Youngevity International, Corp. v. Smith

ORDER GRANTING PLAINTIFFS’ MOTION FOR A PRELIMINARY INJUNCTION [Doc. 48] AND GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS [Doc. 50]

Pending before the Court is Plaintiffs’ Motion for a preliminary injunction and *1026 Defendants’ Motion to dismiss. The Court decides the matter on the papers submitted and without oral argument. See Civ. L. R. 7.1 (d)(1). For the reasons stated below, the Court GRANTS Plaintiffs’ Motion for a preliminary injunction and GRANTS IN PART and DENIES IN PART Defendants’ Motion to dismiss.

I. Background

This dispute arises out of a broken business relationship between Plaintiffs and several individuals and corporations who used to do business with them. Plaintiffs are Youngevity International Corporation (‘Youngevity”) and Dr. Joel D. Wallach (“Wallach”). Youngevity is a publically traded company founded by Wallach that engages in the business of selling various health supplements. Youngevity uses independent, direct sellers known as “distributors” to move its product. The individual defendants in this action are former Youn-gevity distributors and / or employees. Defendants Wakaya Perfection Inc. (“Waka-ya”) and Total Nutrition…