Wakaya Perfection on January 18th filed its response to Youngevity’s legal complaint, largely denying the allegations. The company stated that its distributors are independent and not agents of Wakaya. Wakaya also asserted that Youngevity’s claims were taken out of context and misrepresented.
The company’s counterclaim paints Youngevity as a retaliatory entity. Wakaya alleges that Youngevity, its board members, and founder engaged in a deliberate campaign to sabotage Wakaya’s launch. This alleged campaign, according to Wakaya, stemmed from personal animosity and lacked any legal basis. Youngevity allegedly threatened distributors who showed interest in working with Wakaya, either as a supplement to or replacement for their Youngevity business.
Wakaya claims Youngevity management harbored a perception of disloyalty from founder Samuel Smith. This perception, Wakaya asserts, drove Youngevity’s actions to prevent Smith’s success with Wakaya. The company further alleges that Youngevity actively poached high-ranking affiliates who had a legal right to change affiliations. These terminations, Wakaya contends, were part of a "vendetta" and were unjustified.
The counterclaim also levels specific accusations against Youngevity founder Dr. Joel Wallach. Wakaya alleges Dr. Wallach engaged in "counterproductive behavior," infidelity, and promoted "ill-conceived and unprofitable business decisions." The suit details Dr. Wallach’s alleged pattern of traveling with and sharing hotel rooms at Youngevity events with multiple female companions who were not his wife, some of whom were Youngevity distributors. This behavior was reportedly common knowledge within the Youngevity organization.
Using his influence as founder, Dr. Wallach allegedly pressured distributors, including individuals named Vaughn and the Pitcocks, to place his female companions in preferential positions within their distributor networks. Wakaya claims the Wallach Group was aware of and implicitly condoned this behavior. When distributors resisted Dr. Wallach’s attempts to manipulate their organizational structures, the Wallach Group allegedly responded with vindictive actions.
One such tactic involved Dr. Wallach threatening to withdraw his participation from events or promotional support if distributors refused to accommodate his companions. This threat often coerced compliance. The counterclaim does not name the specific women referred to as Dr. Wallach’s "companions." The Pitcocks reportedly objected to these arrangements.