Modern lawsuit news: insolvency claims, distributor sabotage suits & the sudden 2025 shutdown, see what really happened and what’s next.
I still remember. The first time a friend texted me,“Wait, did you recognize that? Modere Just… off?”
I half followed. The MLM world for years out of pure curiosity (And yes, a little bit of skepticism), But even I did a double take.
One day Modere was a polished, “clean beauty” wellness brand with that famous Liquid BioCell collagen everyone’s aunt seemed to have sold out. Next, the lights were off. The doors were closed, and a string of lawsuits started making Legal News headlines out of Utah courthouses.
If you landed here to search. “modere lawsuit,” You might try. Piece together the same puzzle I was.So let’s cut. It together, together
The Quick Answer: Yes, there are real ones. Modern Lawsuits
Let’s not bury the lede.
Mother made an appearance. Multiple lawsuits, And many of them came different directions:
- Suppliers
- former distributors
- fired employees
- and even advertising watchdogs.
The company Sudden closure April 11, After 2025 23 years In business, and by May 2025 its remaining assets, including the rights To Liquid BioCell, Trim, and its manufacturing equipment, was achieved by wellness company Shaklee.
Moder himself never filed for bankruptcy. Instead, it’s just… Off, off a trail Of legal disputes behind This.
If you are here because you are.
- A former distributor,
- An existing customer,
- or someone considering whether they should join. a MLM,
Here is the honest breakdown of what actually happened.
Lawsuit# 1: go CSB The nutritional insolvency case
It probably is. The most damning of the bunch.
Csb nutrition, one Of Modere’s major product suppliers, archived a lawsuit I 2025 claim Modere Almost due. $2 million in unpaid invoices.
But the real sting isn’t the unpaid bills, this is the allegation behind them.
According to the lawsuit, Moderate leaders knew. The company was insolvent and continued to order inventory anyway, fully aware that they could not pay for it.
Assess it as maximizing a credit card. You already know you can’t pay, except to hurt yourself, you withdraw. A supplier’s entire business Down with you.
The Salt Lake Tribune covers this story in detail, reporting that Modere Wasn’t filed for bankruptcy but was financially “insolvent” before. Its sudden closure, Absolutely the kind of claim CSB Nutrition’s lawsuit centers on.
He is a heavy accusation.
If it is valid, it paints. A picture of a company which wasn’t just struggling, it was actively making promises to suppliers that it didn’t have. Real ability To maintain.
Lawsuit# 2: Dismissed employees and WARN Action
Here’s where things get personal.
The people who worked Modere’s Utah offices, Not only the independent “Social Marketers” I out the field.
Former employees have followed suit. Legal action to blame that Modere violated the WARN Act, Federal law requiring companies to give advance notice to workers. Mass layoffs or a sudden shutdown.
I’m thinking about it. One A lot, honestly.
Distributors Sign up a MLM Generally understand that there is risk involved. It’s cooked in the business model.
But corporate employees?
People who show up, on time, do it. Their jobs, And trust it their employer Will at least furnish them a heads up before locking them up. The doors?
He is a different kind of betrayal.
If the allegations hang in there, that’s what it means: people I left work one day and found out their jobs, And their paychecks, were just gone.
Lawsuit# 3: Mother vs Its Own Top Distributors
This part of the story was actually before the shutdown, and it’s almost ironic in retrospect.
Lately back in 2023, Modder has ended. Its top global distributor, Justin Prince, And then he turned around and sued him.
So preceding 2024, Modder followed him. Another prominent former distributor, With Amber Delof and several others, alleged that they had breached non- solicitation and non- competition clauses.
Here’s But the twist:
The court actually refused Modere’s request for a temporary restraining order against DeLoof, and Modere left voluntarily the case In mid-2024.
Then this picture:
A company Sues a lot of people who made its sales force, while at the same time (we now know) it slides towards insolvency behind the scenes.
This is a bit favor a captain yelling But the crew To furnish up a leaking ship Instead of patching the hole.
These distributor lawsuits, often with the nickname “modere lawsuit” Conflicts in industry forums, Was about really Modere Trying to catch up. Talent and trade relationships even as the foundation underneath was in pieces.
Lawsuit- Adjacent Trouble: go DSSRC Advertising survey
Not every legal headache Modere has met a courtroom lawsuit in the traditional sense.
In January 2024, go Direct Selling Self- Regulatory Council (DSSRC), an industry watchdog, opened an inquiry I Modere after receiving complaints from a voluntary organization.
The focus was on deceptive health and earnings claims related to marketing its wellness products, Specifically its Ova product line.
Modere finally agreed to edit or withdraw. The misleading advertising aligns with FTC guidelines.
It wasn’t like that. A class- action bombshell, But it’s is worth knowing about because it shows a pattern:
Questions about how transparent Modere What was done, either with suppliers, with distributors, or with everyday customers reading product Online requirements.
So What Actually Happened To Modere?
The timeline is clearly laid out, because I know it. It’s A lot to take in:
- Modere Stopped the operation suddenly. April 11, After 2025 23 years.
- He never claimed bankruptcy in business.
- In May 2025, Shukli Corporation acquired “substantially all”. Modere’s business, including the trademarks, Formulations such as patents and products.
- Liquid BioCell Collagen and Trim, Plus the manufacturing equipment itself.
Shaklee Selling these legacy products through its own network, While Modere’s Original corporate entity I am confused about ongoing debt litigation, including the CSB Nutrition case.
I’ll be honest when I read this part of the story, he reminded me of watching A house is then sold for parts in a foreclosure.
Brand name, the formulas, Equipment, everything is scooped up and repacked. Under a new roof, while the people who put years of their lives are evolving Modere’s sales teams were held. Unpaid bonuses and unanswered questions.
What This Means If you were a Modere Distributor or Customer
If you were a Social Marketer with Modere, I really feel for you.
Many things these MLM closures Let there be independent sellers I financial limbo, Overdue bonuses or commissions that may never be fully met, especially one- off a company’s assets Be sold out instead of finished by formal bankruptcy proceedings.
If it is your situation, this is worth consulting with a consumer or employment attorney to understand if you are in one. The ongoing litigation, connected to some specific unpaid earnings.
If you are a customer Who just loved the Liquid BioCell collagen, toe some comfort:
Shapely is now sold. The same formulas, So the product itself It’s not gone, it just is a new home.
And if you are someone who is researching it because you are considering joining. a MLM Usually two Modere’s story to be a case study.
A Polish brand, slick marketing, And loyal top distributors Not isolated the company from bankruptcy, internal lawsuits, And regulatory scrutiny Everyone beats around the bush at the same time.
It is not so. A reason to assume every MLM is broken, but there is a reason to dig in a company’s financial health and legal history before you invest your time, money or trust.
Often Asked Questions
Is there an active Modere lawsuit right now?
yes
The CSB Nutrition case to blame unpaid invoices And hidden bankruptcies continued through mid-2025, and employee claims WARN Violations of the law have also been prosecuted. The abrupt shutdown.
What Modere file for bankruptcy?
No.
Is Modere a pyramid scheme?
Worked as Modere, a multi- level marketing company, And when he faced trials and regulatory scrutiny over advertising and distributor disputes, none of the legal actions described above were FTC pyramid- scheme prosecutions.
He said the DSSRC’s advertising investigation alludes to earlier concerns about misleading. Earnings claims.
Can I still purchase it? Liquid BioCell Collagen?
yes
Shaklee received the rights To Liquid BioCell, Trim, and other Modere formulas And now sell through them. Its own platform.
What happened to Modere’s top distributors?
Some, value Justin Prince and Amber DeLoof, was sued by Modere itself First the company’s collapse over alleged contract breaches And competitive sabotage.
Many others were left without distributors. Unpaid bonuses once the company turns it off.
Final Thought:
- Do research this whole saga Abandoned with me a strange mix of feelings, Sympathy for the employees and distributors I was caught in the fallout, And a reminder of how quickly a stable company can be opened when the financial cracks Show at the end.
- If you are navigating. The aftermath Personal, as desired a former distributor, Employed, or just a curious customer, I hope so.
- This breakdown gave you the clarity you came here looking for.
Additional Resources:
- The Salt Lake Tribune: “Utah MLM Modere was hiding insolvency, lawsuit alleges”: original local reporting on the CSB Nutrition insolvency lawsuit.
- Nutraceuticals World: “Shaklee Acquires Rights to Modern Products after MLM Shuts Down”: coverage of the Shaklee acquisition and what it means for former Modere products.