Xyngular Corporation recently sued Innutra LLC, a company that appears to be founded by a number of former Xyngers. You may recognize Xyngular as the company for which serial scammer Jennifer McKinney shills. Both companies are multi-level marketing companies that use “nutritional supplements” as the front for their recruiting schemes.
Xyngular is upset because the people who started Innutra (James Ayres, Cindy Hansen, Glen Oliver, Cecily Karst, and Chris Hummell) allegedly used distributor lists and other proprietary information to get people to join Innutra (in violation of agreements made with Xyngular).
More specifically, Jim Ayres had a contract with Xyngular that provided him with $3,500 per month (later $7,000 per month) plus 5% of all Core4 products (Flush, Accelerate, Cheat, Lean) manufactured for Xyng. The contract allegedly also gave Xyngular exclusive rights to use his face and name to promote their products. And Ayres agreed not to duplicate “Core4” product formulations for any other company. He attempted to terminate his contract with Xyngular as of April 1, 2013.
It is alleged that Innutra “copied” the Core4 products, and promoted them as “new and improved” over Xyngular’s products. It is further alleged that the people involved in Innutra tried to “recruit away” Xyngular distributors using distributor lists. A rather odd allegation is that Innutra signed up Xyngular distributors to become Innutra distributors without their knowledge or consent.
Another interesting twist is that Xyngular complains about Ayres use of his Facebook page to recruit distributors. They say he “friended” Xyngular distributors while he was a Xyngbat, and he is using those connections to promote Innutra.
Xyngular says that Innutra has been saying bad things about Xyng and making false claims about Innutra’s products:
- Innutra products are FDA-approved;
- Ayres is the creator of the formulations for Xyngular’s products;
- Innutra products were the cause of weight loss in some testimonial “before-and-after” photos;
- Xyngular’s leading distributors are all switching over to Innutra;
- Xyngular’s executive group, and in particular its President Marc Walker, is threatened with removal;
- Xyngular’s ongoing lawsuit with a former executive/distributor will result in negative changes at Xyngular, including a change in the compensation plan to the detriment of the distributors;
- There is “dirt” on the Xyngular founders that will soon be made public;
- Xyngular’s products are toxic; and
- All Xyngular products contain gluten, soy and GMO ingredients.
The company is asking for an injunction prohibiting Innutra from using Xyngular distributor lists or making false claims.
Jim Ayres is no stranger to litigation and shady dealings. And of course, one must wonder how he gets around the injunction which permanently prohibits him from representing that any product similar to FiberThin “…causes substantial weight loss through blocking the absorption of fat or calories.”
MLM owners, executives, and distributors do this kind of thing all the time. They say their company is the greatest in the world. Until they think they can make more money by starting a new company. Then they jump ship, try to lure over big distributors from the old company, and all hell breaks loose.
Those who run multi-level marketing companies are thieves. They sell false hope to distributors who put hundreds or thousands of dollars into these schemes, and have almost no chance of getting their money back. The owners profit handsomely from these schemes, which makes them thieves.
This lawsuit proves that there is no honor among thieves. Rip each other apart. Your lawyers will be happy to bill you for it.