FOR IMMEDIATE RELEASE:
COURT RULES THAT SISEL CAN RECRUIT NEWAYS’ DISTRIBUTORS
-SISEL to continue to promote its products and to invite anyone interested to become a SISEL distributor, including Neways’ distributors-
Salem, Utah, February 14, 2008—In May 2007, in an effort to prevent SISEL International (SISEL) from recruiting Neways distributors and from otherwise fairly competing in Japan, Neways filed a lawsuit against SISEL and some of its Japanese distributors. Yesterday, the United States District Court in Utah refused to grant Neways’ request for an order prohibiting SISEL from recruiting Neways distributors in Japan. In denying Neways’ motion for a preliminary injunction that sought to bar SISEL from recruiting Neways distributors, the court stated that there was no basis for any such restraint against SISEL. As a result of the ruling, SISEL intends to continue to promote its products and to invite anyone interested to become a SISEL distributor, including Neways’ distributors.
Tom Mower, Jr., the Chief Executive Officer of SISEL, said, “We at SISEL are gratified that the court made the correct decision in refusing to restrict SISEL from recruiting Neways distributors. People can make their own decisions about which company to join and, after comparing the products and programs of the two, we feel the clear choice will be SISEL.” He continued, “We have always viewed the Neways lawsuit as an attempt to use the U.S. legal system to cut off SISEL’s ability to compete fairly with Neways in Japan.”
In other developments, Neways had also asked the court to find that SISEL had misappropriated confidential information belonging to Neways, and also sought the same ruling against six SISEL distributors who were formerly with Neways. At the court hearing, SISEL’s attorneys informed the judge that SISEL had no such lists and did not use any information that SISEL’s distributors may have received from Neways while they were Neways distributors. SISEL’s attorneys also volunteered, if any such information could be found in SISEL’s possession, it would deliver that information to Neways. Based on SISEL’s offer to deliver these materials, the court ordered that these documents, if any are in SISEL’s possession, be turned over to Neways.
SISEL CEO, Tom Mower, Jr., stated, “We have not, and will not, use any of Neways’ proprietary lists or other information. We will compete against Neways fairly, as we’ve been doing, and have no interest in using any of its confidential information. That information is of no value to us.”
The court’s order included several other aspects:
One SISEL distributor (who was also a former Neways distributor) was completely dismissed from the case.
The court refused to issue an injunction against SISEL distributors Kaoru Kitagawa and Chiharu Hayashi that would have prevented them from recruiting Neways distributors. The court concluded that Neways had failed to show that the Neways Wisdom Manual’s prohibition against cross-recruiting extended beyond the cancellation of Kitagawa or Hayashi’s Neways distributorships.
The court found that SISEL distributors Koji Yamamoto, Toru Egashira, and Fumiko Matsumoto were governed by certain Neways International Policies and Procedures (not the Wisdom Manual binding on most current Neways distributors), which includes a prohibition against recruiting Neways distributors for a year after termination of a Neways distributorship. The court also found, however, that any restrictions on those distributors’ ability to recruit Neways distributors would expire on March 9, 2008, with respect to Mr. Yamamoto, and on May 18, 2008, with respect to Mr. Egashira and Ms. Matsumoto. Afterward, they will be free to recruit Neways distributors to join SISEL.
SISEL views the court’s ruling as a major victory. It means that SISEL is free to compete against Neways and to recruit Neways’ distributors. Tom Mower, Jr., anticipates that SISEL’s tremendous success will continue. “This will be true,” he emphasized, “especially when the people of Japan look past Neways’ litigation tactics and actually consider SISEL’s products and programs. SISEL’s success in Japan and worldwide will only continue due to its superior personal care and nutritional products, strong compensation plan and its outstanding family of distributors.”
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SISEL Contact:
Phil Hadfield
SISEL International
(801) 423-5050
PR Contacts:
Cheryl Snapp Conner and Jamie Kaneko
Snapp Conner PR
801 994-9625
Cheryl@snappconner.com and jamie@snappconner.com
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