MusclePharm Corp., the Denver-based sports nutrition retailer, has reached a settlement in a multi-million dollar contract dispute with its former chief supplier, Capstone Nutrition.
for $65 million in May, alleging the company failed to meet minimum volume requirements and didn’t pay for $22.5 million worth of product it received.
MusclePharm countersued in June, saying Capstone, which is based in Ogden, Utah, overstated its ability to fulfill the contract, resulting in long delivery delays, stale product and lost customers. It also claimed an investor in Capstone was trying to use the dispute to take over MusclePharm.
Under the settlement, MusclePharm will pay an undisclosed amount of cash and other consideration to Capstone. MusclePharm also agreed to dismiss its counterclaim.
“Capstone has seen dramatic customer growth and confidence since moving on from the MusclePharm relationship last year, and we are pleased now to have reached such a satisfactory settlement, thereby ending the MusclePharm chapter,” Capstone CEO Jared Leishman said in a press release.
