Former Modere prime earner Justin Prince has sued Modere following his termination.
In a Grievance filed earlier this week within the Fourth District Courtroom of Utah, Prince names Modere, Maple Mountain Enterprises, Maple Mountain Group (previously Neways), James Zenni Jr., George Russell, Z Capital Companions, Z Capital Industrial Finance LLC and Z Capital Group LLC as defendants.
Prince (proper) began with Modere when it was Neways again in 2012. Prince cites himself as an fairness holder in Modere and accountable for $2.5 billion in gross sales.
A 12 months in the past Prince described Modere as a “world class firm” the place “folks win”.
In his filed Grievance, Prince claims Modere is now “straddled with debt” and “failing”.
Modere got here below the management of a personal fairness investor, Z Capital (in 2013).
Revenues grew and Z Capital seized a chance to restructure its debt on the again of Modere, for the good thing about Z Capital and its companions.
The mortgage proceeds weren’t reinvested into Modere and Modere was straddled with extreme debt – and poorly administration [sic] by its Board of Administrators.
Modere’s enterprise started failing as gross sales declined, leading to decreased commissions for Justin and different distributors.
Prince claims he was ultimately terminated as a part of Modere’s effort to “stays financially solvent”.
Modere wrongfully terminated its relationships with Justin, stored the commissions he earned, and usurped Justin’s huge community of practically 60,000 downline entrepreneurs.
This declare seems to be based mostly on George Russell, Modere’s Government Chair, informing Prince that “Modere was heading for chapter”.
Prince claims in August 2023, Russell instructed him to
message his downline (to tell them of) deliberate fee cuts, layoffs, value reducing and Modere’s CEO Asma Ishaq being stripped of her energy.
Ishaq (proper) additionally reportedly instructed Prince Modere was in dire monetary straits in Could 2023.
There’s a time hole in Prince’s Grievance between August twenty eighth, 2023, whereby Modere laid of 30% of its employees, and October twelfth, the date Prince was terminated.
Prince claims his termination got here a day earlier than “Modere was to pay (him) practically $300,000 in each month-to-month and quarterly commissions”.
Following his termination, Prince goes on to say Modere is “partaking in a deceitful marketing campaign to defame him and malign his fame”.
This contains accusing Prince of
disseminat(ing) confidential enterprise data and misinformation to key staff … (and) attempting to destabilize Modere’s workforce and recruit them to depart Modere and begin a brand new firm with him.
Modere additionally purportedly held a webinar attended by “practically 200 distributors”.
Modere instructed everybody attending the digital assembly that Justin had dedicated critical, egregious breaches in opposition to Modere, and was colluding with third events to undercut Modere’s enterprise, hurting not solely Modere’s enterprise, but in addition Justin’s enterprise, Justin’s downline’s enterprise, and the enterprise of these in attendance.
Prince categorically denies Modere’s claims in his Grievance.
Causes of Motion cited in Prince’s Grievance embrace:
- failure to pay commissions
- breach of contract
- breach of implied covenant of excellent religion and honest dealing
- interference with present financial relations
- unjust enrichment and
- defamation
Sadly I’m not accustomed to Prince and his involvement in Modere, so I don’t actually have something to report past what’s in his Grievance.
Additionally unlucky is Prince’s Grievance being filed on the state-level, which means I gained’t be capable of personally monitor it.
To the perfect of my information, aside from holding webinars Modere has not publicly addressed Prince’s termination.
