Xyngular v Innutra Lawsuit

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.

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25 Comments

  • One Xyngular Sensation says:
    2 August 2013

    Like times 25555555555555. Let them all rip themselves apart scamming scammers that scam.

  • Nikki says:
    3 August 2013

    I just learned this evening that someone who worked at the same advertising agency as me (Cincinnati) back in 2002 has apparently given up her public relations career to become a lowly diet pill schiller for Innutra/Visionaries Worldwide (previously Xyngular). I was absolutely floored when a former colleague shared this with me. Now, granted, when I worked for the agency, I just remember her as being very “green” (she was either an intern or assistant for someone) and I didn’t really know her; just sat in creative meetings and such with her from time to time. Her name is Julie Ensign Smith, and there are pictures of her on Facebook posing with the Ayers fella. I recall her being a bit of a wallflower, but she seemed to have promise. I’m just shocked at her fall (because really, what else do you call that?!). Who spends years in college to have such a promising career only to end up selling diet pills? Yuck. So disappointing all around.

  • Carol says:
    4 August 2013

    Glen Oliver was COO, and not a distributor, so would he be bound by the restrictions on distributors’ use of distributor lists and proprietary information? I would think that as an employee he had his own non-compete, non-disclosure agreement.

  • Carol says:
    4 August 2013

    Tracy, if my last comment went through, you can delete it – I was asking about a confidentiality agreement between Xyng and Glen, and now see it referenced in the complaint.

  • Jenny says:
    7 August 2013

    Rudy Revak & Marc Schenkel cofounded Xyngular and are suing each other. It is public record & the allegations are wowza

  • Julie says:
    8 August 2013

    NIKKI… Wow!! Let me ask you this… Someone who makes an impact on changing lives… DAILY… Taking a “fall?”… DIET PILL PUSHER?? I’m assuming you must love your 9-5 job and have no idea what the hell you are talking Bout…. Just assuming of course… I happen to know that what Julie is doing is far more than taking a “fall”… Have you nothi g better to do with your time than slam an opportunity you know NOTHING about??? Personally, I have 2 degrees… Spent years working decent jobs… & hated them… There is nothing more rewarding than time freedom.. Again… I’m just “assuming” u love your job & you must be impacting many lives while doing so…

  • Tracy Coenen says:
    9 August 2013

    Julie – You are only changing lives in that you are conning people into an “opportunity” in which they are almost guaranteed to lose money. Yes, leaving your real job at which you had an honest living with actual income and benefits IS falling. I’m sorry you don’t see it that way, but I hope you come to your senses before you’re ruined financially.

  • Patricia says:
    11 August 2013

    Tracy I’m guessing you live paycheck to paycheck and don’t know much about business. I hope you eventually come to your senses or spend the rest of your life working for someone that did.

  • Tracy Coenen says:
    12 August 2013

    LOL Patricia. I know that reading comprehension is not a skill that most MLMers have, but if you would try…. you would see that I’ve been a very successful small business owner for almost 14 years. Sorry to burst your bubble, but I know lots about business and have used that knowledge to create a REAL business with lots of profits. (As opposed to the fake businesses that MLMs push onto unsuspecting victims.) :)

  • Former Xyngular Pusher says:
    23 August 2013

    EX-XYNGULAR FOLKS – MUST READ!!! So there has been a lot of talk about the unscrupulous behavior of Xyngular, and I’m here to validate those suspicions. For months several distributors were getting auto-ship orders they never made. Not as in ‘accidental’ auto-ships they were unaware of, but auto-shipments that were drastically changed and then charged for by Xyngular. Recent proven instances were anything from 4 boxes of Xyng to 3 Ignite Plus kits. (No joke – over $1,000 of product that was never ordered!) I personally called Xyngular regarding issues I was having. I was sent multiple shipments of (4) boxes of Xyng I never ordered – and went as far as to call Corporate the first time yelling and screaming until they admitted it was THEIR mistake, due to a, “system upgrade error”. I was treated like scum, being told that I authorized Xyngular to charge my card by becoming a Distributor. It was a round and round of excuses for this error, including being sent a text message by Ashley Richards saying I need to, “Just humor her” and change my login/password to my account because my uplines could have been hacking my account by ordering products to boost their sales. It gets better…. Low and behold Xyngular wasn’t even charging MY credit card. They had stored someone else’s credit card in my account. When I contacted my upline to get more information, she told me whose card it was. I contacted that person, who then called Xyngular and they lied, saying her card was never charged. Sixty days later, and there’s over $340 in unauthorized charges to her card. In an effort to keep girls with Xyngular, they did a quick “rah rah” session out at Sundance, taking girls with large teams who had JUST earned the right to a Sundance trip, while other girls who achieved that goal had been waiting around for months – and even up to a year! Xyngular’s amount of complaints is mounting, on several Rip-Off websites and the BBB website. Many people have been the victims of fraud. There is proof of requests to cancel auto-ships that still come, and Xyngular tries to tell these people they have to pay a 10% return fee and eat return shipping costs, for THEIR error. Kind of ironic, seeing as Xyngular lives and dies by a “MONEY BACK GUARANTEE” for the first 30 days. Why do Distributors have to pay a fee to return products if there’s a money back guarantee? Perhaps it’s because of the rumor that Xyngular’s sales were down by $700K in June, (which magically dipped to 500K after some big “push”) and 800K in July? Now granted, this is only information obtained from old “higher ups” of Xyngular, but it all makes a lot of sense, doesn’t it? Xyngular is blowing through employees at their small corporate office. Again, it’s just speculation, but is it because some people can’t be paid off with hush money? Is it because of the increased amount of calls by dissatisfied customers? Can you imagine being on vacation, and your credit card gets charged for $1,000 worth of products you didn’t order – rendering you stranded on vacation? Yes, it’s happened. And in writing, Xyngular admits their mistake(s), yet still is holding Distributors financially liable for their mistakes. Today Tiffany from Xyngular had the nerve to tell my old Upline, “Well I guess you learned your lesson about using your credit card for auto-ship. You should have just bought a prepaid Walmart card.” WOW! So this is the words straight out of the mouths of the Xyngular reps! Makes you feel all warm and fuzzy, doesn’t it? Help join us in the efforts to keep consumers safe from the fraudulent acts of this company! Call the main office and ask them to explain what’s going on. DEMAND ANSWERS! Then do us a favor and put your feedback below. There are a LOT of people that deserve to be made whole!

  • Kerrie says:
    27 August 2013

    None of what I read surprises me one bit.

    Sounds like Jennifer McKinney & Xyngular are made for each other…both scamming, lying, cheating would be if they could be, scum.

  • Imogene Josselyn says:
    27 August 2013

    Julie & Patricia I’m guessing you’re realizing that the multi level “business” you have is starting to shimmy and shake and will land you on your ass and your scam well will run dry. Try a respectable career and then you won’t have to scour the interwebs worrying about what is being said about the scam you call a business.

  • Harry says:
    14 September 2013

    Are MLM companies frauds? Yes, and you lay out the case for this in an understandable way. Do regulators see it that way? No, at least not yet. Are MLM stocks shorts? Hard to say. BTH is being squeezed right now, and HLF keeps going higher with the press getting worse. Will the FTC or some other regulatory body ever step in? Unknown.

  • Tracy Coenen says:
    14 September 2013

    My money is on the federal government never pursuing MLMs in a meaningful way. HLF stock will continue to do well because the owners (both company insiders and other shareholders) know that MLM is a cash cow FOR THEM. (Almost all distributors will lose money, but who cares as long as there is a steady supply of consumers who believe the hype and are willing to take a chance on the unattainable dream.) The pyramid can perpetuate itself indefinitely.

  • Dawn Dinn says:
    16 September 2013

    I was just charged $312.12 for products I didn’t order. They said it was on the website and that I signed up for automatic ship but NO WHERE did I see this. I’m very careful about that because I got caught in a trap like this before. I have to pay to return my products and lose restocking fees on items I didn’t even order. I did lose weight on this product initially but you have to keep taking it. So just eat right and EXERCISE! You can lose weight without it!

  • Freddy says:
    23 September 2013

    Good point Patricia. Tracey don’t be so negative

  • Freddy says:
    23 September 2013

    Kerrie don’t be a hater

  • Freddy says:
    23 September 2013

    Tracey the industry is changing lives do your research .stop being so negative . Look into how it’s changing lives in the positive ill give u hundreds of examples if u can open up your mind long enough .

  • Freddy says:
    23 September 2013

    Tracey the industry is changing lives do your research .stop being so negative . Look into how it’s changing lives in the positive ill give u hundreds of examples if u can open up your mind long enough .

  • JustAnotherJen says:
    24 September 2013

    Oh Freddy, you are right. This “business” is changing lives in the positive…..for the top executives. For meager distributors and customers it is costing hundreds of thousands on dollars in debt. Sucking people in at the premise of “easy” weight loss and getting them to unwillingly sign up for autoship. Then when they attempt to go off the product, any weight loss comes back and they struggle even harder to get off of autoship.

    Trust me when I say Tracy (no “e” master researcher) has done more than her fair share of research on MLM’s.

  • GMAN says:
    2 October 2013

    I got sucked into MLM years ago. One thing I realized is only the top folks saw thier dreams fulfilled. I noticed how these top earners moved from copany to company taking their teams with them. This was a red flag for me and I realized that though MLM can help folks make money it is the scammers aand smooth talkers that make all the money. They talk about their concern for people and have these tear jerking stories, funnny thig is when these folks open new companies thier stories are adjusted to meet the needs.

    The products are good, but priced so far above what they are really worth.
    I found all these products on Swanson Vitamins website foe a fourth of the cost MLM’s charge. I am glad I found this site and laud what Tracy is doing. There are some MLM’s that seem legit but that is about 1% of the business.

    One thing I did learn during the time I was in MLM was how to make websites and do videos along with search engine optimization. I realized these areas were legit and have found working on this area very enjoyable so MLM did provide me with skills I otherwise wouldn’t have been able to learn. My advice though is stay away from MLM and find something that can make you a far more stable income.

  • pete says:
    6 October 2013

    do your self a favor and run like hell from this gang of thieves , yes thieves they will steal and rob you…. they are all criminals!!!

  • JoJo says:
    1 December 2013

    As a wary consumer, I question everything. I like to think myself knowledgeable when it comes to determining if an offer, whatever it may be, is a scam or truth.

    This organization came to my attention when a close friend started taking it, and saw results. So, of course, I looked into it, and found some disturbing things. First and foremost, I visited their website and found it well designed, except for one glaring thing… it appears that marketing and sales are more important than their product!

    Only 1/3 of their site is dedicated to what they sell, and to me, as a consumer, that fact is extremely important. Then the remaining 2/3 is strictly about marketing and sales. Why would a company that sells such a great product, not elaborate more about what it is, what is in it and why it works?

    As a consumer and a person who has food-based allergies, I need to know exactly what is in each product and/or pill, AND in mundane language – not just scientific terms.

    I became very suspect about their business model, after visiting their website, I say this coming from owning my own business for 27+ years, and having a fair idea of what is needed to sustain a healthy cash-flow. I hate bashing other entrepreneurs, but this business profile will not sustain itself in the long run. It’s all bells & whistles up front, but this just hides the truth. Don’t be a fool, be smart.

  • Tom Glavins says:
    8 February 2014

    I can only imagine that all of your employees that are employed by you at your so called REAL business make the same as you! You must be a thief if you are a successful business owner, because as you stated, “The owners profit handsomely from these schemes, which makes them thieves.”

    You, my friend, are guilty of the exact same thing you are claiming these people are doing, and YOU are one of those people that are incapable of looking into an opportunity without judging, and seeing it for the entire picture. I promise you this: The people in both of these companies have helped WAY more people than you do with your small business or this lame blog!

  • Tracy Coenen says:
    8 February 2014

    Tom – I’m sorry I wasn’t clearer. The difference is that in real businesses, the employees actually get paid. In MLM, the workers PUT MONEY IN, rather than getting paid. In MLM, the owners make money only because the people in the pyramid are giving them money. Again, in contrast, in real business, the employees don’t pay in… they GET PAID.

    So here’s the entire picture you wanted me to see: More than 99% of people involved in MLMs will lose money. They will never profit a dime… they will only put hundreds or thousands of dollars into the venture with no chance of ever turning a profit.

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