Friday, August 24, 2007

[MLM Survivors Club] Re: Some quotes from the Team

Thanks for posting those links! The "supporters" who have been at the
courthouse every day are certainly a dedicated bunch - so far, they've
endured HUGE rainstorms and stifling heat and humidity, especially
considering they're all wearing their "dark suits and red ties"....LOL!!

And then they lose ;-)

Deb

--- In mlmsurvivorsclub@yahoogroups.com, "captncrunch_99"
<captncrunch1999@...> wrote:
>
> As was noted above, the Grand Rapids Press is covering this case.
> Interesting articles:
> *************************************************
> link here:
> http://blog.mlive.com/grpress/2007/08/jude_sides_with_quixtar_in_all.
> html
>
> content of above link here: (note last paragraph)
>
> Judge sides with Quixtar in all three cases
>
> Posted by The Grand Rapids Press August 24, 2007 11:22AM
> Categories: Breaking News
>
> A Kent County judge has sided with Quixtar in three cases that
> tested the Ada-based direct marketer's ability to enforce non-
> compete clauses, non-disclosure agreements and control over
> information its distributors can sell and utilize.
>
> Circuit Judge Paul Sullivan this morning issued a preliminary
> injunction against several of Quixtar's former Independent Business
> Owners, preventing them from using their former Quixtar networks for
> any business-related purpose.
>
> Quixtar is the name Alticor Inc. uses for its American direct sales
> unit, known elsewhere as Amway.
>
> The injunction says the former high-level distributors must abide by
> confidentiality and non-compete clauses until their disagreements
> with the company can be arbitrated.
>
> Sullivan also sided with the Quixtar Independent Business Owners
> Association International, granting an injunction against six former
> IBOs, including prominent distributors Orrin Woodward, Chris Brady
> and Billy Florence.
>
> The order enforces confidentiality agreements that prevent them from
> disclosing events that took place at association functions. The
> organization sought the injunction because the former IBOs were
> using the Internet and legal filings to distribute their versions of
> confidential meetings.
>
> In a third case, one that could have wide ramifications for
> thousands of Quixtar IBOs, Sullivan said Quixtar has the right to
> forbid them from disseminating business sales materials created by
> Brady's and Woodward's TEAM organization. Sales of such materials
> are represent a significant portion of business for many IBOs.
>
> *******************************************
> link here:
> http://www.mlive.com/grandrapids/stories/index.ssf?/base/news-
> 37/1187877775286550.xml&coll=6#continue
>
> Content of link here:
>
> Quixtar battle lines drawn
> Thursday, August 23, 2007
> By Chris Knape and Shandra Martinez
> The Grand Rapids Press
> GRAND RAPIDS -- In the war over the future of Amway Corp., Kent
> County Circuit Judge Paul Sullivan's courtroom is where the first
> battle will be decided.
>
> Arguments were expected to continue this morning in lawsuits filed
> to keep several former distributors for Quixtar, the name for
> Alticor Inc.'s Amway business in the United States, from disclosing
> confidential information as part of what the company and a
> distributors' association claim is a smear campaign.
> Ada Township-based Alticor and the Independent Business Owners
> International Association filed suit to prevent former high-profile
> distributors Orrin Woodward and Chris Brady, among others, from
> releasing information they say could cause irreparable harm to
> Quixtar and other distributors, known as IBOs.
> Sullivan heard arguments for more than three hours Wednesday
> afternoon.
>
> The cases spawned from Quixtar's dismissal of at least 15 IBOs after
> the company said they refused to fall in line with its business
> rules.
>
> The IBOs then filed suit in California, alleging Quixtar's
> noncompete clauses, part of those rules, were invalid as an illegal
> pyramid scheme.
>
> The lawsuit claims Quixtar relies almost solely on internal
> consumption of its products by its IBOs.
> The suit alleges a pyramid scheme because, in order to make money,
> IBOs must continually recruit people for their "downline," for which
> higher level IBOs receive commission-like payments.
> Wearing stickers proclaiming "Burned by QUIXTAR!," distributors
> supporting Woodward, Brady and others showed they could take the
> heat, protesting for hours in 90-degree temperatures.
>
> Rallying at the courthouse
>
> The predominantly male crowd of hundreds of distributors, mostly in
> dark suits with red ties, lined the sidewalk in front of the Kent
> County Courthouse, creating a gauntlet of support for the
> defendants.
>
> The crux of Quixtar's arguments against Woodward, Brady and their
> organization called TEAM (which stands for Together Everyone
> Achieves More) focused on noncompete agreements all IBOs must sign.
> Quixtar attorneys said the agreement prevents the former IBOs from
> tapping their networks of IBOs for other ventures or to sell
> motivational products.
>
> Stephen Turner, the Independent Business Owners International
> Association's attorney, argued Woodward, Brady and four other high-
> level IBOs had breached pledges and contracts in which they swore
> not to divulge what happens at association board meetings. He is
> seeking an injunction to prevent further dissemination of
> confidential information.
>
> The defense attorneys argued the California case would decide
> whether Quixtar's confidentiality agreements are valid. They claimed
> there was not enough evidence to show the company would be
> irreparably harmed without the temporary injunctions they are
> requesting.
>
> In the IBOIA case, defense attorney John Anding argued the group was
> trying to squelch free speech and the information the association
> called confidential was already in the public domain.
> Arguments were slated to resume at 8:30 this morning. Both sides
> declined comment.
>
> Even the crowd of supportive IBOs, a group not known for being shy
> about talking, was coached to smile but not to applaud or cheer --
> or speak to the news media.
>
> After arrival of the defendants, most of the crowd followed into the
> building, creating a logjam. About 70 people filed into the
> courtroom and another 200 filled a jury-assignment room, where the
> court hearing was simulcast.
> Several people walked around with walkie-talkies, coordinating the
> show of support. The supporters drove in from as far as Detroit and
> northern Michigan.
>
> Distributors show support
>
> The legal battle isn't about money for the former high-level
> distributors but about looking out for people on their team, said
> distributors standing across from the courthouse.
> "We are here because we believe in them," said one distributor from
> Rockford, who declined to give his name.
> A mother of five who came with her children in tow, said her loyalty
> ran deep for Woodward, of Grand Blanc, a co-founder of TEAM.
> Quixtar "has changed our whole family's life. I know God sent this
> person Orrin to us through this business," she said.
>

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