XanGo has settled lawsuits by investors who alleged that founders of the successful nutritional drink company had lavishly spent company money for personal expenses.
The so-called Angel Investors, who had owned no more than 1 percent of the Lehi company, had charged in three lawsuits in Utah County that the founders deprived them of some of the return on their investment. The group cited such expenditures as $6,000 monthly auto allowances, family vacations and, in one case, $20,000 worth of home furnishings.
"XanGo and Angel Investors LLC are pleased to announce that they have fully resolved all of the disputes and litigation between them," the two sides said in a statement issued Tuesday by XanGo. "The terms of the settlement are strictly confidential. XanGo and Angel Investors are glad that they have been able to reach a satisfactory resolution, and they look forward to moving on with their respective business interests."
XanGo had portrayed the investors as trying to use the lawsuits to extort more money from the company after they had already made a very healthy return on their investment in Xango, which was launched in 2002. It also had pointed to ties between several of the investors and rival nutritional-drink company Monavie.
XanGo representatives declined further comment, citing the confidentiality agreement.
The attorney for Angel Investors could not be immediately reached.
Aaron Garrity, Joseph Morton, Gordon Morton, Kent Wood, Bryan Davis and Gary Hollister
Members of Angel Investors
Brad Johnsen, Shawn Gibson, Trellis Gibson, Steve Hyde, Stephen Bean and Suzie Bean