A medical device maker has taken an MLM company to court for refusing to stop selling its products after their business deal fell apart.

Avacen, which manufactures FDA-cleared heat therapy devices, sued NuLife Ventures on July 29th over what it calls blatant violations of a 2019 reseller agreement. NuLife markets hydrogen water devices and other products through a multi-level marketing structure.

The dispute centers on broken purchase commitments. Under their January 2019 contract, NuLife agreed to buy either 1500 Avacen devices or spend $1.5 million in the first six months. The second half-year required either 4500 units or $4.5 million in purchases. By June 1st, 2020—one year into the deal—NuLife had bought only about 1938 products total, falling short on both targets.

Avacen invoked a termination clause. The company gave NuLife 45 days to fix the breach and explicitly prohibited continued marketing and sales of Avacen's products. NuLife's response came fast: two days later, on June 2nd, the company told Avacen it wouldn't buy anything more.

That should have ended it. It didn't.

Avacen alleges NuLife continued plastering the Avacen name and device images across its website and marketing materials. The company even kept calling itself an "Avacen Global Partner." Avacen says this misled customers into believing the medical device maker still endorsed NuLife's operations and practices.

On July 17th, Avacen sent a cease-and-desist letter. When NuLife ignored it, Avacen filed suit and requested a Temporary Restraining Order to stop the unauthorized marketing immediately.

NuLife fought back. In its August 15th response, the company challenged the court's authority to hear the case, arguing it lacks personal jurisdiction. NuLife also claimed that arbitration proceedings should take precedence—the company had filed its own lawsuit against Avacen in Tennessee State Court back in June 2020, a detail that complicates the picture considerably.

NuLife labeled Avacen's claims "misrepresentations of fact," though the company provided no specifics.

As of publication, NuLife Ventures continues to advertise Avacen's products on its website, effectively ignoring both the termination clause and Avacen's legal threats. The case hinges on whether a California court can force an out-of-state company to stop, and whether NuLife's Tennessee filing actually changes the legal landscape.

What's clear is that the relationship between these two companies is dead, and Avacen isn't waiting for apologies.

🤖 Quick Answer

What is the legal dispute between Avacen and NuLife Ventures?
Avacen, an FDA-cleared heat therapy device manufacturer, sued NuLife Ventures in July for breaching a 2019 reseller agreement. NuLife failed to meet contractual purchase commitments, buying only 1,938 devices instead of required minimums of 1,500 units or $1.5 million in the first six months, and continued selling Avacen products after the partnership ended.

What were the original terms of the business agreement between the two companies?
The January 2019 reseller contract stipulated that NuLife Ventures purchase either 1,500 Avacen devices or spend $1.5 million during the first six months, with the second half requiring 4,500 units or $4.5 million in purchases, establishing minimum performance thresholds

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