Utah Supreme Court considering XanGo case

Deseret News

The Utah Supreme Court heard arguments Monday from a group of investors who are challenging the dismissal of a case they filed against six founding members of Lehi multilevel-marketing company XanGo LLC.

The legal issue that the justices will consider is whether 4th District Judge Fred Howard rightfully dismissed the case and correctly applied Utah Rules of Civil Procedure.

The investors, who identified themselves as Angel Investors LLC and as a "few neighbors and friends" who "pooled their savings and invested it in an unknown startup company called XanGo," filed lawsuits in 2006 and 2007 against the company, which sells juices and personal-care products.

The original court complaints are sealed, but at the court proceeding Monday, the Angel Investors' attorney, Mary Anne Wood, said the investors "became concerned by evidence of extravagant lifestyle and compensation" of the six founders — Aaron Garrity, Bryan Davis, Gary Hollister, Gordon Morton, Joseph Morton and Kent Wood.