Written by: Sam Orlando
DALLAS, TX - In what could be called a cautionary tale of e-commerce—or maybe just a case of misplaced trust—Therabody, Inc., the revered guru of muscle relaxation, finds itself in an awkward position. The wellness tech giant filed a lawsuit against Dominion Sourcing, LLC, and its founder, Mr. Walton, alleging they defrauded the company to the tune of $4,656,304. Oh, the price of naïveté!
A Series of Very Expensive "Gifts"
Dominion, in an apparently "generous" move, purchased a staggering 24,592 Therabody products for what they claimed would be corporate gifts. Because nothing says "I appreciate you" to your employees like buying in bulk, am I right? These "gifts" amounted to $3,837,504 but would have retailed at a neat $8,493,808 according to MSRP. Someone got a discount, and it wasn’t the average consumer.
The Fine Print That Wasn't So Fine
How could Therabody not foresee the pitfall? It's not like they didn't have an Agreement that explicitly prohibited reselling or transferring their products to third parties. They even go to the lengths of tracking their products with unique identification numbers. But hey, trust is a virtue, until it isn't.
When a Theragun Isn't Just a Theragun
Fast forward to Therabody’s “aha moment” when they found their Theragun products up for resale on Amazon. A quick check of product identification numbers led them right back to their friends at Dominion. Awkward. According to Therabody, Mr. Walton was less the naive business partner and more the mastermind behind this resale operation.
Legal Limbo, or How to Have Your Cake and Not Arbitrate It Too
Here's the kicker: Dominion tried to dodge the lawsuit by pushing for arbitration. When Therabody agreed, Dominion suddenly had a change of heart. Maybe they just wanted to make court reporters’ lives more interesting.
Asking for a Little More Than Pocket Change
The company is now seeking a rather modest $4.6 million in compensatory damages, along with punitive damages, attorneys' fees, and other costs. Basically, the amount you'd expect to pay when you’ve taken trust out for a very, very long dinner and then skipped on the bill.
When “Trust But Verify” Becomes Just “Verify”
The lawsuit raises more than just an eyebrow. It also raises questions about corporate ethics and the blind spots that can appear when companies assume their carefully drafted Agreements are foolproof. Or should we say, Walton-proof?
At the time of publishing, neither Dominion Sourcing nor Mr. Walton had emerged from their presumably comfy, well-massaged silences to comment on the allegations. As they say, it's all fun and games until someone files a $4.6 million lawsuit.
And so, Therabody learns the hard way that in business, trusting someone’s word can be more painful than muscle knots their Theraguns are designed to relieve.
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