Pruvit Faces California Class-Action Over Distributor Misclassification
On February 13, 2025, Jennifer Carrera filed a class-action lawsuit in Contra Costa County Superior Court, California, claiming Pruvit Ventures Inc. misclassified its distributors as independent contractors rather than employees. The suit, targeting Pruvit, its parent company LaCore Enterprises, and executives Brian Underwood, Christopher Harding, Terry LaCore, Jenifer Grace, Debra Aaron, and Blake Mallen, argues that distributors are integral to Pruvit’s operations, warranting employee protections under California’s AB 5 law.
AB 5 and the Misclassification Claim
California’s AB 5, enacted in 2019, uses the “ABC test” to determine worker status. For Pruvit distributors to be independent contractors, the company must prove:
- Workers are free from control in performing their duties.
- Work is outside the company’s core business.
- Workers operate an independent trade or business.
Carrera alleges Pruvit fails this test, as distributors market keto supplements, recruit customers, and drive website traffic—core business activities—under strict company guidelines. She claims Pruvit’s MLM model exploits distributors with minimal commissions while avoiding millions in labor costs.
Direct Sales Exemption Challenged
Pruvit’s defense hinges on AB 5’s “direct sales” exemption, which applies to in-person sales like door-to-door or Tupperware parties. Carrera argues this exemption doesn’t cover Pruvit’s online-focused model, where social media and digital marketing dominate. She seeks employee classification to recover unpaid wages, overtime, penalties, and legal fees for California distributors.
Case Developments and Context
An amended complaint was filed on April 18, 2025. A June 23 Case Management Conference noted a time-sensitive “999 settlement offer” from Pruvit, with the next conference set for October 6. Notably, Pruvit was sold to Herbalife in March 2025, but the lawsuit targets its prior operations under LaCore Enterprises.
Broader Implications
The lawsuit echoes broader scrutiny of MLM practices, with companies like Herbalife facing similar allegations of pyramid schemes and deceptive practices. If successful, Carrera’s suit could reshape how MLM distributors are classified, potentially costing Pruvit millions and setting a precedent for the industry.