Following a bench trial back in February, Michael Rutherford has prevailed against defendants Brian Underwood and Pruvit.

In a September 16th filed Findings of Fact, the court ruled Pruvit violated a previously reached settlement with Rutherford.

The settlement was reached in 2023 and ended Rutherford’s first lawsuit.

As per the settlement, Rutherford was entitled to earn commissions on his Pruvit promoter position. A $100,000 monthly cap was implemented, with 25% of commissions going to then Pruvit co-founder and CEO, Brian Underwood.

The court found Pruvit breached the settlement, prompting Rutherford’s second lawsuit,

by altering Plaintiff’s compensation in ways inconsistent with the terms of the parties’ bargain for two reasons.

First, Defendant Pruvit improperly withheld commissions from levels 9, 10, and 11.

Second, Defendant Pruvit improperly terminated Plaintiff’s commissions after April 17, 2024.

The court rejected Pruvit’s defense that it was justified in breaching the settlement because Rutherford

  • didn’t block and/or unfriend Pruvit promoters on social media;
  • continued to communicate with the “Pruvit community”; and
  • solicited Pruvit promoters “to join other ventures”.

The settlement agreement does not contain any term requiring Plaintiff to block individuals on social media.

As to communications with Defendant Pruvit’s community, the evidence in the record does not show by a preponderance that Plaintiff engaged in solicitation in violation of the agreement.

[Pruvit’s Chief General Counsel Jennifer] Grace testified generally that Plaintiff continued to communicate and solicit others, but she did not persuasively identify a specific action that definitely breached the contract.

The court ruled Pruvit was liable for damages as a result. Brian Underwood was deemed to be not individually liable, beyond benefitting from his 25% settlement commissions carveout.

Interestingly, the court rejected Rutherford’s claim he was “owed over $600,000”. The court found Rutherford’s figure was “a rough approximation not supported by contemporaneous records”.

Instead, the Court finds that Plaintiff’s monthly earnings during the baseline period averaged approximately $48,500.

This amount was based on examination of “financial log payments” provided by Pruvit.

In calculating $235,166 in damages awarded to Rutherford, the court restricted calculations up until the trial date. Rutherford was also awarded legal costs and post-judgment interest.

Pruvit was ordered to reinstate Rutherford’s commissions from the trial date till completion of the originally agree upon three-year settlement period.

In March 2025, Underwood and fellow Pruvit co-founder Terry LaCore sold Pruvit to Herbalife.