Local distributor pulled from lawsuit against Quixtar

By David DeKok
The Patriot-News
August 15, 2007

A Lower Paxton Twp. man says his inclusion as a plaintiff in a lawsuit against multilevel marketing firm Quixtar Inc. was "an error," and he has been removed from the legal action.

Fred Harteis, president of Harteis International at 7955 Jonestown Road, said yesterday through a spokeswoman that he remains a distributor for Quixtar, a corporate cousin of the better-known Amway Corp. of Ada, Mich.

The lawsuit contends that Quixtar is an illegal pyramid scheme, violating rules set by the Federal Trade Commission after previous litigation involving Amway.

The suit also claims that Quixtar products are overpriced and nearly unsalable, and that Quixtar mainly benefits the DeVos and VanAndel families in Michigan who own the company.

Harteis and 16 plaintiffs in the lawsuit, all large Quixtar distributors with several "downline" distributors working off them, were terminated Friday by the firm, a day after the suit was filed in Los Angeles.

Rick Abraham, a lawyer from Columbus, Ohio, who represents Harteis, said he got Quixtar to withdraw Harteis' termination notice after persuading the company the inclusion in the lawsuit had been a mistake.

"We are fielding telephone calls. There is all sorts of confusion in the field," Abraham said, referring to the downline distributors. "This could lead to substantial damage to the Harteises," he said.

He said Harteis was not pressured by Alticor Inc., the parent company of Amway and Quixtar, to withdraw from the lawsuit.

Abraham said he has long represented Amway and Quixtar distributors.

D.J. Poyfair of Denver, lead counsel for the plaintiffs, could not be reached for comment yesterday.

The lawsuit was filed by Quixtar distributors who represent about 40 percent of Quixtar's $1.1 billion in annual sales, according to the Grand Rapids Press in Michigan.

No damages are sought in the lawsuit. Instead, it seeks a federal court order to void noncompete and nonsolicitation agreements signed by the Quixtar distributors so they can still work in multilevel marketing for similar firms that sell health, beauty and household cleaning products.

Alticor did not respond to a request for comment. On its corporate blog, the company has replied to the lawsuit in language far more venomous than is typical in public statements about corporate litigation.

It accuses the lead plaintiff, who was not Harteis, of running his business in a way that "was a disgrace to every person who's ever tried to build a Quixtar or Amway business the right way."

Alticor contends on its blog that the lead plaintiff "handed us a trumped-up, trash-talking lawsuit on his way out the door."

Home

Search