Amway sued for antitrust violations, civil conspiracy, racketeering - and more!

by: matt

Wed Sep 06, 2006 at 11:36:06 AM EDT

Count I: Antitrust Violation - Group Boycott:

Count II: Antitrust Violation - Allocation of Customers

Count III: Antitrust Violation - Price Fixing

Count IV: Antitrust Violation - Conspiracy to Monopolize

Count V: Tortious Interference

Count VI: Injurious Falsehood

Count VII: Civil Conspiracy

Count VII: Violation of Title 18, U.S.C. 1962 (Racketeering!)

Defendant Quixtar, Inc. (“Quixtar”) was incorporated in Michigan on July 21,1999, and then merged on or about November 1, 2002, with an entity known as Quixtar, Inc., a Virginia corporation incorporated in 2001, to form the Defendant Quixtar. Quixtar (the Virginia corporation), registered to do business in Michigan on January 29, 2001. On knowledge and belief, Alticor is the parent company of Quixtar. Quixtar is the company used today by Amway to conduct its multi-level marketing business in North America. Amway still does business outside of North America as “Amway.”

15. Amway moved all of its distributors in North America with or without their consent to Quixtar effective January 1, 2003. Prior to that time, beginning in late 1999 or early 2000, Amway attempted to persuade Amway distributors to become Quixtar distributors. Publicly, Amway touted that Quixtar was a new “web-based” business alternative to Amway. In reality, on knowledge and belief, this effort was prompted by the adverse publicity and increasing negatives experienced by Amway as abuses within the tool and function business increased.

16. The business operated by Quixtar today is the Amway business. Use of the word “Amway” is discouraged in the Quixtar business. Alticor has simply repackaged Amway’s business into Quixtar. For all practical intent and purpose, Quixtar is Amway, and reference to Amway herein is reference to Quixtar, at least for that time after Quixtar was incorporated.

Former Amway distributors in North America are now Quixtar distributors. A former Amway distributor’s respective position within the Amway pyramid is the same relative position within the Quixtar pyramid.

17. The Defendants are so closely related and intertwined that they each constitute the alter ego of the other two. The acts or omissions of one constitute the acts or omissions of all three. On knowledge and belief, the changes in corporate structure in or about 2000 were legal maneuvers by Alticor to cut off or prevent Amway’s exposure, as well as its founders, the DeVos and VanAndel families, to anticipated claims as well as shirk adverse publicity related to Amway. (emphasis added)