New Jersey Company Sues Private Equity Fund For Fraud In Collapse Of Diet Company Sensa

ROSELAND, N.J., May 5, 2015 /PRNewswire/ -- A New Jersey based company which was the major distributor of the popular weight loss product of now defunct Sensa has filed suit in California against the private equity firm and its principals for fraud arising out of the collapse of Sensa.

Windmill Consumer Products, a 40 year old, New Jersey based company which distributes nutritional products to the mass market has filed suit in California, against the owners of the now defunct Sensa Inc., Adam Goldenberg, Don Ressler, and private equity technology giant, Technology Crossover Ventures ("TCV") and its partner John Drew, who was a director of Sensa. Windmill alleged in its complaint, that the defendant's orchestrated a massive fraud on Windmill and its Retail Customers. While negotiating a massive fine of $26 million with the FTC (Federal Trade Commission), the defendants gave worthless guarantees to Windmill in order to induce Windmill to sell more product. Sensa, started by Adam Goldenberg and Don Ressler and funded by the TCV sold over $300 million of weight loss products direct to consumers and to retail. The subsequent collapse of Sensa due to misleading advertising practices triggered millions of dollars in returns. Sensa left Windmill holding the bag to pay back Sensa's debt of over $10 million to retailers across the country. As part of the fraud TCV, the board and officers of Sensa falsely represented that Sensa's parent has sufficient assets to guarantee the remaining obligations, prompting Windmill to continue selling on behalf of Sensa while, unknowingly, Sensa had already signed a consent decree but failed to advise the retailers or Windmill.

Sensa's parent, Intelligent Beauty Holdings, stripped the company of assets and is now opening an $80 million facility as featured in Forbes Magazine.

TCV is best known for its investments in a number of Silicon Valley start-ups including Netflix, Facebook and Zillow. Goldenberg is currently promoting JUST FAB, another California based internet retail company which was recently valued at $1.1 billion.

Windmill Health Products LLC is being represented by Nagel Rice LLP. The case is Windmill Health Products LLC v. TCV Technology Crossover Ventures, BC576327, Superior Court of California, County of Los Angeles (Los Angeles).

SOURCE Nagel Rice LLP