Cases detail board split over CEO Daniel Fabricant; group sues its own board members after ex-employee alleges hostile workplace

Fabricant

The Natural Products Association is suing 10 current and former board members, alleging that they "colluded and conspired" with a "disgruntled" employee to undermine the organization and oust new CEO Daniel Fabricant. The suit—announced in a news release Feb. 4—seeks the dismissal of six current board members, and compensation for NPA's "injuries." The other four board members either resigned or finished their terms since Jan. 1.

According to the court filings provided to CEO Update, these board members objected to changes Fabricant had proposed, including raising dues for the association's retailer members. The documents noted that NPA is governed by a 20-member board of directors, with 10 directors representing retailers and 10 representing suppliers. All 10 current and former directors named in the lawsuit are retail members.

The lawsuit comes two months after Brent Weickert, NPA's former senior vice president and CFO, sued Fabricant and NPA. Weickert claims he suffered retaliation, then was terminated for exposing Fabricant's conduct. In his suit, he alleged that the CEO created a hostile work environment and used association credit cards to spend lavishly at strip clubs.

In the Feb. 4 news release, Fabricant said the named board members sought to undermine NPA "for their personal whims" and that NPA "will continue to vigorously defend itself against false accusations." In another statement issued last week, Board President Roxanne Green said, "We have the utmost confidence in Dr. Fabricant and his ability to continue leading the organization which he has helped to expand, modernize and strengthen the natural products industry."

Fabricant, who has a Ph.D. in pharmacognosy, rejoined NPA as CEO in April 2014. He had left the association in 2011 to help regulate the dietary supplements industry at the U.S. Food and Drug Administration. Government watchdogs criticized the moves, but Fabricant raised NPA's profile in a sector facing intense media and legal scrutiny.

Weickert was an 18-year veteran of NPA before his departure in October 2015. According to the lawsuit, Weickert wrote a letter to Green, the board president, in May 2015 to advise NPA about multiple issues. These included that Fabricant's "drinking had become excessive" and that his "abusive behavior had driven away multiple female employees."

NPA counters that Weickert was an at-will employee who was properly terminated for several reasons: Faced with a budget shortfall, the executive committee determined it would be cheaper to outsource his job functions. Also, Weickert worked from his home in California, which was "not necessarily efficient or prudent." NPA's head office is in Washington, D.C. The group reported $2 million in revenue in 2013.

The court filings detail many alleged improprieties by the former CFO, such as using NPA credit card reward points for his personal benefit, and communicating internal NPA data and information to certain board members beyond his authority to do so.