The lawsuit is available here and is an interesting read. Primarily they are pursuing the fact that TEAM has taken "propriety information" of Quixtar, namely the IBO names and structure downline. Furthermore –
38. On information and belief, TEAM started planning to launch a new competing multi-level marketing company at least as early as the first half of 27, and, at the same time, to stop promoting and supporting the Quixtar business.
TEAM IBOs have of course denied this allegation, though I’d note there was a comment on this sites forums more than 3 months ago from an IBO stating they’d been told* –
In the leadership training after, this gentleman said that if "THE TEAM" has any more challenges with their "servicing corp" they were going to find a new one!
So it had quite obviously been discussed. Interestingly, on the day Woodward and Brady were terminated I posted about it, without naming names and asked if anyone could guess who was involved. The same poster as above immediately named Orrin Woodward. I asked why and he replied –
Himself and another Diamond have flat-out said to their leadership team that they would leave if Amway replaces Q*. My 2 ears heard from one of them personally.
So you can clearly take TEAM’s denials with a very large grain of salt.
Interestingly, in the lawsuit Quixtar states –
"4. TEAM required its customers to use their unique Quixtar IBO registration number as a password for entering TEAM controlled web sites and meetings, or as a prerequisite for obtaining a TEAM number for access to those websites and meetings. Recently, TEAM assigned new TEAM numbers to all TEAM-affiliated Quixtar IBOs in anticipation of a mass exodus from Quixtar, solicited and orchestrated by TEAM.
and, quite damningly –
42. On information and belief, TEAM has negotiated with at least one new supplier as a source of products for TEAM’s new multi-level marketing company.
Of course, whether this happened before or after the termination is rather important, and not mentioned. The suit goes on to mention something I hadn’t considered –
53. For example, TEAM and its agents continue to hold TEAM meetings around the country on Tuesday and Saturday nights. TEAM publicizes and generates attendance at these meetings through the use of Quixtar’s LOS information.
54. TEAM used Quixtar LOS information to heavily promote a “major function” in Louisville, Kentucky scheduled for the weekend of October 19, 27.
On the face of it, this is entirely correct. How the LOS information is regarded by a judge will be quite interesting to see. The suit continues with numerous instances where TEAM is using LOS information to compete or disparage Quixtar, including voicemails and emails.
The gloves are truly off in this case though – Quixtar is asking for damages.
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* Alticor legal – if you get the idea to sue to find out the identity of the person, don’t bother, just email me, email@example.com and ask, and I’ll ask him! Saves a lot of time and stress 🙂