Modere’s Collapse: Employees and Suppliers Left in the Lurch
The abrupt of Modere’s collapse , a multi-level marketing (MLM) company, in April 2025 has left a trail of financial devastation. Beyond misleading its distributors, Modere is now accused of betraying its employees and a key supplier, sparking two separate lawsuits.
Employees Sue Over Mass Layoffs
On April 21, 2025, former Modere employees filed a civil lawsuit in Utah, claiming the company, operating as Maple Mountain Group, fired around 160 workers without proper notice. The layoffs affected roughly 60 employees at the Springville Facility and 100 at the Provo Facility, violating the WARN Act’s requirement for 60 days’ advance notice. The proposed class-action lawsuit seeks unpaid wages, commissions, bonuses, and benefits like vacation pay and 401(k) contributions.
Supplier Alleges $2 Million in Unpaid Bills
A separate lawsuit, reported by the Salt Lake Tribune on June 6, 2025, reveals Modere owes CSB Nutrition, a Spanish Fork-based supplement manufacturer, nearly $2 million. The complaint alleges Modere was already “insolvent” and consistently delayed or underpaid invoices, making minimal payments to keep CSB producing. After Modere’s collapse, CSB claims it can no longer contact the company, despite sending demand letters to Modere’s former in-house attorney, who has since gone silent.
What’s Next?
Modere’s private equity owner, Capital Group LLC, reportedly sold the company to Shaklee, leaving employees and suppliers empty-handed. Former CEO Nate Frazier, accused of misleading stakeholders, has remained silent. While CSB’s lawsuit in Utah state court limits public details, the employee class-action continues to unfold. Stay tuned for updates.