MLMs PruvIt and ForeverGreen Embroiled in Legal Battle Over Ketones
Several months' worth of tense exchanges between two big names in multi-level marketing have come to a grinding halt. That's because exactly one month ago on August 24, 2015, PruvIt filed a federal lawsuit against ForeverGreen International.
The complaint was filed in U.S. District Court For The Eastern District Of Texas Sherman Division – Case #4:15cv00571.
There are actually two defendants in this case: ForeverGreen International LLC., and Axcess Global Sciences LLC.
Who is ForeverGreen International?
ForeverGreen International is a multi level marketing company selling the “Ketopia” system. Products are developed specifically to bring the human body into a state of Ketosis, during which it burns fat in an incredibly efficient manner. This state of being has typically only been attainable through strict following of a ketogenic diet and lots of time invested.
Ketosis products enable faster, easier achievement of the state of ketosis. The goal is weight loss.
The products are sold via direct selling, more specifically via MLM. ForeverGreen is based out of Lindon, Utah.
Who is PruvIt?
PruVIT is also an MLM selling products “Pruvit Keto-OS” which will supposedly bring the human body into a state of ketosis. But ForeverGreen is more than a competitor to PruvIt: they are their replacement in the marketplace.
More on that below.
PruvIt is based in Texas and is a privately held corporation.
Who is Axcess Global Sciences LLC?
Axcess Global Sciences LLC holds the exclusive license to the ketone technology in question in this matter. The technology was developed at the University of South Florida, who holds the patent. Axcess has the right to sublicense the technology in order to earn a profit.
Axcess put out the contract to the highest bidder and entered into a binding contract with PruvIt.
Axcess Global Sciences LLC is based in Salt Lake City, Utah.
Here's the Issue
PruvIt is claiming foul play. After winning the contract with Axcess Global to market products developed using the ketone technology, PruvIt went ahead and developed their company.
They invested in their business under the assumption that their contract with Axcess Global would hold. Ketosis products would be the only thing they sold. In the words from the official federal complaint, PruvIt…
“…relied upon that in creating a complete company concept…”
Axcess Global then entered into contract with ForeverGreen for the same licensed ketosis technology. Apparently they did this because they believed it to be a more lucrative relationship.
Interestingly, all three parties involved in this case worked together to try and bring the ketone technology to market. The trio parted ways, according to the factual section of the legal document filed last month. But then PruvIt and Axcess were able to come to an agreement and entered into contract.
Here's Why PruvIt is Suing
PruvIt is suing because they believe Axcess Global and ForeverGreen conspired together to shut PruvIt out the of marketplace. Not only that, but they're accusing defendants of attempting also to disparage the PruvIt name.
ForeverGreen allegedly re-awakened their interest in the ketone technology after learning that PruvIt had obtained the contract with Axcess Global Sciences. That's when they re-entered the game and allegedly conspired to shut PruvIt out.
PruvIt simply wants to be able to sell the products it's been preparing to sell all along.
Technically, the legal issue at hand here is breach of contract under Florida law, Fraud under Texas law, Business Disparagement and tortious interference under Texas law, and Lanham Act Violations under Texas law.
Here are the specific “breaches” under Florida Law:
— PruvIt was to receive the product formula within five days after signing the contract, but did not.
— Axcess Global breached the agreement by failing to license the technology, and then licensing it instead to ForeverGreen
— Axcess wrongfully sent a notice of termination to PruvIt
— PruvIt is seeking wrongful termination damages to the tune of $3 million +
Defendants are accused of misrepresentation, lying, and deception.
PruvIt is seeking trial by jury, monetary damages, and equitable damages. Keep your eyes peeled in the coming months for developments in this fascinating case. We will continue to make new updates to this post as they come to light.
What are your thoughts on the matter? Who is right? Who is wrong? And don't shy away from answering if you are a rep or not for each MLM business as you provide a comment.