LoveSac Lawsuit Settled Out of Court

LoveSac Lawsuit Settled Out of Court

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SALT LAKE CITY (AP) -- A reality game-show winner and foam furniture maker has settled out-of-court with a former employee who claims he was targeted for not belonging to the LDS church.

Daniel Alix filed a lawsuit in February against LoveSac Corp., which makes foam-based, oversized beanbag-like furniture. Alix claimed the company discriminated against him and failed to follow federal guidelines on health coverage notification.

The distribution manager was fired in June for allegedly filling out a requisition form incorrectly. He alleged the company never told him about his right to health coverage after the firing.

Alix also claimed LoveSac CEO Shawn Nelson, a recent winner of $1 million on the Fox reality show "The Rebel Billionaire," singled him out for not being a member of The Church of Jesus Christ of Latter-day Saints.

The lawsuit said Nelson humiliated Alix in front of co-workers for drinking on a company trip. Mormon church members are encouraged to abstain from drinking alcohol.

The lawsuit was officially dismissed Wednesday. Terms of the settlement were confidential.

"The matter's been resolved to everyone's satisfaction," said Carolyn Cox, LoveSac's lawyer.

(Copyright 2005 by The Associated Press. All Rights Reserved.)

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