Muscle Pharm Corporation (MSLPQ)

[Madcowelixir]

Another "scam" pulled by Ryan on a 9 year supplier; this one for $4.6m. SK Labs. Lets count some of the others: Capstone, 4Excelisor, Nutrablend, Bakery Barn, ThermoLife, Natural Flavors, etc.....all told probably $40m by my rough estimates. And SLC wonders how MusclePharm has avoided bankruptcy to date. Evidently you have to "steal" other businesses wares and not pay them and then sell the suppliers product to Costco and Amazon to fund MSLP's -$14.5m in losses the past 12 months.

On May 3, 2022, SK Laboratories sued MusclePharm and Ryan Drexler in Los Angeles County Superior Court. In its lawsuit, it is alleging (1) breach of contract, (2) breach of personal guaranty, (3) fraud, (4) unfair business practices, (5) intentional interference with prospective economic advantage, (6) negligent interference with prospective economic advantage, and (7) common count on book account claim. According to the Complaint, SK Laboratories was a contract manufacturer for MusclePharm for approximately nine years manufacturing “a variety of nutritional supplement products.” Further, according to the complaint, SK Laboratories alleges that MusclePharm has defaulted on payments due on purchase orders totaling approximately $4,608,980.12, and a breach of personal guaranty of approximately $500,000 against Ryan Drexler for purchases of whey protein SK made on MusclePharm’s behalf. There has not been substantial activity in this case given its early stage. MusclePharm’s answer is due on approximately June 21, 2022.