Lifevantage (LV) announced that, at the unanimous recommendation of its Board of Directors, it has terminated for cause its relationship with Jason Domingo and Ovation Marketing Group, Inc., one of the Company’s lead distributors. The Company also announced that it has filed suit against Mr. Domingo and Ovation in Federal Court in the State of Utah for breach of contract and misappropriation of trade secrets. See typical market report.
The detail (see link below) shows that LV made $10.9m in 2010 and $208m in 2013 – this is despite the investigative activity into Protandim, LV’s main product, by LazyManAndMoney and others…! Distributors were paid $91m from which $2.6m went to Domingo. They say he was the lead distributor.
The Detail in the Lifevantage Case
The case details are on PACER – summarised here:
2:13-cv-01037-DB Lifevantage v. Domingo et al
Dee Benson, presiding
Date filed: 11/19/2013
Date of last filing: 11/19/2013
Assigned to: Judge Dee Benson
Cause: 28:1332 Diversity-Breach of Contract
Court Filings of Lifevantage v Jason Domingo
You can view the court documents (19 pages) on the attached file:
Jason Domingo,President, Ovation Marketing Group, Inc.
Domingo has been in business for many years. This letter of his to the FTC is dated May 28, 2006 and he states he’s been in network marketing for 14 years, meaning he started back in 1992. Chillingly, he quotes a Dr Charles King that by 2016 one in two Americans will be involved in network marketing. Thankfully, we don’t appear to be treading that path.
The Court Case
The letter of his makes good reading, especially with regard to the free market and in comparison to the Lifevantage court case…. In this, they claim he:
- Has been laying the groundwork for setting up a competitive business
- Disparaged the company
- Is setting up a competitive business
- Used his disposal of 90% of his stock as proof of these claims
- Sent an email to Randy Haag disparaging the company where he said “there is no statement too strong that speaks to the malfeasance of this management team. Greed and ego has gripped my (sic) beautiful company by the throat.” – Stirring stuff indeed!
- If Domingo had worked properly, they’d have paid out tens of millions more to distributors.
In total there are three main actions, divided into a myriad of clauses.
- They want a 12 man jury public trial.
- They want all costs.
- They want $775,000
Domingo used the word malfeasance to describe the LV management team. I had to double-check the meaning. It means:
The commission of an act that is unequivocally illegal or completely wrongful.
In detail, it means:
Intentionally doing something either legally or morally wrong which one had no right to do. It always involves dishonesty, illegality, or knowingly exceeding authority for improper reasons. Malfeasance is distinguished from “misfeasance,” which is committing a wrong or error by mistake, negligence or inadvertence, but not by intentional wrongdoing. Example: a city manager putting his indigent cousin on the city payroll at a wage the manager knows is above that allowed and/or letting him file false time cards is malfeasance; putting his able cousin on the payroll which, unknown to him, is a violation of an anti-nepotism statute is misfeasance. This distinction can apply to corporate officers, public officials, trustees, and others cloaked with responsibility.
Well. Most of what I have seen about LV fits into that. It’ll be interesting to see how this case pans out. I suspect it’ll not come to court.