Oh what tangled webs they weave...
So for the kids in the back, there are a few ongoing lawsuits that will likely materially impact the company in the coming months. While many on this board are aware of one or more of these, they have become linked to one another, changing the underlying claims in a way that may be detrimental to Drexler, Musclepharm, the shareholders, or all three.
1) Way back in 2013, Drexler's bro-in-law (Billet) began divorce proceedings against Drexler's sister (Jodi). The major bone of contention is Jodi's claim that she's broke (remember, she's one of the beneficiaries of the $100MM Country Life sale)...Billet doesn't buy it.
2) In late 2016, Billet sues Musclepharm, Drexler, Jodi, and a whole bunch of other players, claiming that Drexler was behind a conspiracy to launder Jodi's cash to keep it out of Billet's hands - specifically, that Drexler received Jodi's cash from the various trusts, and loaned it to Musclepharm. The damages claim was $43MM, and the RICO claim would allow for treble damanges.
3) I'll save you the time. This has not been disclosed in any Musclepharm SEC filing. In a subsequent filing by White Winston, Directors Bush and Desmond are both quoted as stating under oath that they first learned of the Billet lawsuit in September 2018, when Winston filed its discovery motion - nearly two years after it was filed.
4) In 2018, White Winston files a derivative action in NV against Musclepharm, Drexler, and the rest of the BOD claiming a breach of fiduciary duty. Prayer for relief includes appointment of a receiver. A TRO is granted prohibiting Drexler from selling his stock. The Case is approved for settlement negotiations; discovery is ongoing.
5) While all of this is going on, White Winston and Billet become aware of one another's actions; both go on to cite the other's lawsuits in pushing for appointment of a receiver.
6) White Winston wins a motion to conduct limited discover on Drexler & Musclepharm, seeking financial info previously obtained by Billet on the theory that it would show that Drexler did launder Jodi's money to secure his position in Musclepharm, and citing the potential outcome of the Billet suit as a reason to appoint a receiver.
7) Billet cites the White Winston action as a reason to appoint a receiver.
8) In Feb. 2019, After the NV court issues an order allowing limited discovery by White Winston, Musclepharm et. al. appeal. They lose. There's now a motion for reconsideration, and a concurrent joint motion for confidentiality and a protective order.
9) In an unrelated item, Musclepharm has launched a frivolous lawsuit against Obus for his open letter pointing out the financial performance of the company, and Drexler's compensation.
