Nerium Skincare and Jeff Olson reach settlement agreement
On June 27th Nerium Skincare and Jeff Olson filed a Joint Settlement Report.
The report detailed a fourth mediation session, held on June 12th. After the one-day session, settlement negotiations continued, unsuccessfully, until June 22nd.
This was the parties’ fourth mediation. As before, the parties negotiated and made good faith efforts to settle the case.
However, no settlement agreement was reached. No further
negotiations are contemplated at this time.
Something changed after June 27th, with both parties informing the court a settlement had been reached on July 26th.June 26th is significant, as it is also the date a scheduled Pretrial Conference was to be held.
Nerium Skincare and Jeff Olson’s settlement was reached literally at the eleventh hour before the scheduled July 30th trial.
To further emphasize a point, Nerium Skincare filed suit against Olson all the way back in 2015. As of July 26th, there have been 567 filings in the case.
To say the relationship between the two parties was bitter is a an understatement.
As per a press-release issued a few hours ago, details of the settlement reveal Olson and Nerium International bought Nerium Skincare out.
Nerium International’s executive team is pleased to inform you that we are moving forward with business as usual.
Under terms of the agreement, Nerium International purchased Nerium Biotechnology’s minority ownership interest in Nerium International at a great value.
This allows us to take 100% control over the future of Nerium International and allowed us the opportunity to protect our brand partners’ businesses.
As part of the settlement, the pending litigation with Nerium Biotechnology in Hong Kong is also resolved, which will allow us to expand our product offerings in that important market.
How much Nerium International bought Nerium Skincare out for wasn’t disclosed.
In their initial complaint, Nerium Skincare accused Olson of running “illegal financial schemes”. The company claimed it had been underpaid as a result.
Update 31st July 2018 – A July 27th press-release issued by Nerium Skincare’s parent company, Nerium Biotechnology, reveals Nerium International bought Nerium Skincare out for $10 million.
The parties entered into a settlement agreement effective July 26, 2018 that provides for the settlement of all disputes pending between the parties.
The terms of the settlement provide for the payment of US$10,000,000 by NI to the Company’s subsidiary, Nerium Skincare, Inc. (“NSC”), US$6,000,000 of which was paid on July 26, 2018, with the balance to be paid over a three-year period.
As part of the settlement, Nerium Skincare will continue to supply Nerium International with NeriumAD Night, NeriumAD Day and NeriumAD Firm products over a ten month “transition period”.
During the transition period and thereafter, Nerium Skincare retains ownership of “key trademark and other intellectual property rights”.
Nerium Skincare is also able to ‘develop new products and pursue new business opportunities … (outside of) specified regions where NI carries on business.‘