Quixtar terminates 15 businesses

Datamonitor NewsWire
By Staff
August 15, 2007

HIGHLIGHT: Quixtar, an e-tailer and direct seller, has announced the termination of 15 independent businesses as a result of actions detrimental to the company's North American operations.

The businesses affected were part of the Team training organization or other training organizations using Team's training materials and named as co-plaintiffs in a lawsuit filed by Team's founders against Quixtar.

Quixtar was working with Orrin Woodward and Chris Brady, founders of the Team training organization, to correct issues related to Team's teaching of inappropriate business-building tactics, improper positioning of the opportunity, and use of unauthorized support materials. These teachings placed themselves, affiliated Independent Business Owners (IBOs), and Quixtar at serious and immediate risk of legal and regulatory actions and had to be stopped, according to the company.

Mr Woodward and Mr Brady refused to work with the company to return Team to compliance with Quixtar's rules, stated their intentions of starting a new company in competition with Quixtar, and filed a lawsuit against the company seeking relief from their non-compete requirements.

Due to their refusal to correct their business practices, Quixtar terminated the independent businesses of Mr Woodward and Mr Brady as well as those who joined them as plaintiffs in a class action lawsuit, filed in a California district court. A temporary restraining order and preliminary order of injunction was sought by the company and granted in a Michigan district court, preventing Mr Woodward and Mr Brady from interfering with the Quixtar Line of Sponsorship (LOS), soliciting IBOs for another business opportunity, disparaging Quixtar and damaging its reputation, and requiring them to return to Quixtar its proprietary and confidential LOS data.

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