Quixtar, sellers file deuling lawsuits

By PATRICK CENTER
www.woodtv.com

GRAND RAPIDS - A class action lawsuit filed last week in California made its way to the Kent County courthouse, and involves one of Alticor's companies.

Eight Michigan plaintiffs named in the lawsuit requested a temporary restraining order against Quixtar, the e-commerce arm of Alticor. It's a dispute between Quixtar and its independent business owners (IBOs.)

At the Kent County Courthouse, hundreds of people in dark suits and red ties stood in silent solidarity -- but with whom they were in solidarity is undetermined. None of them would speak on- or off-camera with 24 Hour News 8.

Using a multi-level marketing plan, IBOs purchase and sell Quixtar wholesale products and turn a profit at a retail price. They recruit and enlist new IBOs for "down-the-line sales."

The restraining order stems from a class action lawsuit where Quixtar requested a restraining order against 15 IBOs who were operating a training, leadership and motivational business independent of Quixtar. Those IBOs called their business "Team."

Two more IBO training businesses, "Legacy" and "5-K" are also named in the class action suit. They claim Quixtar knowingly operates an illegal recruiting pyramid, and said Quixtar has a campaign in place to damage and destroy all IBOs associated with Team.

A message sent from Quixtar to Team IBOs said, "What Team has taught you regarding business building may put you at legal and regulatory risk - but we can help."

The issue at hand is how damaging are those statements to local IBOs using the Team model trying to grow their business. Quixtar last week said it terminated 15 IBOs on the grounds of improper training

The judge made no ruling on the requested restraining order. Another hearing with all parties concerned is scheduled for Wednesday.

24 Hour News 8 will continue to follow this story.

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