A federal judge in Florida issued a preliminary injunction on December 1st, ordering Todd Smith, Blake Graham, and Total Nutrition Inc. to cease using specific Youngevity phone numbers and websites. Youngevity had accused the defendants of misusing company assets to market competing products. The court found that allowing the continued misappropriation of Youngevity's likenesses and customer information would cause irreparable harm, difficult to quantify in monetary damages.
Youngevity originally filed suit earlier this year, alleging that Smith, Graham, and Total Nutrition had effectively gutted the company from within. In May, Youngevity sought an injunction to stop the defendants from using "Youngevity properties" to market and profit from Youngevity products. The initial request for an injunction was denied in June due to deficiencies in the original complaint.
An amended complaint was filed in July, and Youngevity again requested a preliminary injunction. The defense argued that a two-year statute of limitations barred the claim, but the court rejected this, noting it would mean any plaintiff withdrawing consent after two years would automatically have their claim dismissed. The court agreed that Youngevity would suffer irreparable injury if the injunction was not granted.
Competitors gaining access to confidential customer information can cause significant damage to a company's market share and goodwill, the court stated. The judge also found that Smith, Graham, and Total Nutrition had failed to offer any persuasive reason why they should be allowed to continue misappropriating Youngevity's likenesses. The December 1st order also addressed Wakaya Perfection's motion to dismiss.
The court denied a motion for reconsideration filed by Smith, Graham, and Total Nutrition on December 7th, but provided clarification. The defendants must stop operating the specified phone number and websites. These assets can be sold, but the buyer must be notified of the injunction and receive written confirmation that the assets will be operated lawfully. The defendants can still sell excess Youngevity stock they possess, but not through the enjoined phone number or websites.
The injunction does not apply to Engevity, a Youngevity-related company. The court stipulated that Blake, Graham, and/or Total Nutrition cannot use any control they may have over Engevity to operate the enjoined assets. The original December 1st order also addressed Wakaya Perfection's motion to dismiss Count 1 of Youngevity's complaint.