On July 14, 2025, Clarissa Jones, a former Pruvit employee since 2019, filed a lawsuit in Jefferson Circuit Court, Kentucky, accusing CEO Brian Underwood and Pruvit of sex discrimination and assault, per court filings reported by Reuters. Jones, who held roles in marketing and communications, claims Underwood subjected her to relentless sexual harassment from the start, including suggestive comments, requests for sex and nude photos, sending explicit images, and gifting her lingerie. A particularly egregious incident allegedly occurred weeks into her tenure, when Underwood rubbed his erect penis against her in a copy room. Jones alleges her refusals led to demotions, pay cuts, and, after declining a sexual advance tied to a salary request in October 2024, her termination on October 31, per Forbes. The lawsuit paints a hostile work environment causing severe mental anguish.
Underwood, who co-founded Pruvit in 2015 with Terry LaCore and Chris Harding, remained CEO after Herbalife acquired the company in March 2025, per Business Wire. Jones’s complaint details a pattern of predatory behavior, with Underwood allegedly pressuring her to visit his home for non-business reasons. The lawsuit cites two counts of sex discrimination against Pruvit for conditioning employment on sexual compliance and one count of assault against Underwood, per Law360. This follows a 2024 lawsuit by Michael Rutherford, alleging Underwood misappropriated commissions and cross-recruited into Frequense, another MLM, per Cointelegraph. Pruvit’s ketone supplement business, generating $1B annually, faces reputational risk amid these claims, per Crunchbase. Technical risks include potential disruptions to Pruvit’s blockchain-based affiliate tracking if investor trust falters, per Finance Magnates.
The arrest aligns with global regulatory scrutiny of pyramid schemes, like CryptoProgram and iGenius, and follows Spain’s 2024 bust of a $540M crypto fraud, per CoinDesk. Bitcoin ($114,635) and Ethereum ($3,553) remain resilient, buoyed by $3.6T market cap gains and SEC’s Project Crypto, per CoinPedia News. However, Altcoins like Polkadot ($3.56) and Pi Network ($0.34) face selling pressure, per BH News. myWorld’s downfall may redirect investor focus to regulated assets like BTC and ETH ETFs, with $588.6M and $71.2M in July inflows, per SoSoValue. X posts from @CryptoSlate warn of declining trust in loyalty-based crypto schemes, potentially boosting stablecoin demand. Trump’s tariffs and weak U.S. jobs data add volatility, per CoinoMedia, complicating recovery for fringe tokens.
The lawsuit lands as Herbalife, Pruvit’s parent, navigates its own FTC scrutiny over MLM practices, per Reuters. Jones’s case could amplify regulatory focus, echoing Spain’s myWorld pyramid scheme bust and Apertum’s legal battles, per El País. The crypto market, rebounding to $3.6T with Bitcoin at $114,635 and Ethereum at $3,553, per CoinPedia News, remains insulated, but MLM-linked tokens like APTM may face scrutiny. X posts from @MLMWatchdog warn of declining trust in MLM schemes, potentially boosting BTC and ETH ETF inflows ($588.6M and $71.2M in July, per SoSoValue). Pruvit’s distributor network, with 70% of revenue from U.S. affiliates, risks defections, per Forbes. Jones seeks damages for lost wages and emotional distress, with no trial date set, per Jefferson Circuit Court records.
Pruvit distributors should brace for fallout, as Underwood’s case could trigger sponsor exits, similar to Lyoness’s collapse, per Crypto.news. Investors should pivot to regulated assets like BTC or ETH ETFs, with Bitcoin holding $111,000 support, per TradingView. Monitor SEC and FTC updates via @CoinDesk, and verify MLM legitimacy on BBB.org.
