Pruvit sues Michael Rutherford & Keisha O'Neal
A ketone supplement company is taking two of its former distributors back to court, accusing them of poaching recruits after signing settlement deals just months earlier.
Pruvit filed suit against Michael Rutherford and Keisha O'Neal in Texas federal court, claiming they've violated non-solicitation agreements by recruiting Pruvit distributors to a competing business. The move marks an escalation in a dispute that started in May 2023 when Rutherford sued Pruvit over suspended commissions, alleging CEO Brian Underwood bullied him.
That original battle ended in settlement agreements. Both Rutherford and O'Neal agreed to stop promoting non-Pruvit products and agreed not to solicit Pruvit's distributors, customers, or employees. The settlement also imposed specific requirements on how they managed their social media pages.
According to Pruvit's complaint, filed in April 2024, that's exactly what they're not doing. The company says Rutherford and O'Neal have continued pitching a separate business venture both online and offline. Pruvit points to their social media pages as evidence, noting they refused to unfriend or unfollow Pruvit distributors despite contractual obligations to do so.
The settlement included teeth. Rutherford faces liquidated damages of $75,000 per violation. O'Neal faces $25,000 per violation. Pruvit says it gave them a chance to fix the problem. They didn't. Now the company wants money, plus attorney's fees.
Rutherford and O'Neal fired back on April 17th with a motion to dismiss. Their argument: Pruvit's complaint is too vague. It doesn't clearly identify which specific contract language was breached or explain how the breach happened. They also claim Pruvit never actually performed its side of the settlement agreement.
In May 2024, Pruvit filed an amended complaint, providing the additional specificity the defendants demanded.
The case remains pending as both sides gear up for what could be a costly fight over how a settlement agreement should actually be enforced.
🤖 Quick Answer
What is the legal dispute between Pruvit and Michael Rutherford & Keisha O'Neal?Pruvit, a ketone supplement company, filed suit against former distributors Michael Rutherford and Keisha O'Neal in Texas federal court, alleging violations of non-solicitation agreements. The defendants are accused of recruiting Pruvit distributors to competing businesses, breaching settlement terms established merely months prior to the new litigation.
What were the terms of the previous settlement agreement?
The settlement agreement, concluded after Rutherford's initial lawsuit regarding suspended commissions in May 2023, required both parties to cease promoting non-Pruvit products and prohibited solicitation of Pruvit's distributors, customers, and employees.
Why did Michael Rutherford originally sue Pruvit?
Rutherford initiated legal action in May 2023 against
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