Breaking: PruvIT Ventures, Inc. Files Lawsuit Against ForeverGreen and Axcess Global Sciences
We have big news to tell you today that involves three major MLMs.
PruvIT Ventures, Inc. recently filed a lawsuit against ForeverGreen (aka FGXpress) as well as Axcess Global Sciences.
The lawsuit alleges $3 million of damage.
Specifically, PruvIT is suing ForeverGreen for fraud, business disparagement, tortious interference with non-exclusive sublicense agreement, and Lanham Act violations.
Pruvit is also suing Axcess Global Sciences for breach of non-exclusive sublicense agreement, fraud, and promissory estoppel.
The lawsuit was filed on August 24, 2015 but details of the lawsuit didn’t go public until September 8, 2015. The lawsuit was filed in the U.S. District Court for the Eastern District of Texas Sherman Division. The Case number is #4:15CV00571.
The official names of the companies involved include:
-ForeverGreen International LLC (whose parent company is ForeverGreen Worldwide LLC)
-Axcess Global Sciences LLC
-PruvIT Ventures, Inc.
All lawsuits are being filed through PruvIT’s attorney, Jennifer Grace. The raw lawsuit document was published by Troy Dooly on Scribd.com here.
Background to the Lawsuit
ForeverGreen International LLC has had a good run in the direct selling industry with its FGXpress strips. They’ve been pumping them out for about a year and a half.
However, momentum on the FGXpress strips has recently trickled off. ForeverGreen claimed the strips worked for 100% of all users. In reality, they only worked for about 60% of all users.
In response to the changing market and facing flagging sales, ForeverGreen tried to launch a new ketone product. This ketone product triggered the lawsuit from PruvIT Ventures.
When the lawsuit went public on September 8, 2015, ForeverGreen’s stock plummeted from $1.20 to $0.79.
General Summary of the Case
Here are some of the key points to get from the lawsuit document that just went public:
“This matter arises from the desire to by Axcess to sell technology to the highest bidder no matter the cost or harm to the parties seeking to make the technology available for use.”
“Axcess Global is the exclusive licensee of ketone technology patented by the University of South Florida. Axcess stands to profit under the license based on the sublicensing of the technology to others via the receipt of a royalty and other consideration.”
“Axcess found interested parties in ForeverGreen and PruvIT. Unfortunately, after PruvIT entered into a binding contract with Axcess, and relied upon that in creating a complete company concept, Axcess sought to strike what it believed would be a more lucrative deal with ForeverGreen.”
“In the ultimate game of unfair competition, Axcess Global and ForeverGreen joined forces to shut PruvIT out of the market place and disparage its name to consumers. PruvIT seeks to ability to provide its customers with the technology for which it negotiated.”
Background to the Case
The parties of this lawsuit began their relationship as a collaboration. That collaboration had the goal of bringing the technology (ketones) developed at the University of South Florida to the marketplace.
PruvIT and Axcess entered into a non-exclusive sub license agreement on December 31, 2014.
After securing that agreement, PruvIT went ahead and launched their company.
Axcess, on the other hand, allegedly breached their non-exclusive agreement by going behind the backs of PruvIT and striking a deal with ForeverGreen.
After PruvIT signed the agreement on December 31, 2014, PruvIT understandably took upon developing the products, licensing the patents, developing the brand, and doing everything else as per the terms of the agreement. PruvIT had a product that was ready to go to market and was described as a “homerun”. That product was called Ketopia.
PruvIT claims Axcess Global then breached the agreement by failing to adequately license the technology to PruvIT, thereafter licensing the technology to ForeverGreen.
Axcess then disputed the existence of this contract and “embroiled themselves in the subterfuge between PruvIT and ForeverGreen”.
While all of this is going on, ForeverGreen is actively bringing their Ketosis product to market. That product is described as “mother’s milk loaded with ketones”.
Amount of Damages
PruvIT is seeking $3 million in damages for fraud. Axcess Global allegedly committed fraud by misrepresenting the status of the negotiations with ForeverGreen and the nature of its relationship with ForeverGreen.
What Does this Mean for Sales Representatives?
If you’re a sales representative for any of the companies involved, then the best advice I can give you is to watch what you’re saying about the other companies.
If you’re with ForeverGreen, it is not wise for you to write anything or say anything that could be classified as slander, defamation, interference, etc. If you go too far, then you could be entered into the lawsuit as well. That’s something you obviously want to avoid at all costs.
PruvIT reps, on the other hand, should avoid saying anything negative about ForeverGreen.
Basically, reps for both companies should just let their respective companies work things out on their own.
PruvIT and ForeverGreen are in two different situations at the moment. PruvIT reportedly just shipped $4 to $5 million of inventory.
ForeverGreen, on the other hand, is reportedly on their third autoship and is having trouble filling orders. Customers are being charged and nothing is being delivered. Due to the specific nature of their patent, ForeverGreen requires specific suppliers – and right now, those suppliers aren’t delivering.
Much of this information comes from Troy Dooly over at MLMHelpDesk.com, who personally knows many of the people involved with this issue. He’s passionately defending PruvIT in this case and claims that Axcess may have breached the terms of the agreement because they “wanted to make more money” and “because that’s how they operate”. He sums up his thoughts pretty clearly in this video.
Who is Jennifer Grace?
Jennifer Grace is the attorney for PruvIT. She’s not well-known, but she is very good. She’s not your typical network marketing attorney because she takes very few clients and avoids the limelight. She’s not an attention seeker. But when she does take on cases, she wins.
A few years ago, Jennifer Grace represented Terry LaCore at BHIP in his battle against Amway. Jennifer went up against Amway, a billion dollar company with a huge legal budget, and she won.
The point here is that many people feel Jennifer would not take the case unless she believed that there was strong underlying evidence for her client.
In other words, the fact that she has chosen to represent PruvIT may be very good news for PruvIT and its representatives.
Stay Tuned for More Updates!
What will happen going forward? We’ll be updating this post with all future updates so stay tuned for more information about PruvIT’s lawsuit against Axcess Global and ForeverGreen Worldwide LLC