“Such fraud influenced clients to use Gizmo! to produce infomercials, when in fact Gizmo’s undercapitalization meant that the clients were taking on the risk of never having their products reach market,” according to the complaint. “If you wish, we can discuss diluting that interest by adding interest in other companies in the Gizmo! group.”Ĭartwright alleges these statements were false and that Bieler never intended to pay her $13,170 a month nor give her 10 percent of the company.Ĭartwright also alleges Bieler misrepresented the financial health of the company to her, investors and clients, including Peter Breitinger of infomercial company Smart Inventions, Los Angeles, Mike Micek of West Teleservices Corp., Omaha, NE, and Keith Mirchandani, president and CEO of Tristar Products Inc., Parsippanny, NJ. “We propose giving you 10 percent of the company, vested in equal installments over four years,” Bieler’s letter reads. 23 from Bieler that indicates she would be paid $11,650 a month during the first three months of her employment, which would be raised to $13,370 a month after that. Her lawsuit includes a confidential letter dated Oct. She claims she earned $185,000 a year in her former job and took a $45,000 a year pay cut to join Gizmo!. That experience was the source for a book, “This Business Has Legs: How I Used Infomercial Marketing to Create the $100,000,000 ThighMaster Craze,” published in 1996.īefore joining Gizmo! last year, Cartwright worked for Kent & Spiegel Direct Inc., a bankrupt DRTV marketer in Culver City, CA. She is seeking damages of at least $461,200 for lost pay and other costs associated with her employment at the company.īieler founded Gizmo! several years ago after making a name for himself by marketing the ThighMaster Exerciser in an infomercial starring celebrity Suzanne Somers. Lynn Cartwright, former president and COO of the company, leveled the accusations at Peter Bieler, CEO and owner of several companies, including Gizmo!, GZM LLC. DRTV marketing company Gizmo! LLC., Los Angeles, was sued yesterday by its former president in an amended complaint alleging fraud, breach of contract, negligent misrepresentation, wrongful discharge and unpaid wages.
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