By Ted Nuyten
On 20 February we published court documents (we did not make it up….) in which Jeff Olson – CEO Nerium International is accused of numerous inappropriate transactions by 2 partners / shareholders:
1. Nerium SkinCare (NSC) is a division of Nerium Biotechnology Inc., President is Dennis Knocke.
2. Nerium Biotechnology inc. (NBI) CEO is Dennis Knocke, the company owns 30% of Nerium International.
So there are 3 different Nerium companies, which make the case confusion. Nerium International and NSC/NBI have business disputes with each other that they are addressing in court.
The article got over 100,000 hits and many Nerium network marketing distributors were more than upset.
Business For Home was able to retrieve a letter by a group of shareholders from Nerium Biotechnology Inc represented by Donald R. Gardner, and Gardner represents a large part of the shareholders from Nerium Biotechnology.
According to the court documents:
Don Gardner is a shareholder of NBI (Nerium Biotechnology). Over the past several months, Mr. Gardner has been campaigning among other NBI shareholders to marshal support to oust NBI management. (Dennis Knocke)
He filed a lawsuit in Canada attempting to achieve those goals, and he has contacted shareholders to requisition a shareholder meeting to replace NBI’s board of directors.
The letter from Gardner says that a group of shareholders do not believe Jeff Olson has committed any fraud. As a result, it also says the Nerium Biotechnology Inc. shareholders are in the process of to removing their CEO – Dennis Knocke.
In this case it seems 2 partners of Nerium International have big arguments with Nerium International, however they also have internal fights. None is good for distributors, it creates massive FUD (Fear, Uncertainty, Doubt).
Allegations and / or accusations has yet to be proven in court. However the Court denied Nerium SkinCare/ Nerium Biotech’s Preliminary Injunction Request based on them not establishing a substantial likelihood of success on the merits.
The letter from Gardner to Olson dated February 22:
We are writing to you today on behalf of a group of shareholders of Nerium Biotechnology, Inc. (“Nerium Biotechnology”), representing millions of shares of Nerium Biotechnology’s stock. As you are aware, over the last several months this group, referred to as the “Shareholders Group”, has engaged in a number of actions designed to effect change in the senior management of Nerium Biotechnology.
These actions are reflective of our belief, as significant shareholders, that the manner in which Nerium Biotechnology is managed is not in the best interest of Nerium Biotechnology or its shareholders. A significant portion of our dispute with Nerium Biotechnology’s management is the ongoing degradation of its relationship with you and Nerium International, LLC (“Nerium International”), Nerium Biotechnology’s partner and only customer.
This week an article was published on a website including incendiary content and accusations, best described as malicious, may have been fed to this publication by representatives of Nerium Biotechnology. Through this letter we wish to extend our sincerest apologies on behalf of Nerium Biotechnology’s shareholders. These accusations do not represent our belief of the facts, or knowledge of the issues. This “article” was nothing more than an attempt at character assassination, which we find reprehensible.
Most appalling, and embarrassing to us as shareholders of Nerium Biotechnology, are the allegations of fraud levied against you. It appears that Nerium Biotechnology, and its attorneys, have taken transactions undertaken in the normal course of business and are attempting to assign nefarious intent to them. As you know, the Shareholders Group has undertaken a preliminary investigation of many of these issues with the following findings:
We can assure you that we are continuing our efforts to replace the board of directors and management of Nerium Biotechnology and look forward to resolving the issues between Nerium International and Nerium Biotechnology so that we may all enjoy a successful business relationship in the future.
Donald R. Gardner