Neways, Sisel settle lawsuits

0 Comments | Deseret News (Salt Lake City), Nov 19, 2008 | by Laura Hancock Deseret News

Neways Inc. and Sisel International LLC have settled three lawsuits against each other in federal and state courts.

The two Utah County-based multi-level marketing companies sell a variety of household, nutritional and personal-care products. Neither company admitted wrongdoing in the settlement. Other details of the settlement remain confidential.

"The settlement does involve the dismissal of all the pending actions between Neways and Sisel," said Jeff Hunt, an attorney representing Neways. Hunt said the companies had been negotiating a settlement over the last couple of months. On Friday, attorneys filed stipulations for dismissal of the federal suit, Hunt said Tuesday.

Springville-based Neways sued Salem-based Sisel in U.S. District Court in Utah in 2007, accusing Sisel executives of taking Neways trade secrets with them after selling Neways to Dutch company Golden Gate Capital in 2006. Also in 2007, Neways sued two Sisel distributors in Utah 4th District Court, Hunt said.

Sisel in 2008 filed a defamation suit against Neways and two Neways employees in 2008 in 4th District Court, Hunt said. Court records showed Judge Lynn W. Davis dismissed that case with prejudice Tuesday.

"There was a settlement and we are pleased being able to go forward and focus on business," said Philip Hadfield, Sisel general counsel.

Neways was founded in 1992 by Thomas Mower Sr. and Leslie DeeAnn Mower. According to court documents filed in February, the couple divorced and sold Neways to Golden Gate Capital. Thomas Mower formed Sisel in 2005. The lawsuits focused mostly on business in Japan.

Thomas and Dee Mower went to prison after they were convicted of conspiring to impede the Internal Revenue Service in assessment and collection of income tax and income-tax evasion, said federal court spokeswoman Melodie Rydalch. Dee Mower was released Oct. 24. Thomas Mower remains in federal custody and is due to be released Jan. 5, Rydalch said.

E-mail: lhancock@desnews.com