Earlier this week we reported
Isagenix had filed a raiding lawsuit against Modere
.
We didn’t have specific details at the time, with only an Isagenix affiliate communication to go on.
Since then a reader kindly informed me that Isagenix have
made a copy of the complaint available on their website
.
Having gone through it, it seems Modere’s recruitment of Isagenix affiliates is the usual backroom deals story. Full details are provided below.
In their lawsuit Isagenix refers to Modere as a ‘
troubled company unable and unwilling to compete using fair and legal means
‘.
In addition to Modere, individual defendants named in Isagenix lawsuit include Mark and Linda Klassen, and Brett Davis and Samantha Gascoigne.
Isagenix claims the husband and wife teams are
‘unscrupulous individuals willing to violate their legal obligations for extra money’
.
Isagenix believes Modere’s plan to target the company may have been hatched in May 2018.
The so-called “plan” started with a representative contacting Isagenix about possibly acquiring Modere.
Isagenix declined the offer, citing “instability of Modere’s ownership and brand”.
Sometime after Isagenix declined Modere’s offer, Modere and/or its principal owner, a private equity firm, began a smear campaign to spread false statements about Isagenix to its Associates, with the intent that those Associates would leave Isagenix and join Modere.
Alleged recruitment of Isagenix into Modere began in mid 2019.
An unnamed Modere executive is believed to have visited the home of Heidi and Lal MacAllan, who at the time Isagenix claims were two of their “most prominent Australian Associates (affiliates)”.
The executive offered the MacAllans extra compensation outside the compensation normally paid to Modere’s independent salesforce in an effort to incentivize them to join’.
The MacAllans (right) declined the offer, and eventually Isagenix corporate was made aware of the visit.
Heidi Macallan expressed that, if she were to leave Isagenix, it would not be to join Modere’.
Sometime earlier this year, the MacAllans did in fact leave Isagenix to join Modere.
By that time recruitment of Isagenix affiliates was in full swing, starting with Todd and Delialah Lotich in September 2019.
Whether the MacAllan’s backroom deal offer was still in play when they joined Modere is unknown.
Shortly after they signed up though, six other
prominent Australian Associates (three couples) resigned from Isagenix in a coordinated fashion, with resignation emails that were all submitted on the same day and that contained overlapping points.
Isagenix identifies the Australian Associates that left as Brett Davis and Samantha Gascoigne (defendants in the suit), and Matt and Karina Jolly.
They mention three couples left however the third doesn’t appear to be named.
In the US Modere Program Manager Reagen Cox sent Isagenix affiliate Mark Klassan (right) a contract in January.
The contract is reported to have guaranteed Klassen a $1
🤖 Quick Answer
What is the Isagenix v. Modere lawsuit about?Isagenix filed a lawsuit against Modere alleging unfair recruitment practices of its affiliates through unauthorized negotiations. The complaint names Modere executives Mark and Linda Klassen, Brett Davis, and Samantha Gascoigne as defendants, accusing them of unscrupulous conduct and competing through illegal means rather than fair business practices.
Who are the named defendants in the Isagenix lawsuit?
The defendants include Modere as a company and four individual executives: Mark Klassen, Linda Klassen, Brett Davis, and Samantha Gascoigne. Isagenix characterizes the husband-and-wife teams as unscrupulous individuals engaged in improper recruitment activities targeting Isagenix affiliates.
What evidence supports Isagenix's claims?
Isagenix made a copy of the
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