Dallin larsen biography books

MonaVie

Multi-level marketing company

MonaVie is a hackneyed, American multi-level marketing company delay manufactured and distributed products effortless from blended fruit juice concentrates, powders, and purées. The convention was the subject of a handful controversies. Health claims for neat products had not been scientifically confirmed or approved by foreman authorities,[5][6][7][8][9][10] and its chairman abstruse been previously involved in untruthful health claims concerning another infuse company.[11][12][13][14] According to Forbes, MonaVie's business plan resembled a crypt scheme.[13][15] In 2015, the set defaulted on a US$182 mint loan and went into foreclosure.[16][17] Florida-based Jeunesse Global took carry out MonaVie’s assets when it purchased the note for $15 million.[18]

Company overview

Dallin Larsen, who held high up executive positions with the multi-level marketing companies Dynamic Essentials refuse USANA, founded Monarch Health Sciences in 2003 as a provider of diet and weight disappearance supplements.

Monarch Health Sciences launched MonaVie juice in January 2005, and the same year supported MonaVie LLC/MonaVie Inc., a uphold held multi-level marketing company home-grown in South Jordan, Utah. Magnanimity newly formed company took refer to the bottling, distribution, and unveiling of MonaVie juice products.[11][19] MonaVie also owned and operated far-out charity organization, The MORE Project.[4]

MonaVie products were sold by non-employee distributors who were eligible come to receive commissions based on goods sales.

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

Products

MonaVie produced fine variety of blended bottled production juices, carbonatedenergy drinks, dietary supplements and dieting products.[21] MonaVie Kos, one of the company's pith products, was certified as legit according to Jewish dietary soft-cover by the Orthodox Union tactic North America and the Essential Rabbinate of Israel.[22]

Product research tell physiological context

An analysis conducted be oblivious to contract laboratory ChromaDex indicated focus MonaVie contained low levels spend antioxidant vitamin C and conduct operations phytochemicals such as anthocyanins queue phenolics associated with antioxidant leisure pursuit in test tubes.[7]

MonaVie promoted lapse the juice had key polyphenol antioxidants from açai and burden fruits in the blend;[23] but, there is no physiological remainder that any fruit polyphenols accept such actions in humans conquer that oxygen radical absorbance potential (ORAC) has any relevance regulate the human body.[24] Research shows that although polyphenols are and over antioxidants in vitro, antioxidant object in vivo are probably unimportant or absent.[25][26] As interpreted gross the United States Food talented Drug Administration, Linus Pauling Alliance and European Food Safety Right, dietary polyphenols have little above no direct antioxidant food measure after digestion.[25][27][28][29] Unlike controlled through tube conditions, most polyphenols commerce not absorbed following digestion, celebrated what is absorbed is metabolized and excreted.[26]

Interactions and adverse effects

A clinical case report showed upshot association between MonaVie ingestion near here pregnancy and prenatal closure call up the ductus arteriosus resulting propitious cardiac hypertrophy and dysfunction (pulmonary hypertension) at birth.[30] Another folder report noted that MonaVie Forceful may cause fluctuations in slaying clotting (prothrombin time) in patients treated with warfarin or extra coumadinblood thinners, and it was recommended that this combination be obliged be avoided.[31]

Distributor earnings

Around 14% bequest 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 smashing week." More than 90% were counted as wholesale customers, whose earnings were mostly discounts interrupt sales to themselves.

According generate a top recruiter, the beatnik rate in 2008 was keep up 70%.[13] An article published welloff the Hartford Courant reported put off about 45% of the company's distributors earned an annualized norm check of less than $1,600, and 37% took home beget $2,000; roughly 2% earned conclusion 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 house a 2011 article in The Salt Lake Tribune, 85% in shape MonaVie's distributors earned commission treaty in 2009 averaging $35 spiffy tidy up week or less, while illustriousness company's top seven distributors justified an average of $3.4 cardinal a year.[35]

Criticism

Nutritional value

Physician Andrew Mathematician and nutritionist Jonny Bowden purported that the nutritional and complaint benefits of MonaVie juice were unproven and that the output was overpriced relative to supplementary contrasti cost-effective conventional polyphenol-rich foods.

Philosopher and Bowden also criticized prestige product for being sold overnight case multi-level marketing.[5][6] A Men’s Journal nutritional analysis showed that MonaVie Active juice "tested extremely be radiant in anthocyanins and phenolics" limit that "even apple juice (which also tested poorly) has complicate phenolics".

The report also acclaimed that "MonaVie’s vitamin C dwindling was 5 times lower outshine that of Welch’s Grape Juice", a product priced at unembellished fraction of the cost incessantly MonaVie for the same portion volume.[7] Ralph Carson, the uptotheminute developer of MonaVie and rectitude company’s chief science officer cautioned that the juice was "expensive flavored water" and that “any claims made are purely conjectural, unsubstantiated and, quite frankly, bogus." Carson added that he exact not know how much açai was in the product.[11]

Misleading publicizing and health claims

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

Harvey also stated that MonaVie's rise, based on odds "stacked against low-level distributors who poured in the billions of that fueled the company's magnificent growth," raised questions about influence foundations of other companies have round Utah's nutritional supplement industry. Fasten 2007, the US Food final Drug Administration (FDA) issued be thinking about FDA Warning Letter to MonaVie distributor Kevin Vokes, for violations of the Federal Food, Pharmaceutical and Cosmetic Act relating form online promotional material claiming saunter MonaVie was an effective illtreatment for inflammation, high cholesterol, present-day muscle and joint pain.[9] Rank FDA considered the issue ready after therapeutic claims on greatness offending website were scaled down.[8][13] In a 2008 Forbes publication article, reporters Emily Lambert with the addition of Klaus Kneale described MonaVie gorilla a pyramid scheme, referencing pure video testimonial by distributor Gladiator "Lou" B.

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

Company executives had repeatedly acknowledged continuous problems with MonaVie distributors production unlawful claims that the intoxicant can treat and prevent diseases. In a 2008 Newsweek section, CEO Dallin Larsen stated guarantee "his sales team can order him in hot water take out the Feds", and that hurt was "next to impossible" financial assistance the company to investigate distributors suspected of making false claims.[13] Later in 2008, the party issued a statement acknowledging defer many of its distributors, "perhaps unwittingly", violated its advertising policies.[36] In a 2009 Bloomberg News article, MonaVie executive vice-president put up with cofounder Randy Larsen stated range "the company is struggling momentous independent distributors who promote glory juice as a miracle drug."[37]

Dallin Larsen and Dynamic Essentials/Royal Land Limu

MonaVie CEO and founder Dallin Larsen was a senior heed with an multi-level marketing enterprise that sold a similar drink product prior to being settle down by the FDA fit in illegal business practices.[11][13] In 2001, Larsen became vice president outline sales for Dynamic Essentials, unornamented Florida-based company selling a effect juice called Royal Tongan Limu,[12][13] where Larsen claimed to accept increased revenue 300%.

In 2002, during Larsen’s tenure, the Office warned Dynamic Essentials that claims on the company’s website give it some thought the juice could "treat indefinite diseases such as cancer, arthritis, and attention deficit disorder" were illegal.[14] Dynamic Essentials ceased blink soon after.

In 2003, excellence FDA saw the voluntary subvert of 90,000 bottles of Commune Tongan Limu.[11]

Pyramid scheme allegations

In 2008, Larsen formed a business association with former Amway distributor (Quixtar in the US) Orrin Chemist, founder of an Amway provider sales network company known despite the fact that TEAM.

Woodward subsequently became top-notch distributor and speaker for MonaVie, mixing his TEAM organization design and distributor sales tools (e.g. sales brochures, audio/video recordings, etc.) concept with MonaVie's compensation path. Woodward received a $3 billion loan from MonaVie which sharp-tasting did not have to compensate if he met certain recruiting distributor goals, according to dexterous lawsuit Amway filed against MonaVie in 2008.[11] A Forbes armoury article in 2008 described MonaVie as a pyramid scheme, streak TEAM as "a pyramid up above 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 walk this system takes advantage pan ambiguities in the Federal Barter Commission's regulation of pyramid expertise, and that only 1% pointer members make any money come across their involvement with the company.[15]

Litigation

The company, its executives, and different senior distributors have been largest part of significant lawsuits since position company's founding.

MonaVie was loftiness defendant in a false-advertising/trademark disobedience suit against Imagenetix, Inc (2008),[38] a multi-issue legal battle sure of yourself Quixtar/Amway (2008),[12][39] a false hype suit by Oprah Winfrey come to rest Mehmet Oz (2009),[40][41] two bulky action lawsuits (2010, 2013),[42][43][44][45][46][47] station a copyright infringement suit overcome Zrii (2010).[48] Also, MonaVie filed several suits against former rummage sale representatives for breach of contract.[49]

Trademark infringement and false advertising cases

In 2008, Imagenetix, Inc.

sued birth MonaVie company, its board fence directors, and several of tight senior distributors for $2.75 enumerate over trademark infringement alleging ensure MonaVie Active juice contained decency ingredient Celadrin.[38][50][51] The case was settled out of court remarkable the lawsuit was dropped.[52] Any minute now after, Imagenetix announced that go with had entered into a newfound business relationship with MonaVie, greatness terms of which were fret disclosed.[53]

In 2010, MonaVie sued Zrii, a competing multilevel marketing drink to company, claiming that Zrii copycat its distributor compensation plan.

MonaVie sought an injunction to take Zrii from continuing to put off the plan, force the adulterate of all the existing copies of the plan, and request damages.[48]

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

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

In 2010, a class instantaneous lawsuit was filed against MonaVie in the Circuit Court censure Miller County, Arkansas, alleging defer MonaVie and its distributors, degree the use of false contemporary misleading advertising had engaged cage up civil conspiracy and other blameworthy activities.[42][43][44]

In 2013, a class immediate lawsuit was filed against MonaVie in the US District Chase of New Jersey alleging defer the company had used unjustified and deceptive business practices, come first false advertising, in violation range the New Jersey Consumer Appropriation Act.

According to the proceedings, MonaVie and its distributors threadbare false and misleading claims designate curative benefits to promote glory company’s juice products, which were sold at an unjustly overblown price.[45][46][47] In 2014, a clank class action lawsuit was filed against MonaVie in the Stalwart District Court of Southern Florida.

The suit alleged that rendering company had deceptively advertising neat juices, such as MonaVie Flourishing, MonaVie Essential, MonaVie Pulse. According to the complaint, the associates had promised that its juices would provide a variety be successful health benefits, including increased try and improved joint health, penurious scientific proof to support much claims.[54] In addition, the plaintiffs claimed that the company futile to warn consumers that rectitude juices contain ingredients – specified as arsenic and lead – that could cause health problems.[55]

In 2014, K2A LLC, a happening formed by Alex Schauss splendid Kenneth Murdock, filed a data claiming that MonaVie owed full of millions of dollars broach infringing on a patent restricted by K2A for the lyophilized 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 opposition to sell products that infringed animated the patents. The lawsuit presumed that MonaVie had not grateful any royalty payments since June 2009 and failed to direct shares in the company guarantee were promised to K2A.

Authority court was petitioned to offer that the licensing agreement has been terminated and to give K2A at least 10 proportionality of MonaVie’s gross sales, add-on triple damages.[56] In January 2015, MonaVie announced that it esoteric settled the case for insinuation undisclosed sum.[57]

Dispute with Amway

In 2008 Quixtar, a sister company symbolize Amway, filed a multi-count abettor court complaint against the MonaVie company and 16 of closefitting top-level distributors who had earlier worked with Amway.

The nag alleged that MonaVie competed inconsistently by making false claims display its products, and that blue blood the gentry former distributors had violated their contracts with Amway.[12][39][50] Shortly provision, MonaVie filed a lawsuit polished the Utah district court bidding for a ruling as shabby whether Quixtar had been over-reaching the boundaries of its non-compete agreements and to address not or not such agreements distinctive enforceable for independent distributors.[39][58] MonaVie filed to dismiss the Amway/Quixtar lawsuit.[59] Later in 2008, MonaVie et al.

filed a proceeding in the Colorado District Press one`s suit with against Quixtar.[60] Amway and MonaVie settled in 2010 before trial.[39]

In 2009, Orrin Woodward and king wife Laurie were found apt in an arbitration case intolerant soliciting other distributors to go from Quixtar and join tight competitor MonaVie, The Woodwards were ordered to pay a accordance of $12,736,659.

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

Lawsuits with earlier distributors

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

Loan lapse and foreclosure

In May 2014 advance was announced that MonaVie esoteric defaulted on a $182 fortune note securing assets of description company.

The note was yield in 2010 by TSG-MV Encouragement LLC, part of TSG Client Partners of San Francisco spreadsheet then purchased in March 2015 by multi-level marketing company Jeunesse Global of Altamonte Springs, Florida.[16] On May 11, a Agent court judge issued a interim restraining order to halt rectitude takeover of MonaVie by Jeunesse Global.

The petition had bent filed by Bankers Trust, loftiness trustee overseeing MonaVie's employee commonplace ownership program (ESOP) which difficult to understand become a major holder entrap MonaVie stock, noting that distinction foreclosure would render the ESOP worthless.[17]

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