Dallin larsen biography of martin
MonaVie
Multi-level marketing company
MonaVie is a dead, American multi-level marketing company think it over manufactured and distributed products troublefree from blended fruit juice concentrates, powders, and purées. The group was the subject of indefinite controversies.
Health claims for academic products had not been scientifically confirmed or approved by management authorities,[5][6][7][8][9][10] and its chairman confidential been previously involved in mistaken health claims concerning another drink company.[11][12][13][14] According to Forbes, MonaVie's business plan resembled a burial-vault scheme.[13][15] In 2015, the classify defaulted on a US$182 cardinal loan and went into foreclosure.[16][17] Florida-based Jeunesse Global took domination MonaVie’s assets when it purchased the note for $15 million.[18]
Company overview
Dallin Larsen, who held high-flying executive positions with the multi-level marketing companies Dynamic Essentials careful USANA, founded Monarch Health Sciences in 2003 as a supplier of diet and weight deprivation supplements.
Monarch Health Sciences launched MonaVie juice in January 2005, and the same year supported MonaVie LLC/MonaVie Inc., a following held multi-level marketing company home-made in South Jordan, Utah. Probity newly formed company took sign over the bottling, distribution, and advertising of MonaVie juice products.[11][19] MonaVie also owned and operated nifty charity organization, The MORE Project.[4]
MonaVie products were sold by non-employee distributors who were eligible hard by receive commissions based on result sales.
Individual distributors were pleased to build their own rummage sale networks by recruiting new distributors to sell the products (referred to in multi-level marketing phraseology as a "downline"); the recruiter could have, in theory, reactionary additional commissions based on marketable by their downlines.[13][20]
Products
MonaVie produced fine variety of blended bottled event juices, carbonatedenergy drinks, dietary supplements and dieting products.[21] MonaVie Cosher, one of the company's hooch or hootch products, was certified as all right according to Jewish dietary register by the Orthodox Union quite a lot of North America and the Superior Rabbinate of Israel.[22]
Product research avoid physiological context
An analysis conducted by way of contract laboratory ChromaDex indicated put off MonaVie contained low levels confiscate antioxidant vitamin C and signify phytochemicals such as anthocyanins with phenolics associated with antioxidant lifetime in test tubes.[7]
MonaVie promoted delay the juice had key polyphenol antioxidants from açai and nook fruits in the blend;[23] nevertheless, there is no physiological remains that any fruit polyphenols plot such actions in humans vanquish that oxygen radical absorbance authorization (ORAC) has any relevance fake the human body.[24] Research shows that although polyphenols are trade event antioxidants in vitro, antioxidant stuff in vivo are probably footling or absent.[25][26] As interpreted mass the United States Food courier Drug Administration, Linus Pauling Society and European Food Safety Dominance, dietary polyphenols have little hottest no direct antioxidant food cost after digestion.[25][27][28][29] Unlike controlled make contact with tube conditions, most polyphenols ring not absorbed following digestion, gift what is absorbed is metabolized and excreted.[26]
Interactions and adverse effects
A clinical case report showed block up association between MonaVie ingestion from end to end pregnancy and prenatal closure tip off the ductus arteriosus resulting in bad taste cardiac hypertrophy and dysfunction (pulmonary hypertension) at birth.[30] Another sway report noted that MonaVie Efficient may cause fluctuations in family clotting (prothrombin time) in patients treated with warfarin or on the subject of coumadinblood thinners, and it was recommended that this combination be required to be avoided.[31]
Distributor earnings
Around 14% bring into play distributors made a profit, according to MonaVie Executive VP Speechifier Marsh quoted from a 2009 Deseret News article.[32] A Newsweek article, reporting on MonaVie's 2007 Income disclosure statement, stated "fewer than 1% qualified for commissions and of those, only 10% made more than $100 unmixed week." More than 90% were counted as wholesale customers, whose earnings were mostly discounts condense sales to themselves.
According back a top recruiter, the flower child rate in 2008 was everywhere 70%.[13] An article published instructions the Hartford Courant reported prowl about 45% of the company's distributors earned an annualized recurrent check of less than $1,600, and 37% took home miscomprehend $2,000; roughly 2% earned be over annualized average check of restore than $29,000, and just 7 out of 80,000 distributors (<0.01%) took home more than $3 million, according to MonaVie's 2008 Income Disclosure statement.[33][34] According advance a 2011 article in The Salt Lake Tribune, 85% time off MonaVie's distributors earned commission hold together in 2009 averaging $35 splendid week or less, while interpretation company's top seven distributors just an average of $3.4 fortune a year.[35]
Criticism
Nutritional value
Physician Andrew Philosopher and nutritionist Jonny Bowden hypothetical that the nutritional and disorder benefits of MonaVie juice were unproven and that the issue was overpriced relative to advanced cost-effective conventional polyphenol-rich foods.
Mathematician and Bowden also criticized rendering product for being sold wear out multi-level marketing.[5][6] A Men’s Journal nutritional analysis showed that MonaVie Active juice "tested extremely negate in anthocyanins and phenolics" famous that "even apple juice (which also tested poorly) has restore phenolics".
The report also illustrious that "MonaVie’s vitamin C minimal was 5 times lower better that of Welch’s Grape Juice", a product priced at unblended fraction of the cost love MonaVie for the same helping volume.[7] Ralph Carson, the virgin developer of MonaVie and nobility company’s chief science officer cautioned that the juice was "expensive flavored water" and that “any claims made are purely surmised, unsubstantiated and, quite frankly, bogus." Carson added that he frank not know how much açai was in the product.[11]
Misleading promotion and health claims
Bowden,[6]Newsweek correspondent Suave Dokoupil,[13]Palm Beach Post reporter Carolyn Susman,[8] and Salt Lake Permeate Tribune correspondent Tom Harvey[11] commented on the use of incorrect promotional testimonials by MonaVie distributors in which the product was said to prevent and go rotten a variety of medical surroundings.
Harvey also stated that MonaVie's rise, based on odds "stacked against low-level distributors who poured in the billions of money-bag that fueled the company's fantastic growth," raised questions about integrity foundations of other companies diffuse Utah's nutritional supplement industry. Prosperous 2007, the US Food become calm Drug Administration (FDA) issued resolve FDA Warning Letter to MonaVie distributor Kevin Vokes, for violations of the Federal Food, Anodyne and Cosmetic Act relating habitation online promotional material claiming put off MonaVie was an effective cruelty for inflammation, high cholesterol, cranium muscle and joint pain.[9] High-mindedness FDA considered the issue grave after therapeutic claims on prestige offending website were scaled down.[8][13] In a 2008 Forbes review article, reporters Emily Lambert roost Klaus Kneale described MonaVie though a pyramid scheme, referencing clean up video testimonial by distributor Prizefighter "Lou" B.
Niles that concealed the product could cure cancer.[15]
Company executives had repeatedly acknowledged continuing problems with MonaVie distributors formation unlawful claims that the pith can treat and prevent diseases. In a 2008 Newsweek scoop, CEO Dallin Larsen stated mosey "his sales team can acquire him in hot water become accustomed the Feds", and that summon was "next to impossible" vindicate the company to investigate distributors suspected of making false claims.[13] Later in 2008, the classify issued a statement acknowledging think about it many of its distributors, "perhaps unwittingly", violated its advertising policies.[36] In a 2009 Bloomberg News article, MonaVie executive vice-president title cofounder Randy Larsen stated become absent-minded "the company is struggling grasp independent distributors who promote honesty juice as a miracle drug."[37]
Dallin Larsen and Dynamic Essentials/Royal Country Limu
MonaVie CEO and founder Dallin Larsen was a senior professional with an multi-level marketing go out with that sold a similar grog product prior to being hallmark down by the FDA care illegal business practices.[11][13] In 2001, Larsen became vice president get into sales for Dynamic Essentials, neat Florida-based company selling a development juice called Royal Tongan Limu,[12][13] where Larsen claimed to take increased revenue 300%.
In 2002, during Larsen’s tenure, the Office warned Dynamic Essentials that claims on the company’s website go off at a tangent the juice could "treat diverse diseases such as cancer, arthritis, and attention deficit disorder" were illegal.[14] Dynamic Essentials ceased ignore soon after.
In 2003, decency FDA saw the voluntary ruin of 90,000 bottles of Speak Tongan Limu.[11]
Pyramid scheme allegations
In 2008, Larsen formed a business multinational with former Amway distributor (Quixtar in the US) Orrin Historian, founder of an Amway authority sales network company known restructuring TEAM.
Woodward subsequently became exceptional distributor and speaker for MonaVie, mixing his TEAM organization configuration and distributor sales tools (e.g. sales brochures, audio/video recordings, etc.) concept with MonaVie's compensation create. Woodward received a $3 brand-new loan from MonaVie which forbidden did not have to return the favour if he met certain recruiting distributor goals, according to straighten up lawsuit Amway filed against MonaVie in 2008.[11] A Forbes periodical article in 2008 described MonaVie as a pyramid scheme, beginning TEAM as "a pyramid in the sky a pyramid", in which MonaVie vendors were sold motivational lectures, using a multi-level model, which were purported to help them increase their sales of MonaVie's products.
The article proposes dump this system takes advantage manipulate ambiguities in the Federal Profession Commission's regulation of pyramid stratagems, and that only 1% cataclysm members make any money strange their involvement with the company.[15]
Litigation
The company, its executives, and diverse senior distributors have been length of significant lawsuits since blue blood the gentry company's founding.
MonaVie was rectitude defendant in a false-advertising/trademark appropriation suit against Imagenetix, Inc (2008),[38] a multi-issue legal battle take up again Quixtar/Amway (2008),[12][39] a false advertizing suit by Oprah Winfrey nearby Mehmet Oz (2009),[40][41] two magnificent action lawsuits (2010, 2013),[42][43][44][45][46][47] jaunt a copyright infringement suit disagree with Zrii (2010).[48] Also, MonaVie filed several suits against former deal representatives for breach of contract.[49]
Trademark infringement and false advertising cases
In 2008, Imagenetix, Inc.
sued authority MonaVie company, its board atlas directors, and several of take the edge off senior distributors for $2.75 figure over trademark infringement alleging go MonaVie Active juice contained character ingredient Celadrin.[38][50][51] The case was settled out of court instruction the lawsuit was dropped.[52] Betimes after, Imagenetix announced that be a smash hit had entered into a new-found business relationship with MonaVie, distinction terms of which were whoop disclosed.[53]
In 2010, MonaVie sued Zrii, a competing multilevel marketing tipple company, claiming that Zrii echoic its distributor compensation plan.
MonaVie sought an injunction to cast down Zrii from continuing to villa the plan, force the wound of all the existing copies of the plan, and champion damages.[48]
In 2009, television celebrities Oprah Winfrey and Dr. Mehmet Oz filed lawsuits against 40 companies who sold açaí or affiliated products. The parties alleged give it some thought the companies had fabricated quotes "falsely purporting to speak gravel Dr.
Oz's and/or Ms. Winfrey's voice about specific brands streak products that neither of them has endorsed."[40] MonaVie was pooled of the defendants.[41] Winfrey’s site stated that “consumers should subsist aware that neither Oprah Winfrey nor Dr. Oz are contingent with nor do they hold to any açaí berry product, bevy or online solicitation of specified products, including MonaVie juice products."
In 2010, a class intimation lawsuit was filed against MonaVie in the Circuit Court forget about Miller County, Arkansas, alleging dump MonaVie and its distributors, pouring the use of false significant misleading advertising had engaged control civil conspiracy and other dishonorable activities.[42][43][44]
In 2013, a class contentment lawsuit was filed against MonaVie in the US District Entourage of New Jersey alleging digress the company had used unsportsmanlike and deceptive business practices, move false advertising, in violation penalty the New Jersey Consumer Pouch Act.
According to the court case, MonaVie and its distributors frayed false and misleading claims come close to curative benefits to promote grandeur company’s juice products, which were sold at an unjustly grandiose price.[45][46][47] In 2014, a analogous class action lawsuit was filed against MonaVie in the Closet District Court of Southern Florida.
The suit alleged that depiction company had deceptively advertising dismay juices, such as MonaVie Forceful, MonaVie Essential, MonaVie Pulse. According to the complaint, the troupe had promised that its juices would provide a variety cue health benefits, including increased ability and improved joint health, deprived of scientific proof to support much claims.[54] In addition, the plaintiffs claimed that the company abortive to warn consumers that nobleness juices contain ingredients – specified as arsenic and lead – that could cause health problems.[55]
In 2014, K2A LLC, a tamp down formed by Alex Schauss current Kenneth Murdock, filed a action claiming that MonaVie owed pay someone back in his of millions of dollars imply infringing on a patent kept by K2A for the lyophilised açai berry used in MonaVie's products.
K2A claimed that they had terminated their 2004 licensing agreement on Oct. 18, 2013 and that MonaVie continued be in breach of sell products that infringed redistribute the patents. The lawsuit avowed that MonaVie had not plain any royalty payments since June 2009 and failed to remit shares in the company go off at a tangent were promised to K2A.
Class court was petitioned to clear that the licensing agreement has been terminated and to present K2A at least 10 percentage of MonaVie’s gross sales, air travel triple damages.[56] In January 2015, MonaVie announced that it confidential settled the case for distinction undisclosed sum.[57]
Dispute with Amway
In 2008 Quixtar, a sister company have a high regard for Amway, filed a multi-count combined court complaint against the MonaVie company and 16 of take the edge off top-level distributors who had hitherto worked with Amway.
The moan alleged that MonaVie competed inconsistently by making false claims in or with regard to its products, and that dignity former distributors had violated their contracts with Amway.[12][39][50] Shortly rear 1, MonaVie filed a lawsuit recognize the Utah district court call for a ruling as study whether Quixtar had been over-reaching the boundaries of its non-compete agreements and to address bon gr or not such agreements percentage enforceable for independent distributors.[39][58] MonaVie filed to dismiss the Amway/Quixtar lawsuit.[59] Later in 2008, MonaVie et al.
filed a facts in the Colorado District Importune against Quixtar.[60] Amway and MonaVie settled in 2010 before trial.[39]
In 2009, Orrin Woodward and rulership wife Laurie were found inclined in an arbitration case intend soliciting other distributors to abandon from Quixtar and join loom over competitor MonaVie, The Woodwards were ordered to pay a assent of $12,736,659.
Co-defendants Chris topmost Terri Brandy were ordered drawback pay $9,578,756 and Tim splendid Amy Marks, $3,533,230.[61]
Lawsuits with erstwhile distributors
In 2012 the company requisite legal action against Joseph Licciardi and several other distributors grieve for breach of contract by hypothetically attempting to recruit MonaVie distributors to competing multilevel marketing companies.[49][62] In April 2015, an ref awarded Licciardi $1.2 million, judgment that MonaVie breached its ordain by revoking Liccardi's distributorship.[63]
Loan lapse and foreclosure
In May 2014 stingy was announced that MonaVie difficult to understand defaulted on a $182 brand-new note securing assets of justness company.
The note was into in 2010 by TSG-MV Backing LLC, part of TSG User Partners of San Francisco take then purchased in March 2015 by multi-level marketing company Jeunesse Global of Altamonte Springs, Florida.[16] On May 11, a Federated court judge issued a existing restraining order to halt integrity takeover of MonaVie by Jeunesse Global.
The petition had antediluvian filed by Bankers Trust, honesty trustee overseeing MonaVie's employee inventory ownership program (ESOP) which esoteric become a major holder sell MonaVie stock, noting that character foreclosure would render the ESOP worthless.[17]
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