Former Grasp Distributor Michael Rutherford has sued Pruvit and CEO Brian Underwood… once more.
The June twentieth Texas filed lawsuit is the most recent authorized escalation between Rutherford and his former MLM firm.
To recap;
- Rutherford sued Pruvit in June 2023, alleging his commissions had tanked, been suspended and Underwood had been misappropriating his earnings (Underwood wished to make the association official after Pruvit stopped paying government commissions)
As a substitute of submitting a counterclaim, Rutherford and O’Neal have now filed their very own lawsuit. Pruvit and Underwood are named defendants.
Rutherford states he filed his personal lawsuit due to a pending Movement to Dismiss within the Pruvit case, in addition to an accompanying movement searching for emergency reduction.
Not surprisingly, Rutherford’s lawsuit additionally pertained to the reached settlement with Pruvit. Particulars of that are offered in Rutherford’s Criticism;
The settlement settlement set forth the next phrases:
a. That Plaintiffs had been now not allowed to “take part, in any manner, with actions associated to” Pruvit;
b. That whereas Rutherford was now not allowed to take part in Pruvit, he was nonetheless entitled to “obtain 100% of all commissions associated” to his distributorship place with a most cap “of $100,000 per 30 days of earnings . . .”; and
c. That Pruvit and Underwood “is not going to take any motion to reallocate any [distributor] in [Rutherford’s] downline . . .”
As well as, the settlement settlement contained the next imprecise provision concerning the usage of social media:
a. Removing of Social Media Posts. Rutherford and O’Neal shall instantly take away any disparaging remarks concerning Pruvit, Underwood, or any of their Representatives from any and all social media websites or functions managed by Rutherford, O’Neal, and/or their Representatives.
Additional, Rutherford and O’Neal shall unfriend and take away (as relevant):
(1) all Rutherford Social Media any present for former Pruvit promoter that Rutherford and/or O’Neal has not private enrolled in Pruvit; and
(2) any individual that asks to be unfriended or faraway from Rutherford Social Media.
TL;DR: Pruvit agreed to maintain paying Rutherford as much as $100,000 a month for leaving the corporate, and Rutherford agreed to take away anybody from his social media followers who he didn’t personally recruit into Pruvit.
Rutherford argues that “instantly after executing the settlement settlement”, Underwood set about screwing him over.
Underwood, on behalf of himself and Pruvit, took actions to undermine the contract’s phrases and to make sure that Rutherford didn’t obtain the good thing about his cut price.
First, Underwood started recruiting distributor’s in Rutherford’s downline to hitch a competing MLM named Frequence.
I simply wish to interject right here as a result of the above sentence (emphasis mine), is extraordinarily bizarre.
Now we have Brian Underwood, the CEO of Pruvit, allegedly cross-recruiting Pruvit distributors into Frequense.
Frequense is one other LaCore Enterprises MLM firm, fronted by Barb and Dave Pitcock.
Along with Underwood’s alleged recruiting being irresponsible conduct from a company government with fiduciary duties, it’s additionally fully at odds with a Pruvit press-release despatched out on June 18th.
Within the press-release Underwood, Terry LaCore and Chris Harding introduced they had been promoting Pruvit again to themselves (yeah I do know that’s additionally bizarre but it surely’s oddly the least bizarre factor about all of this).
“We’re thrilled to announce that we’re bringing Prüvit again to its roots,” mentioned Brian Underwood, one of many unique founders.
“This reacquisition is not only a enterprise determination however a step in direction of honoring the legacy that Prüvit has created and making certain its continued influence sooner or later.”
The reacquisition goals to refocus on the core values and fundamentals which have been instrumental in Prüvit’s journey to this point.
The founders consider that this transfer will strengthen the corporate’s market place and improve its skill to innovate and ship worth to its prospects.
How is Underwood allegedly cross-recruiting into Frequense “honoring Pruvit’s legacy” or “strengthening the corporate’s market place”?
Pour one out for the remaining Pruvit distributors who weren’t allegedly cross-recruited and are simply discovering out about this now.
Getting again to Rutherford’s Criticism;
Underwood had a monetary curiosity in Frequence – therefore, his efforts to take members of Rutherford’s downline to the competing firm.
Additionally, Underwood recruited members in Rutherford’s downline and positioned them in numerous downlines, thereby eradicating them totally from Rutherford’s enterprise. These actions had an opposed influence on Rutherford’s fee.
Along with Underwood’s alleged conduct, Rutherford additionally claims Pruvit’s compensation adjustments screwed him over too.
Instantly following the execution the settlement settlement, Underwood and Pruvit made adjustments to the corporate’s Compensation Plan which prohibited Rutherford from receiving 100% of his commissions except he was capable of take part in Pruvit’s enterprise (which, as said above, Rutherford was not permitted to).
Pruvit and Underwood made these adjustments unilaterally, in unhealthy religion understanding that Rutherford wouldn’t have the ability to qualify for all his commissions as a result of restrictions contained within the settlement settlement, thereby breaching the contract.
Rutherford moreover claims the Pruvit compensation adjustments noticed distributors in his downline “go away the corporate”.
Pruvit and Underwood brought on many distributors in Rutherford’s downline to go away his group.
Consequently, Rutherford’s commissions additionally had been drastically decreased, thereby inflicting financial hurt to him.
Rutherford claims upon contacting Pruvit a few proposed modification to the settlement settlement, Pruvit “reduce off his commissions fully” and filed swimsuit towards him.
Particular to Keisha O’Neal, Pruvit is alleged to have contacted her about social media settlement settlement violations.
The letter additionally alleged that O’Neal was in violation of a non-solicitation provision contained within the settlement settlement.
O’Neal claims she didn’t know who she was soliciting and who Pruvit wished her to take away as mates from her social media accounts.
So, to make sure compliance with the settlement settlement, O’Neal contacted Pruvit and inquired as to the premise of the alleged violations.
Throughout these discussions, the events agreed that if O’Neal produced a full listing of all her Fb “mates” to Pruvit, it could then determine which individuals, if any, had been present or former distributors for Pruvit and would make a requirement that these folks be “unfriended” from O’Neal’s Fb.
If this was carried out, then the events agreed that compliance of the settlement settlement’s phrases had been glad.
Following execution of the settlement, Pruvit is alleged to have “acknowledged O’Neal’s compliance to the settlement settlement” in November 2023.
Then, out of nowhere, on January 31, 2024, Pruvit filed a lawsuit towards O’Neal within the District Courtroom of Texas, Clark County for allegedly violating the social media provision and the non-solicitation provision.
That case was later eliminated to the US District Courtroom of Texas within the Japanese District.
Rutherford went by way of the identical ordeal. However when he despatched Pruvit an inventory of his social media mates, Pruvit allegedly
determined to unilaterally change the phrases of the settlement settlement.
Whereas the settlement settlement offered solely that Rutherford “unfriend and take away (as relevant)” all individuals related along with his social media, Pruvit then demanded that not solely should be “unfriend” folks related to Pruvit, but additionally that he couldn’t permit any Pruvit distributors to “comply with” his social media.
Rutherford claims he advised Pruvit he “couldn’t management who determined to “comply with” his social media”.
Pruvit didn’t clarify, in any vogue, how somebody who “adopted” his social media was a violation of the settlement settlement.
As a substitute, Pruvit merely proceeded to file a lawsuit towards him and O’Neal.
Throughout three counts, Rutherford and O’Neal have sued Pruvit and Underwood for breach of written contract, fraud and violation of enterprise and commerce code (chapter 54).
Rutherford and O’Neal are searching for compensatory damages, exemplary damages, treble damages and authorized prices.
With respect to Rutherford’s accompanying emergency movement, a Momentary Restraining Order (TRO) and preliminary injunction are sought.
Pruvit had no proper to droop paying Rutherford his commissions and as such Rutherford as a chance of success on the deserves of his breach of contract declare towards Pruvit.
Except Rutherford’s commissions are restored, he’ll undergo irreparable hurt. Rutherford is at the moment in a marital custody battle concerning visitation rights over two of his kids.
He depends on this earnings to pay for his and his kids’s well-being in addition to his authorized providers up to now.
With out that earnings, Rutherford shall be unable to pay the price of his custody case and can lose visitation rights over his two kids.
Moreover, Rutherford shall be homeless.
Via the requested TRO and preliminary injunction, Rutherford seeks to pressure Pruvit to renew paying him
100% of his commissions till a trial on the deserves of Rutherford’s breach of contract declare, or till after fee expires beneath the phrases of the settlement settlement.
As at time of publication, a call on Rutherford’s emergency movement stays pending.
I’ve added Rutherford’s newest Pruvit lawsuit to BehindMLM’s calendar. Keep tuned for updates as we proceed to trace the case.