A Pound Ridge business development company claims that a California foot lotion enterprise has walked away from a commitment to pay sales commissions.
The Searchers Group Inc. is demanding at least $250,000 from The Serum Doctor LLC, in a complaint moved to U.S. District Court from Westchester Supreme Court on May 9.
Unbeknownst to The Searchers, the complaint states, The Serum Doctor was “purposefully, intentionally and wrongfully attempting to divert sales … in order to circumvent the payment of the agreed commission compensation.”
The Serum Doctor, of West Hollywood, California, pitches its Flawless Foot File ($20) and Flawless Feet Serum ($42) as an “instant pedicure” kit on its website. It was founded in 2018 by Candice Beroukhim and Jasmine Yamini.
The Searchers was founded in 2009 by Michael Flanagan, of Pound Ridge, to develop, finance and manage fashion, jewelry and beauty businesses, according to his Linked-In profile. It is co-managed by Aleksandra Pochorecka.
Flanagan owned 100% of the business, according to a personal bankruptcy liquidation case he filed in 2022. The Searchers was listed as a codebtor with assets of about $16 and liabilities of $350,000. The petition also listed an unsecured $141,500 claim by Pochorecka for personal loans.
In March 2023, the complaint states, Flanagan and Pochorecka began negotiating an exclusive distribution deal with Beroukhim and Yamini.
The Searchers introduced the skincare products to retail and chain stores, for which it was paid a 15% commission on sales, according to the complaint. It was allegedly understood that The Searchers would continue to receive commissions for sales at those stores as it continued to negotiate a distribution agreement.
Despite The Searchers sharing its know-how, the complaint states, The Serum Doctor abruptly terminated negotiations.
The Searchers accused The Serum Doctor of breach of contract for allegedly refusing to pay commissions, and unjust enrichment for alleged unlawful use of “know-how and effort on the wide range of issues concerning the establishment of a distribution network.”
The Serum Doctor’s attorney, Milad Boddoohi, did not reply to an email asking for his clients’ responses to the allegations.
