Plaintiff investor sues health-and-wellness company for securities violations

Phoenician Equity Income Funds, LLC has taken a significant legal step in its ongoing dispute with Dreambrands, Inc., a health-and-wellness supplement company. On December 10, 2025, Phoenician filed a complaint in the Arizona Court of Appeals against Dreambrands, seeking pre-litigation discovery under Rule 27 of the Arizona Rules of Civil Procedure. This move follows an investment saga that began in early 2008 when Phoenician invested $783,000 into Dreambrands with the promise of capital return and investment gains.

The roots of this legal confrontation trace back to 2024 when Dreambrands reported a positive net income and proposed to repurchase shares from Phoenician. However, Phoenician found the repurchase offer unsatisfactory as it would result in a loss of their initial investment. Despite the reported profits, Dreambrands had not returned any portion of Phoenician’s investment nor paid any interest or dividends on the original amount. Seeking clarity on these financial discrepancies, Phoenician requested access to specific corporate records which were only partially provided by Dreambrands. Consequently, Phoenician filed for pre-litigation discovery to preserve evidence critical for potential future litigation.

Phoenician’s verified petition expressed expectations of becoming involved in various legal actions related to its relationship with Dreambrands. The petition outlined potential derivative actions involving other investors who might feel disenfranchised due to alleged illegal securities sales by Dreambrands without proper licensing in Arizona. To substantiate these claims and protect its interests, Phoenician sought comprehensive disclosure including financial statements and shareholder agreements to prevent “corporate malfeasance” and ensure evidence preservation.

Dreambrands opposed this petition arguing that existing statutory provisions under A.R.S. § 10-1604 could address Phoenician’s requests without invoking Rule 27 relief. However, during court proceedings, it was acknowledged that these statutory measures were insufficient for the scope of discovery needed by Phoenician. The Superior Court ultimately sided with Phoenician affirming that preserving such evidence was necessary to prevent a failure or delay of justice.

In terms of judicial relief, Phoenician is seeking extensive documentation through subpoenas as outlined in their verified petition. They aim to secure evidence regarding financial transactions and internal communications within Dreambrands that could support future claims or defenses against anticipated lawsuits.

The case is being handled by prominent law firms: Greenberg Traurig LLP represents Phoenician Equity Income Funds while Quarles & Brady LLP defends Dreambrands Inc. The appeal was presided over by Judges David B. Gass, Michael J. Brown, and Andrew J. Becke under Case ID No. CV2024-024285.