Hydroxycut firm to pay $1.5m to settle false advertising and Prop 65 case

16-Jan-2012 - Last updated on 16-Jan-2012 at 13:57 GMT

The firm at the center of the 2009 Hydroxycut recall has been told to pay $1.5m to settle 10 California district attorneys' complaints over deceptive advertising of its dietary supplements and Proposition 65 violations.

Canadian company Iovate Health Systems and its U.S. affiliate Iovate Health Systems USA was sued by 10 district attorneys that claimed they made false and misleading statements about products including Accelis, nanoSLIM, Cold MD, Germ MD, Allergy MD, and EZ-Swallow, said Courthouse News.

Iovate was also accused of violating Californian statute Proposition 65 because samples of its flu remedy product Cold MD contained more than the permitted 0.5 micrograms of lead per daily dose but did not feature the required warning labels.

Additionally, the lawsuit alleged Cold MD – which Iovate stopped selling in 2008 - was an unapproved new drug.

$1.2m in civil penalties and $300,000 in investigative costs

Iovate, which did not admit fault or liability, but agreed to abide by court orders to prevent unfair, dangerous, or deceptive business practices, will pay $1.2m in civil penalties and $300,000 in investigative costs.

The suit was brought by the district attorneys of Santa Clara, Santa Cruz, Napa, Alameda, Marin, Monterey, Orange, Shasta, Solano, and Sonoma counties.

“The Sonoma County District Attorney’s Office is committed to working with prosecutors throughout California to protect our citizens from deceptive advertising and potentially harmful products,” said Sonoma County district attorney Jill Ravitch.

The settlement was signed in Napa County Superior Court.