contract and policy and procedure violations. We value your time and resources and we use our own resources and knowledge to the best of our ability to find the most effective outcome for your individual case.
Most recently Wellman & Warren obtained a $1.9 million judgment against Aloha Island Gold and Sam Timas for misappropriating trade secrets from the Gold Refinery, a multi-level marketing company in the gold party exchange business, where customers throw parties for individuals to bring scrap gold in exchange for cash. Aloha Island Gold came about, when Sam Timas, a Hawaii partner distributor, saw an opportunity to grow the gold party trade business in Hawaii without the knowledge of Gold Refinery, and convinced Gold Refinery’s customers to turn their gold parties into Aloha Island Gold parties. This was a clear case of misappropriation of trade secrets, tortuous interference with contract, and breach of fiduciary duty. Through our commitment to Gold Refinery and upholding the law, we were able to achieve an outcome that provided justice to Gold Refinery’s devastating loss of business during what should have been an exciting time in the expansion of their business model in Hawaii.
However, not every case is a clear violation of laws surrounding multi-level marketing policies and procedures, contracts, and laws. Recently, Utah based multi-level marketing company MonaVie filed suit against a former top distributor to halt use of his Facebook page because they alleged he was cross recruiting MonaVie’s distributors to Momentis, competitor multi-level company. However, the court ruled that “there [was] no indication that this was an attempt to contact distributors of MonaVie and convince them to join Momentis.” The judge said the contract language regarding MonaVie company policies that prohibit solicitation of distributors for another multilevel marketing company was too broad to the point it could not be enforceable.” Further, the court could not determine whether the postings on facebook were specifically targeted to some of MonaVie’s current distributors to entice them to Momentis. Therefore, this case was not one found to be in violation of cross-recruiting by a former distributor.
Whether you have a former distributor who is allegedly cross-recruiting, there are misappropriation of trade secrets or breach of contract, we at Wellman & Warren have the knowledge and expertise to represent your case to the fullest extent of the law and to achieve the best possible outcome for your company.