Marc David
Posts: 9184
Joined: 4/6/2003
From: Bay Area -CA
Status: offline
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In a California class action lawsuit that began March 6, the San Diego Superior Court found Manasquan, N.J.-based Cytodyne Technologies misled consumers with false or misleading advertising for its Xenadrine RFA-1 ephedra-based weight-loss product. In a ruling announced May 30, the court also found the company had misrepresented study results in some circumstances, and that some before-and-after testimonials were false and misleading. Cytodyne has been ordered to pay $12.5 million in restitution to consumers who purchased the product during the class period (1997 to 2001), in addition to attorney' s fees and injunctive relief. According to Cytodyne, which plans to appeal, this is a tentative ruling. " We continue to firmly believe that our advertising claims are truthful and accurate in all respects," Cytodyne stated in a May 30 press release. " This ruling is a severe and inappropriate blow to the First Amendment rights of all companies that advertise their products in the State of California." The company added the state' s false advertising laws are lax, allowing any business that advertises to be sued. " Indeed, claims found to be misleading by this California Superior Court in its tentative decision had already been reviewed by a U.S. District Court and found to be substantiated," Cytodyne reported. " Timothy Muris [the current chairman of the Federal Trade Commission] has testified favorably regarding our advertisements in the past, demonstrating the credibility of the advertisements."
< Message edited by mda1125 -- 6/12/2003 8:31:31 AM >
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