Two online friends, Cory Gregory and Brad Pyatt, were both interested in bodybuilding and often talked about how supplements can play a big part in that. In 2006, they began working on a formula which would contain all the ingredients that athletes and bodybuilders would want. MusclePharm was incorporated in 2006. The company went public on the OTCQB soon afterward, under the ticker symbol: MSLP.
The company is an online retailer which offers nutritional supplements and athletic gear. MusclePharm uses social media sites to promote their products, including a very active Twitter account, which has more than 200,000 followers. Arnold Schwarzenegger is one of the biggest shareholders in the company and lends his image to one product line, simply named “Arnold”.
The company has its own research and development team to create new products while sponsoring a host of athletes to promote current ones.
By the end of 2014, the company reported net revenue earnings of $67 million.
In September of 2015, MusclePharm was charged by the Securities and Exchange Commission with infractions related to a number of accounting and disclosure violations. The investigation found that the company failed to report, or grossly misrepresented, approximately $500,000 in benefits paid to three current or former executives and chairmen. The SEC also discovered that MusclePharm issued stock without a registration statement when it entered into numerous transactions with third parties that agreed in exchange for company shares to pay cash to MusclePharm vendors. MusclePharm owed vendors approximately $1.1 million in outstanding invoices and was short on funds to pay them. Founder and CEO Brad Pyatt stepped down and resigned as a result.
The company was also sued in 2016 by Hi-Tech Pharmaceuticals, who stated that the company was inflating the actual level of protein found in their “Arnold” Iron Mass products.
MusclePharm has headquarters in Denver, Colorado. The company has a B+ rating with the Better Business Bureau and ratings of 9.1 out of a possible 10 on sites such as Bodybuilding.com.