UPDATE: Quixtar VS. IBO's; court hearing continues for a 3rd day

1:15 PM, Aug 23, 2007   |    comments
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Grand Rapids - A hearing will continue Thursday morning for a case involving Quixtar and hundreds of its independent business owners. The IBO's spent Monday and Wednesday in Grand Rapids taking legal action against the internet commerce division of Alticor. The IBO's, as they're called, sell health care and other products under the Quixtar name. They claim they have been threatened with mass firings if they don't renounce other IBO's fired last week for what the company describes as bad business practices. The company claims that the independent distributor's actions were detrimental to the company's operations. Alticor had given the group until 5pm Monday to disassociate themselves in anyway from the 15 banned distributors. However, the IBO's went to court asking the judge to stop that from happening. Attorney's on both sides argued their cases Wednesday. They will continue with more arguments on Thursday morning at 8:30a.m. On Monday, a joint statement, read by Quixtar attorney Ed Bardelli, said Quixtar as agreed not to take any action pending the outcome of Wednesday's hearing. It went on to say:” It should be clear that this matter has been rescheduled and neither side is waiving any rights or arguments relating to the merits of this lawsuit." The 200 or so IBO's who assembled outside the courthouse feared they would lose their livelihoods by the end of business Monday. Several IBO's are also involved in a court case against Quixtar in California. That case alleges that Quixtar is an illegal pyramid scheme. Quixtar lawyers claim the California case is frivolous and the legal action in Michigan is nothing more than an attempt to support the California case. A pair of websites offer differing views on the situation. Alticor offers this: http://media.alticorblogs.com/, while the IBO's suing the company have this: http://www.freetheibo.com/home.html.

John Bumgardner

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