QUIXTAR: Quixtar and distributors back in court

Original Source

Quixtar and distributors back in court
Updated: Oct 15, 2007 09:00 PM
By JOE LaFURGEY

GRAND RAPIDS -- Quixtar, the online version of Amway, was back in court Monday fighting the distributors who sued the company two months ago.

Quixtar claims the breakaway distributors, who run their own sales training business, have violated Judge Paul Sullivan's ruling in August.

The judge ordered those distributors to stop using proprietary information in their sales training business, to turn over those materials to Quixtar, and stop recruiting other Quixtar distributors, known as independent business organizations, or IBOs.

Lawyers for Quixtar claim the breakaway IBOs have convinced over 7,000 distributors to leave the flock since August.

A separate, federal case filed in California by the breakaways claimed Quixtar is part of a pyramid scheme, claiming the company's business practices made it tough for distributors to do business. The California case was dismissed.

Both sides will have four hours to argue their side of the case. We expect to hear from the distributors on Tuesday, and 24 Hour News 8 will be there for the testimony.