Isagenix
July 17, 2023
The U.S. District Court for the District of Arizona on July 17, 2023 granted a preliminary injunction in Bennett v. Isagenix International LLC requiring Isagenix to restore distributor Jay Bennett and related plaintiffs' access to five distributor accounts and prohibiting interference with their downline structure pending further proceedings. The court also ordered Isagenix to post a 1.5 million dollar bond.
The plaintiffs alleged Isagenix terminated their positions without cause in breach of for-cause termination terms in earlier contracts. The court found they were likely to succeed on the claim that a later no-cause renewal provision was not binding because Isagenix had not shown notice and assent to the change, citing Ninth Circuit contract precedent. Absent an injunction, the court said the plaintiffs faced substantial consequential damages totaling millions of dollars.
Isagenix later moved toward arbitration and appealed the injunction; the dispute remained active through subsequent appellate proceedings. Gilbert, Arizona based Isagenix sells nutrition products through independent distributors.