Quixstar And Distributors Return To Courtroom

By Staff
WXMI.com
August 22, 2007

GRAND RAPIDS Arguments continue in a Kent County court Thursday as Quixtar executives try to keep company information confidential.

The judge heard three hours of oral arguments again Wednesday from both Quixtar attorneys and the attorneys representing a group of distributors. Those distributors are asking for a temporary restraining order to stop Quixtar from firing them and anyone aligned with them.

It's part of a larger battle that's playing out in federal court between some prominent IBO's accused of violating Quixtar rules by using un-authorized training materials and teachings.

Quixtar says it leaves the company at risk of government legal action. The distributors say they're doing nothing wrong and want out of their non-compete contracts.

"What they're clearly doing your honor is creating an infrastructure. An infrastructure of Quixtar IBOS ready made for them to run, once they get the red light to compete," Ed Bardelli, Quixtar Attorney.

"It doesn't compete with Quixtar, in fact, it benefits Quixtar because it trains other IBOS, all it is is a training mechanism, said William Sankbeil, attorney for distributors.

Quixtar agreed to not take any personnel action until the judge makes a decision possibly on Monday.

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