Yesterday we reported on Dennis Windsor, co-founder of Nerium,
suing the company for $22 million dollars
.
Today we cover another lawsuit filed against Nerium, this time by their product supplier.
Nerium Biotechnology is the parent company of Nerium Skincare.
Nerium Skincare is
a corporation organized and existing under the laws of the state of Texas and is a member of Nerium International, LLC.
Specifically, Nerium Skincare have a 30% ownership stake in Nerium the MLM company (Nerium International, LLC).
The other 70% is owned by Nerium co-founder Jeff Olson’s company, JO Products, LLC.
So the story goes,
Several years before the formation of the Company, Nerium Biotechnology, Inc. (“Biotech”), Nerium SkinCare’s parent, was engaged in researching, developing and testing products using extracts of the Nerium oleander plant that appear to have unique health benefits.
During that process, Biotech discovered that the unique properties of the Nerium oleander plant provided remarkable age-defying results when applied to the skin.
Biotech patented an extraction process to create a Nerium oleander extract product called NAE-8.
Biotech created Nerium SkinCare to develop, formulate and manufacture natural skincare products, some of which would contain the NAE-8 extract.
Having developed a first-of-its-kind product, with a patented extraction process that yields a beneficial extract, Nerium SkinCare considered marketing alternatives and was introduced to Jeff Olson (“Olson”).
Nerium Skincare and Olson went on to launch Nerium International, ‘
to
market and sell Nerium SkinCare products
‘.
Nerium SkinCare develops and produces the Product Line and Nerium International sells and distributes the Product Line.
Part of the Nerium agreement is a Perpetual Distribution and Licensing Agreement (DLA),
to delineate the exclusive and non-exclusive rights of Nerium International to market the Product Line and to grant certain intellectual property rights to Nerium International “to the extent reasonably necessary for the marketing, distribution and sale of the Product Line.”
This DLA is a source of contention between Nerium Skincare and Nerium International, with Nerium Skincare claiming Nerium International has
failed and refused to enter into the DLA which, among other things, has frustrated the purpose of the Company Agreement and caused irreconcilable damage to the parties’ relationship.
Basically Nerium International are supposed to exclusively market Nerium Skincare products. Which according to Nerium Skincare, they haven’t.
Around April 2014, Nerium debuted an Optimera line of products in Canada.
Without Nerium SkinCare’s consent Nerium International began selling imitation products overseas that were not manufactured by Nerium SkinCare and do not contain the proprietary oleander extract NAE-8.
Nerium International refers to the imitation products as the “Optimera Line.”
Nerium International promotes the Optimera Line of skincare produc
🤖 Quick Answer
What legal actions have been filed against Nerium?Nerium faces multiple lawsuits, including one from co-founder Dennis Windsor seeking $22 million and another from its product supplier. These legal disputes highlight internal conflicts within the company's corporate structure involving Nerium International, LLC and its parent company Nerium Biotechnology.
What is the ownership structure of Nerium International?
Nerium Skincare holds a 30% ownership stake in Nerium International, LLC, while JO Products, LLC, owned by co-founder Jeff Olson, controls the remaining 70% of the MLM company's equity.
What is the relationship between Nerium Biotechnology and Nerium Skincare?
Nerium Biotechnology serves as the parent company of Nerium Skincare. Nerium Skincare is a Texas-incorporated corporation that maintains membership in Ne
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