Pruvit sue ForeverGreen for breach of contract & fraud
There’s trouble brewing in the “look at my pee!” ketone MLM niche…
At the center of the controversy are Pruvit, ForeverGreen and non-MLM entity, Axcess Global Sciences.
On August 24th, Pruvit filed a lawsuit against ForeverGreen and Axcess Global, accusing them of breach of contract, fraud.
For those unfamiliar Axcess Global Sciences, they are the
exclusive licensee of ketone technology patented by the University of South Florida.
Axcess stands to profit under the license based upon sublicensing of the technology to others via the receipt of a royalty and other consideration.
Pruvit contend that after rejecting “many offers” to license their technology, Axcess found two viable buyers in Pruvit and ForeverGreen.
Pruvit claim they were first to establish a “binding contract” with Axcess, which they then set about building the Pruvit MLM business opportunity around.
Possibly seeking to play Pruvit and ForeverGreen against eachother, Pruvit claim that Axcess
sought to strike what it believed would be a more lucrative deal with ForeverGreen.
In the ultimate game of unfair competition, Axcess Global and ForeverGreen joined forced to shut PruvIt out of the market place and disparage its name to consumers.
A deal seems to have been struck between ForeverGreen and Axcess, with Pruvit now seeking to regain its ‘ability to provide its customers with the technology for which it negotiated‘.
Following the signing of a non-exclusive contract between Pruvit and Axcess, Pruvit claim they were
to receive a single serve powder formula utilizing the Licensed Technology within five days of the signing of the agreement.
PruvIt did not receive a formula that utilized the Licensed Technology within the time period agreed.
Axcess Global, then also breached the Agreement by failing to adequately license the Technology to PruvIt, and thereafter licensing the Technology to ForeverGreen for use within the Licensed Territories.
While disputing the existence of the contract, Axcess wrongfully sent a notice of termination to PruvIt, and embroiled themselves in a subterfuge between PruvIt and ForeverGreen.
Pruvit state the damages caused by Axcess and ForeverGreen’s conduct is ‘likely to exceed $3,000,000‘.
In accusations of fruad leveled against Axcess, Pruvit are also unhappy with what was represented to them by Axcess staff:
Axcess, through its agent Rob Rogers misrepresented in a meeting between he and Brian Underwood of PruvIt in Dallas that all negotiations with ForeverGreen had ceased, and Axcess had the authority to License the Products and Processes in the Licensed Territory.
Axcess in emails from Gary Millet to Brian Underwood and others also falsely represented the nature of the Licensed Patents included the right associate nutritional ketosis with the possibility of weight loss.
Axcess promised to PruvIt that it had the right to license the USF technology and that the technology was significant to the general public as a result of its properties with respect to a weight loss campaign.
PruvIt relied on the promise of Axcess about the nature of the Licensed Patents and that it would not undermine PruvIt’s ability to utilize those patents.
PruvIt relied upon the promises of Axcess Global to its detriment.
ForeverGreen are on the hook for fraud too, with Pruvit alleging
ForeverGreen committed fraud through its misrepresentations concerning its dealings with Axcess Global.
ForeverGreen published disparaging comments about PruvIt and its rights to the Licensed Technology and Plaintiff’s economic interests and ability to provide the technology to its sales force.
ForeverGreen’s statements about its access to the patent inventor and the exclusivity of its rights as opposed to those of PruvIt are false and were published with malice.
The false statements were repeated online and through various media without a privilege to do so.
Asserting ForeverGreen was ‘well aware that PruvIt had a valid and existing contract with Axcess’, Pruvit conclude
Forever Green willfully interfered with that contract and encouraged Axcess to wrongfully terminate its contract with Axcess so that it could obtain rights that are lawfully those of PruvIt.
Forever Green then undertook to assert that PruvIt did not have rights to the Licensed Technology that Forever Green was fully aware were their rights.
With the misrepresentations about the rights of PruvIt, ForeverGreen undertook a pattern and practice of disparagement.
ForeverGreen’s interference with the contract between PruvIt and Axcess has caused PruvIt substantial harm and monetary damages.
In a civil lawsuit filed on August 24th in a Texas District Court, Pruvit are seeking
- expectancy damages
- reliance damages
- lost profits
- loss of credit
- loss of goodwill
- exemplary damages
- equitable damages
- court costs and
- attorneys’ fees
At the time of publication a summons was executed on both Axcess and ForeverGreen on August 24th, however a response from either party has yet to be filed.
To what extent ForeverGreen have banked their future on Axcess’ ketone products I’m not sure, but I do know Pruvit have essentially created their entire business around it.
Without access to the ketone products Pruvit are toast. Whether or not ForeverGreen are in the same boat could be interesting, as it puts this case in a position to decide which company survives.
Pruvit seem intent on claiming their territory exclusivity, which would make this an “all or nothing” case.
A compromise might be found later down the track, but with Pruvit already perhaps able to demonstrate ForeverGreen having interfered with their business, perhaps unlikely.
Who will win the MLM ketone pee war remains to be seen…
Footnote: Shout out to Troy Dooly for first reporting this case, a copy of Pruvit’s lawsuit along with Dooly’s own commentary are available on MLM HelpDesk.
Two interesting points about PruvIt’s complaint:
What is the current status of their license with Axcess Global? It seems PruvIt had a limited, non exclusive sub license to two patents owned by the University of South Florida licensed to Axcess.
PruvIt believes they controlled the MLM distribution rights in the US and Canada. They also believe that Axcess wrongfully terminated that sub license in favor of ForeverGreen.
Second, I’m not sure what to make of:
Excuse me, is there a factual question as to if the licensed patents can be represented as being associated with the “possibility of weight loss”? Isn’t that exactly what both these companies are claiming about the product?
It will be interesting to see Axcess and ForeverGreens response to the complaint.
At least one of these companies is very wrong in how they reguard their license status and it’s entirely possible that some time soon, either ForeverGreen or PruvIt will have to stop marketing the ketosis product.
Not to sure what the status of the licenses are, but Dooly is claiming Pruvit are shipping product and ForeverGreen affiliates are being charged autoship and not receiving anything.
PruvIt’s complaint didn’t include many details, it didn’t need to. So there is a lot of murk here.
I believe FG did ship initial orders of “Ketopia,” the public explanation of why it isn’t currently being shipped is that instead of importing finished product they’re moving formulation to their local facility and logistical issues are causing a temporary delay.
For all I know it may even be true. The scratch your chin and say Hmm question is if they are dinging people’s credit cards without shipping product within a day or so of doing so. They could be playing Russian Roulette with their merchant processing if they are. I have no confirmation either way on the issue.
But if PruvIt has something like a preliminary injunction against FG it would have been mentioned in their complaint so it’s safe to assume they are not the reason Ketopia isn’t shipping. PruvIt’s complaint was very focused on a sub license they believe they have and one they seem to imply that Axcess Global no longer believes they do.
Again, there is much murk here but this lawsuit aside, it sounds a lot like Pruvit is the one who are only burning through existing inventory. And the lawsuit is aimed at fixing that.
What a mess. I had the impression that FG had enough good things already going for it. Too bad they good greedy and wanted to go even faster.
Kinda makes me wonder whether the really big and established companies like Shaklee and perhaps a few others do in fact have wiser management.
art
What a #NetworkMarketing mess! As an #MLM professional, I think that anyone who decides to get involved with #Pruvit or #ForeverGreen at this juncture is making a big mistake & taking a huge risk due to this #Lawsuit.
There is really no way to know who will win this one!
Pruvit & ForeverGreen reps are caught in the crossfire of what should turn out to be an epic battle for the rights to #Ketosis for #weightloss.
the last place terry lacore and brian underwood of pruvit (just their latest of many, many one product MLMs they’ve cranked out and then been forced to close down with the feds at snipping at their heels) want to be with their history of fraud and SEC fines, is in a court room.
why would any licencing company trust their new ground-breaking technology to a start-up like pruvit, with no track record of producing and distributing any products?
let the facts come out and the mudslingers go home.
I signed on with ForeverGreen at 7am on July 13th. This was the day the product launched.
I still have not received my initial order and I’ve been charged for one autoship and I’ll be charged for another within a few days and I still have nothing.
It appears they are still shipping product from the pre-launch because I still have no tracking information for my order, but the company claims to be shipping product.
The company talks about how many kits they will ship out, but they never tell what order origination date they have shipped through. They will not tell how long it’s going to take to fulfill all of the order received.
They keep processing orders with no hope in sight.
Same here. I had 25 orders in at FGXpress and nothing shipped for 7 weeks.
I had to cancel them all. Lost all my customers. Very disappointed to say the least.
It is true that Forever Green has had some problems getting product out. I was told it was mainly due to the manufacturing company they hired… the company was just too small and couldn’t handle the demand.
I was also told that Forever Green has decided to manufacture the product themselves to avoid any further delays.
As far as Troy Dooly… he posted a video that was less than favorable towards Forever Green, and at the end of the video he discloses that Pruvit is a client of one of the companies that Troy owns, ergo, Pruvit is a client of Dooly.
I think we all know what happens when companies pay Dooly to promote them. Why anyone pays attention to anything that guy says is beyond me.
in response to pruvit’s lawsuit, axcess global [AG] and forevergreen [FG] filed their responses, chiefly alleging that pruvit’s sublicence from AG was ineffective/and or/terminated.
FG and AG allege that pruvit did not honor the terms of the non exclusive sublicense:
along with their response to pruvits lawsuit against them, AG and FG filed a plea for a temporary restraining order/preliminary injunction, to stop pruvit from selling its ketone product during pendency of the case.
AG and FG allege that pruvit is not licensed to sell the patented ketone product, and that its product is causing irreparable harm to forevergreens own sales of its ketone product.
on dec 23rd,2015, the district court judge made a ruling Denying the preliminary injunction. the judge found that though the allegation of pruvit not being a licensee, could arguably weigh in AG’s and FG’s favor, the defendants did not satisfy the arguments for ‘irreparable harm’.
so, the case moves to trial, unless the parties settle.
it seems that pruvit sells its ketone product at approx 30% less than forevergreen, and FG is quite pissed about this. pruvit launched it’s product approx two months ahead of FG, and according to FG, this gave them a momentum lead. i find these arguments unconvincing.
i think the case only finally hinges around the Actual Status of pruvit’s non exclusive sublicense from axcess global.
the courts order from mlmhelpdesk:
mlmhelpdesk.com/public_html/wp-content/Docs/PruvIT_FG/Doc0126.pdf
oops.
i should have posted this in
https://behindmlm.com/companies/forevergreen/forevergreen-take-high-road-in-pruvit-lawsuit/#comment-353073