XanGo Lawsuits Settle Out of Court
11/29/2013
XanGo and a cofounder have settled lawsuits against each other.
Bryan Davis, a cofounder of XanGo, sued the company in Federal court in May, alleging it defrauded him and diluted his ownership interest in the company by falsifying financial information that also led Davis to personally guarantee XanGo's debt. The lawsuit further alleged that company executives had embezzeled millions of dollars from the company for personal expenses such as vacations and expensive gifts.
XanGo countered by suing Davis in state court, alleging that Davis had demanded a buyout and threatened to destroy the company with a lawsuit, used company funds for personal expenses, and made disparaging remarks about the company to top distributors and a competitor.
In 2010, XanGo also settled with a group of investors who claimed the company founders and officers used company funds for personal expenses.