Youngevity preliminary injunction against Wakaya Perfection denied
As part of their lawsuit against Wakaya Perfection, in May Youngevity filed for a preliminary injunction against Total Nutrition Team, Inc., Todd Smith, and Blake Graham.
If granted, Youngevity’s preliminary injunction would compel ‘Todd Smith, Blake Graham, TNT and their agents to cease further use of 1-800-Wallach and delete wallachonline.com and Yteamtools.com.‘
In a decision filed on June 29th, Youngevity’s request for a preliminary injunction has been denied.
Unfortunately the merits of the preliminary injunction request have not been fleshed out, with the motion denied on the basis of pleading deficiencies in Youngevity’s complaint.
The company is free to file another preliminary injunction motion, after the noted deficiencies have been addressed in their complaint.
Also addressed in the order was Wakaya Perefections’ motion to dismiss.
Wakaya Perfection had primarily argued that Youngevity’s lawsuit fell under California’s Anti-SLAPP laws (curtailing of free speech), or in the alternative, ‘for failure to state a claim upon which relief can be granted‘.
The Anti-SLAPP motion was denied, on the basis ‘commercial speech is expressly exempt‘.
This would appear to be a pretty glaring obstacle to overcome given both Youngevity and Wakaya Perfection are commercial businesses. Personally I’m a bit surprised Wakaya Perfection’s lawyers thought to include it.
Wakaya Perfection fared better in their motion to dismiss on the basis of “failing to state a claim was also denied”.
The motion was granted on the basis of Youngevity’s lawsuit being ‘imprecise in identifying what factual allegations support what causes of action‘.
In laymen’s terms, Youngevity failed to explicitly connect the allegations in their complaint with their stated causes of action.
This ruling sees Youngevity’s first, second, third, and eighth causes of action knocked out of their complaint.
Respectively, these counts were Intentional interference with prospective advantage, Intentional interference with contract / Inducing breach of contract, Conspiracy and Breach of fiduciary duty.
Youngevity have been given until July 13th to file an amended complaint. Stay tuned…
Update 20th July 2016 – Youngevity filed an amended complaint on July 13th. A second Motion for a Preliminary Injunction was the filed on July 18th.
As of yet Wakaya Perfection have yet to respond to the new complaint or preliminary injunction motion.
Update 11th December 2016 – On December 1st Youngevity was granted a preliminary injunction.