Following a bench trial again in February, Michael Rutherford has prevailed in opposition to defendants Brian Underwood and Pruvit.
In a September sixteenth filed Findings of Truth, the courtroom dominated Pruvit violated a beforehand reached settlement with Rutherford.
The settlement was reached in 2023 and ended Rutherford’s first lawsuit.
As per the settlement, Rutherford was entitled to earn commissions on his Pruvit promoter place. A $100,000 month-to-month cap was applied, with 25% of commissions going to then Pruvit co-founder and CEO, Brian Underwood.
The courtroom discovered Pruvit breached the settlement, prompting Rutherford’s second lawsuit,
by altering Plaintiff’s compensation in methods inconsistent with the phrases of the events’ cut price for 2 causes.
First, Defendant Pruvit improperly withheld commissions from ranges 9, 10, and 11.
Second, Defendant Pruvit improperly terminated Plaintiff’s commissions after April 17, 2024.
The courtroom rejected Pruvit’s protection that it was justified in breaching the settlement as a result of Rutherford
- didn’t block and/or unfriend Pruvit promoters on social media;
- continued to speak with the “Pruvit neighborhood”; and
- solicited Pruvit promoters “to affix different ventures”.
The settlement settlement doesn’t comprise any time period requiring Plaintiff to dam people on social media.
As to communications with Defendant Pruvit’s neighborhood, the proof within the file doesn’t present by a preponderance that Plaintiff engaged in solicitation in violation of the settlement.
[Pruvit’s Chief General Counsel Jennifer] Grace testified usually that Plaintiff continued to speak and solicit others, however she didn’t persuasively determine a particular motion that undoubtedly breached the contract.
The courtroom dominated Pruvit was chargeable for damages consequently. Brian Underwood was deemed to be not individually liable, past benefitting from his 25% settlement commissions carveout.
Apparently, the courtroom rejected Rutherford’s declare he was “owed over $600,000”. The courtroom discovered Rutherford’s determine was “a tough approximation not supported by contemporaneous data”.
As an alternative, the Courtroom finds that Plaintiff’s month-to-month earnings in the course of the baseline interval averaged roughly $48,500.
This quantity was primarily based on examination of “monetary log funds” offered by Pruvit.
In calculating $235,166 in damages awarded to Rutherford, the courtroom restricted calculations up till the trial date. Rutherford was additionally awarded authorized prices and post-judgment curiosity.
Pruvit was ordered to reinstate Rutherford’s commissions from the trial date until completion of the initially agree upon three-year settlement interval.
In March 2025, Underwood and fellow Pruvit co-founder Terry LaCore offered Pruvit to Herbalife.
