Thursday, September 6, 2007

TEAM: Filing of More Than 1,400 IBO Affidavits in Support of Mighty 15

Original Source


September 06, 2007 10:26 AM Eastern Daylight Time
Ex-Quixtar Distributors Represented by Shughart, Thomson & Kilroy Announce the Filing of More Than 1,400 IBO Affidavits in Support of Plaintiffs

Affidavits From 26 U.S. States and Canada Illustrate Assertion That Quixtar Encourages Distributors to Self-Consume Overpriced Products

LOS ANGELES--(BUSINESS WIRE)--The group of top ex-Quixtar, Inc. distributors that brought suit against the company on August 9 announced today that more than 1,400 affidavits of current and former Independent Business Owners (IBOs) were filed Tuesday night in Federal Court in Los Angeles in support of the plaintiffs’ motion for preliminary injunction.

The affidavits provide further evidence to support claims from the plaintiffs’ Tuesday Los Angeles filing, including that IBOs are unable to retail Quixtar’s products due to dramatic overpricing. The statements also allege that distributors are then forced to purchase Quixtar’s products themselves in order to qualify for bonuses, a practice commonly encouraged by the company.

“The language throughout the affidavits makes it clear that these IBOs really wanted to make this business work for them, but the product pricing – among other factors – just wouldn’t allow it,” said D.J. Poyfair, attorney for Denver-based Shughart, Thomson & Kilroy, the firm representing the former distributors in the original federal lawsuit.

Affidavits were executed by IBOs in 26 U.S. states and Canada, with more than 800 from Michigan, nearly 200 from Ohio and more than 150 from California.

Below is a cross-section of statements taken from the affidavits written by IBOs across the nation regarding Quixtar’s questionable business practices.

“Buying edible or non-edible items for a price that is above what a brick and mortar store sells them for, is in my opinion, like throwing your money away.” (Virginia)
“I have been unable to resell any product to non-IBOs, thus forced to consume my purchases. I am also [in the top sales performers], and this is incredible.” (Michigan)
“When purchasing products from Quixtar, I only purchase just enough to get my PV [bonus] and the rest at Costco.” (Florida)
“I’ll buy products so that I can hit a higher bracket for the rebates. I first did this because Quixtar would send me emails to buy some of their bracket buster products.” (Florida)
“Quixtar has NEVER asked me for any customer receipts in almost four years. What kind of integrity is that?” (Ohio)
“I believe Quixtar takes advantage of our loyalty to the business to stuff their pockets.” (Ohio)
“I foresee continued ignorance to the real issue and a continued struggle for the IBO who just wants to build their business in a legal, moral and ethical way.” (California)
“Quixtar has a bad reputation in the consumer community, and I am beginning to see why. They are dishonest and unethical, and I cannot and will not be a business associate with them if they continue these practices.” (Ohio)
“Legally, I find Quixtar to be loose and pyramid-like, especially when I see so many of the rules and regulations being fudged.” (Michigan)
About Woodward et al. v. Quixtar, Inc.

On August 9, 2007, a group including eight of the largest Quixtar distributors filed a lawsuit seeking to enjoin Quixtar from enforcing its distributor contracts, including the non-competition and non-solicitation provisions. The plaintiffs allege that the company knowingly operates as a pyramid scheme and prevents its distributors from leaving the organization through the aforementioned provisions. On August 10, 2007, the group sought a preliminary and permanent injunction restraining Quixtar from enforcing or attempting to enforce the non-competition and non-solicitation provisions. More information regarding Woodward v. Quixtar, including relevant court documents, is available at

Posted by The IBO Rebellion at 2:24 PM

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