Neways v. Moyer , 543 F.Supp.2d 1277 (2008)

Will Neways suffer irreparable harm from SIsal's continued recruitment of current Neways distributors?


Moyer was the founder and former owner of Neways. As part of a divorce decree, he sold his stake in the company to new owners, and immediately started a new MLM company, Sisal, that distributed similar products primarily in the Japan. After Neways was sold, several Japanese distributors became Sisal distributors. As part of their distributor agreement with Neways, the Japanese distributors were prohibited from soliciting other Neways distributors, other than family members or those personally recruited, to join competing MLM companies for one year after their separation from Neways. Neways sued Moyer and Sisal seeking an injunction preventing the company from continuing to solicit Neways distributors to join Sisal, in violation of the distribution agreement.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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