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Scilabs Nutraceuticals Inc., Files Multimillion Dollar Suit Against Naturade for Fraudulent Business Practices
Date:5/3/2010

Scilabs Nutraceuticals, a dietary supplement manufacturer, has filed suit against Naturade, a division of NNC LC, for the alleged misappropriation of trade secrets, fraud, and breach of contract.

(PRWEB) May 3, 2010 -- Scilabs Nutraceuticals, a dietary supplement manufacturer, has filed suit against Naturade, a division of NNC LC, for the alleged misappropriation of trade secrets, fraud, and breach of contract. The complaint, case number 00341089, filed in Orange County Superior Court, Santa Ana, seeks to hold Naturade liable for damages.

As stated in the case, in late 2008 Naturade partnered with Scilabs to develop working formulas for thirteen Naturade brand products. According to court documents from Richard Robinette, CEO of Naturade, these products were distributed to over 25,000 major retailers nationwide including Sam’s Club, The Vitamin Shoppe, vitacost.com, iherb.com, UNFI, Tree of Life, Stop n Shop, Publix, Meijer, and a “host of mid-size and small chains…”. In December of 2009, after the investment of hundreds of hours of skilled research and development on the part of Scilabs, Naturade abruptly severed its contractual ties. Naturade went on to work with other labs and reverse engineer Scilabs’ formulas. In doing so, Naturade allegedly not only breached established contractual agreements, but also violated Scilabs’ right to ownership of its own intellectual property.

According to Paul Edalat, CEO and Chairman of Scilabs, Naturade and Robinette allegedly conspired to defraud Scilabs. In the suit, Scilabs contends that Robinette fraudulently induced Scilabs to do business with promises of longevity and large volumes of production, despite its recent bankruptcy. “(Robinette) had intentions to us
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Scilabs Nutraceuticals Inc., Files Multimillion Dollar Suit Against Naturade for Fraudulent Business Practices 
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