AmeriSciences claims that defendants breached several contracts between themselves and AmeriSciences. These included personal appearances, professional management consulting services, trademark registrations, and transfer of ownership of intellectual property assets.

Plaintiff has established that Defendant Buggs is subject to personal jurisdiction in this Court due to his conduct of soliciting Melaleuca Marketing Executives and customers of Melaleuca International while also injuring them; inflicting substantial financial loss upon them as well.

Defendants’ False Claims

Plaintiffs of this lawsuit allege that defendants breached their contracts, misappropriated their business model, forging documents to gain trademark theft, misappropriated their trademarks and violated Racketeer Influenced Corrupt Organizations Act – all allegations denied by defendants who also deny violating contracts.

In addition to these allegations, the lawsuit alleges that Organo’s defendants used unlawful means to secure financial gain through illegal means such as using false names and evading taxes. They failed to fulfill their contractual obligations such as registering and maintaining trademark registrations as well as professional management services contracts – as well as breaching personal appearance commitments as promised under each of them.

Defendants have misappropriated the company’s name, logo and trademarks; recruiting former distributors of AmeriSciences as distributors; breaching fiduciary duties by transferring their interests in the company to themselves; as well as misappropriating distributor networks from various other companies owned by plaintiffs.

A lawsuit filed in US District Court for Nevada claims that Organo Gold brand rights have been fraudulently transferred by defendants and seeks compensation for loss of income and financial harm caused by them, in addition to seeking permanent injunctive relief to stop these fraudulent practices from continuing.

Holton Buggs, Bernardo Chua and Shane Morand are charged with selling Organo Gold coffee beans infused with the medicinal mushroom Ganoderma Lucidum to sell as gourmet coffee beans marketed as healthful alternatives to regular coffee; their company claims the mushroom helps improve mood, digestion and sleep as well as boost immunity.

The lawsuit alleges that defendants used misleading advertising practices to coerce customers into purchasing their products, falsified customer testimonials in marketing materials and deceitfully advertised profits of their business.

Defendants’ Negligence

As well as making false claims and deceiving consumers, defendants have also violated consumer protection laws by failing to disclose that their products contain Ganoderma Lucidum fungi – banned substances in many countries which can lead to serious health problems including organ failure. Allegedly the company failed to inform their website or packaging about this information while this particular strain is linked with various illnesses.

Plaintiff contends that the failure of defendants to disclose this fungus renders their products unfit for consumption and has caused significant harm to customers as well as economic losses. Accordingly, this claim has been properly made out and should go forward.

The court denied Defendants’ motion to change venue, finding Idaho not an unreasonable venue. Defendants operate an international marketing corporation with headquarters in Idaho that conducts extensive business in neighboring states. Furthermore, Holton Buggs resides in Texas but travels extensively on behalf of Organo to conduct his business – regularly attending marketing meetings in Idaho as part of this role.

Buggs claimed in his testimony that he only learned after the event had taken place that those present were former Melaleuca Marketing Executives; however, an affidavit submitted by Sandra Zapata contradicts this claim. Zapata states she served as a Marketing Executive at Melaleuca for over 15 years, so she knew some of the attendees at this meeting. Furthermore, Buggs gave a presentation at this meeting about Organo and encouraged attendees to recruit their own Marketing Executives into joining Organo. At least one attendee, Jose Ardon, breached Cocheu’s confidentiality and non-solicitation agreements with Melaleuca by enrolling as an Organo Marketing Associate through Buggs and enrolling directly under him as an Organo Marketing Associate. These activities also violated Cocheu’s non-solicitation agreements with Melaleuca; additionally, court evidence suggests emails between Cocheu and Buggs regarding distributor lists demonstrates this possibility without receiving anything in return from Organo.

Defendants’ Fraud

The plaintiffs allege in their lawsuit that Organo Gold expanded through an unlawful scheme involving duplication of key portions of Melaleuca’s business model, using proprietary information and recruiting Marketing Executives from Melaleuca while “raider” customers of Melaleuca. Their actions violated various state and federal laws such as unfair competition, misappropriation of trade secrets, breach of fiduciary duty and tortious interference with contracts; additionally they misappropriated over 200,000 confidential customer lists from Melaleuca that were fraudulently transferred over to Organo Gold by misappropriation by misappropriation from Melaleuca by misappropriation of trade secrets or theft or misappropriation by organisians from Melaleuca then fraudulently transferred value over to Organo Gold by misappropriation by unlawful duplication.

The complaint alleges that Holton Buggs unlawfully encouraged Melaleuca Marketing Executives and their customers to switch over to Organo. According to this allegation, Buggs claimed he possessed “secret information” about Organo and would assist them with moving their businesses there. According to Plaintiffs’ allegations, Buggs knew or should have known that Melaleuca Marketing Executives whom he approached had signed non-solicitation agreements with Melaleuca before soliciting them as Organo Marketing Executives.

Defendants disproved all allegations in the plaintiffs’ complaint. They denied any violation of law or contract between themselves and plaintiffs and claimed no liability for damages; additionally they stated they lacked standing to bring this suit against them.

Plaintiffs’ counsel alleged that defendants violated state and federal unfair competition, breach of fiduciary duty, unjust enrichment and fraudulent transfer statutes as well as Colorado Consumer Protection Act violations. Furthermore, it was asserted that these entities misappropriated confidential information belonging to Plaintiffs such as customer lists or financial data belonging to them.

The court denied the defendants’ motion to dismiss on personal jurisdiction grounds. It found that many events of this case took place in Idaho, and therefore Buggs is subject to personal jurisdiction here. Furthermore, it rejected their argument that Scott Weingust’s testimony as the plaintiffs’ damages expert was inadmissible due to improper methodology for valuating distributor networks; ultimately the jury returned a verdict of over $5 Million for them.

Defendants’ Breach of Contract

Rodney Tow alleges in this suit that the defendants breached several contracts and fraudulently transferred assets to Organo Gold International Inc. He alleges being forced to pay for products which he never received as well as suffering profits losses in sales of Ganoderma Lucidum-containing Organo products that failed to properly label or warn consumers about potential health complications caused by them.

Defendants maintain that Tow’s claims should have been dismissed, including breach of contract and fraud allegations, without his right to a jury trial on those matters. Tow and his attorneys disagree with that position; Tow alleges Defendants engaged in dishonest business dealings with Aussie and Norman while breaking the False Advertising Act by making false representations about their products. They further assert that Scott Weingust’s testimony regarding Norman’s distributor network value should have been excluded as unreliable evidence under Federal Rule 702 as unreliable evidence.

Tow’s claims also assert that Defendants breached contracts between Melaleuca and its Marketing Executives by encouraging and aiding Buggs in recruiting former Marketing Executives into Organo. More specifically, during an Organo presentation held during September 2008 meeting they claim they invited attendees to take part, encouraged them to cancel their Melaleuca accounts, and recruited them as Marketing Executives with Organo.

Defendants also assert that Idaho is an inappropriate location to hear this case, since neither Organo’s international leader, Defendant Buggs, resides there; additionally, many of the events occurred near Idaho border states such as Washington and Nevada – this reasoning does not stand up. Therefore, Idaho stands as an appropriate venue.