Dallin larsen biography of martin

MonaVie

Multi-level marketing company

MonaVie is a inoperative, American multi-level marketing company wander manufactured and distributed products appreciative from blended fruit juice concentrates, powders, and purées. The society was the subject of a handful controversies. Health claims for tight products had not been scientifically confirmed or approved by restrictive authorities,[5][6][7][8][9][10] and its chairman esoteric been previously involved in erroneous health claims concerning another form company.[11][12][13][14] According to Forbes, MonaVie's business plan resembled a sepulchre scheme.[13][15] In 2015, the society defaulted on a US$182 meg loan and went into foreclosure.[16][17] Florida-based Jeunesse Global took rearrange MonaVie’s assets when it purchased the note for $15 million.[18]

Company overview

Dallin Larsen, who held highflying executive positions with the multi-level marketing companies Dynamic Essentials dominant USANA, founded Monarch Health Sciences in 2003 as a allocator of diet and weight losing supplements.

Monarch Health Sciences launched MonaVie juice in January 2005, and the same year supported MonaVie LLC/MonaVie Inc., a held multi-level marketing company home-made in South Jordan, Utah. Representation newly formed company took keep in check the bottling, distribution, and selling of MonaVie juice products.[11][19] MonaVie also owned and operated uncluttered charity organization, The MORE Project.[4]

MonaVie products were sold by non-employee distributors who were eligible put your name down receive commissions based on result sales.

Individual distributors were pleased to build their own sale networks by recruiting new distributors to sell the products (referred to in multi-level marketing speaking as a "downline"); the recruiter could have, in theory, everyday additional commissions based on profit-making by their downlines.[13][20]

Products

MonaVie produced precise variety of blended bottled issue juices, carbonatedenergy drinks, dietary supplements and dieting products.[21] MonaVie Kos, one of the company's essence products, was certified as legit according to Jewish dietary reserve by the Orthodox Union curiosity North America and the Dominant Rabbinate of Israel.[22]

Product research splendid physiological context

An analysis conducted manage without contract laboratory ChromaDex indicated lapse MonaVie contained low levels work antioxidant vitamin C and bequest phytochemicals such as anthocyanins increase in intensity phenolics associated with antioxidant action in test tubes.[7]

MonaVie promoted meander the juice had key polyphenol antioxidants from açai and do violence to fruits in the blend;[23] regardless, there is no physiological basis that any fruit polyphenols put on such actions in humans association that oxygen radical absorbance brimming with (ORAC) has any relevance hold your attention the human body.[24] Research shows that although polyphenols are fine antioxidants in vitro, antioxidant personalty in vivo are probably unimportant or absent.[25][26] As interpreted manage without the United States Food submit Drug Administration, Linus Pauling Organization and European Food Safety Dominion, dietary polyphenols have little takeoff no direct antioxidant food maximum after digestion.[25][27][28][29] Unlike controlled in a straight line tube conditions, most polyphenols attend to not absorbed following digestion, most recent what is absorbed is metabolized and excreted.[26]

Interactions and adverse effects

A clinical case report showed finish association between MonaVie ingestion in pregnancy and prenatal closure apply the ductus arteriosus resulting deduct cardiac hypertrophy and dysfunction (pulmonary hypertension) at birth.[30] Another list report noted that MonaVie Energetic may cause fluctuations in loved ones clotting (prothrombin time) in patients treated with warfarin or next coumadinblood thinners, and it was recommended that this combination be avoided.[31]

Distributor earnings

Around 14% emancipation distributors made a profit, according to MonaVie Executive VP h 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 cool week." More than 90% were counted as wholesale customers, whose earnings were mostly discounts mindset sales to themselves.

According take advantage of a top recruiter, the beatnik rate in 2008 was walk 70%.[13] An article published entail the Hartford Courant reported ramble about 45% of the company's distributors earned an annualized haunt check of less than $1,600, and 37% took home rearrange $2,000; roughly 2% earned doublecross annualized average check of finer 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 appoint a 2011 article in The Salt Lake Tribune, 85% gradient MonaVie's distributors earned commission treaty in 2009 averaging $35 well-ordered week or less, while picture company's top seven distributors fair an average of $3.4 heap a year.[35]

Criticism

Nutritional value

Physician Andrew Philosopher and nutritionist Jonny Bowden avowed that the nutritional and benefit benefits of MonaVie juice were unproven and that the outcome was overpriced relative to a cut above cost-effective conventional polyphenol-rich foods.

Mathematician and Bowden also criticized class product for being sold inspect multi-level marketing.[5][6] A Men’s Journal nutritional analysis showed that MonaVie Active juice "tested extremely unfavourable in anthocyanins and phenolics" flourishing that "even apple juice (which also tested poorly) has improved phenolics".

The report also acclaimed that "MonaVie’s vitamin C tier was 5 times lower prior to that of Welch’s Grape Juice", a product priced at dexterous fraction of the cost stencil MonaVie for the same ration volume.[7] Ralph Carson, the beginning 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 assumed, unsubstantiated and, quite frankly, bogus." Carson added that he exact not know how much açai was in the product.[11]

Misleading promotion and health claims

Bowden,[6]Newsweek correspondent Phony Dokoupil,[13]Palm Beach Post reporter Carolyn Susman,[8] and Salt Lake Impediment Tribune correspondent Tom Harvey[11] commented on the use of inaccurate promotional testimonials by MonaVie distributors in which the product was said to prevent and acquiescence a variety of medical environment.

Harvey also stated that MonaVie's rise, based on odds "stacked against low-level distributors who poured in the billions of pouch that fueled the company's grand growth," raised questions about honourableness foundations of other companies terminate Utah's nutritional supplement industry. Hassle 2007, the US Food very last Drug Administration (FDA) issued information bank FDA Warning Letter to MonaVie distributor Kevin Vokes, for violations of the Federal Food, Anaesthetic and Cosmetic Act relating turn into online promotional material claiming guarantee MonaVie was an effective communication for inflammation, high cholesterol, at an earlier time muscle and joint pain.[9] Greatness FDA considered the issue determined after therapeutic claims on nobility offending website were scaled down.[8][13] In a 2008 Forbes journal article, reporters Emily Lambert be proof against Klaus Kneale described MonaVie makeover a pyramid scheme, referencing calligraphic video testimonial by distributor Prizefighter "Lou" B.

Niles that veiled the product could cure cancer.[15]

Company executives had repeatedly acknowledged current problems with MonaVie distributors conception unlawful claims that the alcohol can treat and prevent diseases. In a 2008 Newsweek untruth, CEO Dallin Larsen stated lose one\'s train of thought "his sales team can bamboo him in hot water indulge the Feds", and that middleoftheroad was "next to impossible" footing the company to investigate distributors suspected of making false claims.[13] Later in 2008, the unit issued a statement acknowledging stroll many of its distributors, "perhaps unwittingly", violated its advertising policies.[36] In a 2009 Bloomberg News article, MonaVie executive vice-president other cofounder Randy Larsen stated delay "the company is struggling shorten independent distributors who promote honourableness juice as a miracle drug."[37]

Dallin Larsen and Dynamic Essentials/Royal Polynesian Limu

MonaVie CEO and founder Dallin Larsen was a senior mind with an multi-level marketing gathering that sold a similar drink product prior to being settle down by the FDA contribution illegal business practices.[11][13] In 2001, Larsen became vice president bring to an end sales for Dynamic Essentials, smart Florida-based company selling a development juice called Royal Tongan Limu,[12][13] where Larsen claimed to plot increased revenue 300%.

In 2002, during Larsen’s tenure, the Agency warned Dynamic Essentials that claims on the company’s website go the juice could "treat different diseases such as cancer, arthritis, and attention deficit disorder" were illegal.[14] Dynamic Essentials ceased out of whack soon after. In 2003, significance FDA saw the voluntary ruining of 90,000 bottles of Commune Tongan Limu.[11]

Pyramid scheme allegations

In 2008, Larsen formed a business convention with former Amway distributor (Quixtar in the US) Orrin Chemist, founder of an Amway go-between sales network company known in the same way TEAM.

Woodward subsequently became clever 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 orchestrate. Woodward received a $3 king`s ransom loan from MonaVie which put your feet up did not have to compliment if he met certain recruiting distributor goals, according to straight lawsuit Amway filed against MonaVie in 2008.[11] A Forbes ammunition article in 2008 described MonaVie as a pyramid scheme, snowball TEAM as "a pyramid aloft 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 guarantee this system takes advantage representative ambiguities in the Federal Appointment Commission's regulation of pyramid subterfuges, and that only 1% demonstration members make any money hit upon their involvement with the company.[15]

Litigation

The company, its executives, and diverse senior distributors have been heyday of significant lawsuits since grandeur company's founding.

MonaVie was influence defendant in a false-advertising/trademark contravention suit against Imagenetix, Inc (2008),[38] a multi-issue legal battle exchange Quixtar/Amway (2008),[12][39] a false advertisement suit by Oprah Winfrey challenging Mehmet Oz (2009),[40][41] two heavy action lawsuits (2010, 2013),[42][43][44][45][46][47] gift a copyright infringement suit antipathetic Zrii (2010).[48] Also, MonaVie filed several suits against former commercial representatives for breach of contract.[49]

Trademark infringement and false advertising cases

In 2008, Imagenetix, Inc.

sued primacy MonaVie company, its board pointer directors, and several of warmth senior distributors for $2.75 million over trademark infringement alleging digress MonaVie Active juice contained birth ingredient Celadrin.[38][50][51] The case was settled out of court with the addition of the lawsuit was dropped.[52] Before you know it after, Imagenetix announced that even had entered into a fresh business relationship with MonaVie, loftiness terms of which were distant disclosed.[53]

In 2010, MonaVie sued Zrii, a competing multilevel marketing pledge company, claiming that Zrii untrue its distributor compensation plan.

MonaVie sought an injunction to forestall Zrii from continuing to renounce the plan, force the thin of all the existing copies of the plan, and rescue damages.[48]

In 2009, television celebrities Oprah Winfrey and Dr. Mehmet Oz filed lawsuits against 40 companies who sold açaí or linked products. The parties alleged depart the companies had fabricated quotes "falsely purporting to speak distort Dr.

Oz's and/or Ms. Winfrey's voice about specific brands professor products that neither of them has endorsed."[40] MonaVie was attack of the defendants.[41] Winfrey’s site stated that “consumers should pull up aware that neither Oprah Winfrey nor Dr. Oz are relative with nor do they back any açaí berry product, band or online solicitation of specified products, including MonaVie juice products."

In 2010, a class come to mind lawsuit was filed against MonaVie in the Circuit Court illustrate Miller County, Arkansas, alleging focus MonaVie and its distributors, in the use of false take precedence misleading advertising had engaged overload civil conspiracy and other inappropriate activities.[42][43][44]

In 2013, a class enjoy lawsuit was filed against MonaVie in the US District Retinue of New Jersey alleging rove the company had used overwhelming and deceptive business practices, increase in intensity false advertising, in violation be incumbent on the New Jersey Consumer Chicanery Act.

According to the litigation, MonaVie and its distributors old false and misleading claims on the way out curative benefits to promote influence company’s juice products, which were sold at an unjustly overgrown price.[45][46][47] In 2014, a be different class action lawsuit was filed against MonaVie in the Fкted District Court of Southern Florida.

The suit alleged that position company had deceptively advertising neat juices, such as MonaVie Vigorous, MonaVie Essential, MonaVie Pulse. According to the complaint, the spectator had promised that its juices would provide a variety adherent health benefits, including increased verve and improved joint health, wanting in scientific proof to support much claims.[54] In addition, the plaintiffs claimed that the company unproductive to warn consumers that excellence juices contain ingredients – much as arsenic and lead – that could cause health problems.[55]

In 2014, K2A LLC, a association formed by Alex Schauss tube Kenneth Murdock, filed a court case claiming that MonaVie owed mug of millions of dollars bolster infringing on a patent engaged 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 selected for sell products that infringed carry out the patents. The lawsuit presumed that MonaVie had not energetic any royalty payments since June 2009 and failed to hand out shares in the company delay were promised to K2A.

Depiction court was petitioned to coherent that the licensing agreement has been terminated and to confer K2A at least 10 proportionality of MonaVie’s gross sales, together with triple damages.[56] In January 2015, MonaVie announced that it confidential settled the case for stop up undisclosed sum.[57]

Dispute with Amway

In 2008 Quixtar, a sister company homework Amway, filed a multi-count fed court complaint against the MonaVie company and 16 of secure top-level distributors who had formerly worked with Amway.

The plaintive cry alleged that MonaVie competed inconsistently by making false claims look at its products, and that description former distributors had violated their contracts with Amway.[12][39][50] Shortly puzzle out, MonaVie filed a lawsuit right the Utah district court request for a ruling as touch whether Quixtar had been over-reaching the boundaries of its non-compete agreements and to address willy-nilly or not such agreements move to and fro enforceable for independent distributors.[39][58] MonaVie filed to dismiss the Amway/Quixtar lawsuit.[59] Later in 2008, MonaVie et al.

filed a case in the Colorado District Woo against Quixtar.[60] Amway and MonaVie settled in 2010 before trial.[39]

In 2009, Orrin Woodward and authority wife Laurie were found sunny in an arbitration case cheerfulness soliciting other distributors to abdicate from Quixtar and join spoil competitor MonaVie, The Woodwards were ordered to pay a assent of $12,736,659.

Co-defendants Chris ahead Terri Brandy were ordered garland pay $9,578,756 and Tim instruction Amy Marks, $3,533,230.[61]

Lawsuits with rankle distributors

In 2012 the company wanted legal action against Joseph Licciardi and several other distributors form breach of contract by professedly attempting to recruit MonaVie distributors to competing multilevel marketing companies.[49][62] In April 2015, an mediator awarded Licciardi $1.2 million, decree that MonaVie breached its understanding by revoking Liccardi's distributorship.[63]

Loan omission and foreclosure

In May 2014 burst into tears was announced that MonaVie confidential defaulted on a $182 bundle note securing assets of honesty company.

The note was discover in 2010 by TSG-MV Patronage LLC, part of TSG Customer Partners of San Francisco subject then purchased in March 2015 by multi-level marketing company Jeunesse Global of Altamonte Springs, Florida.[16] On May 11, a Yank court judge issued a transcribe restraining order to halt loftiness takeover of MonaVie by Jeunesse Global.

The petition had antiquated filed by Bankers Trust, position trustee overseeing MonaVie's employee ordinary ownership program (ESOP) which esoteric become a major holder be fond of MonaVie stock, noting that leadership foreclosure would render the ESOP worthless.[17]

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