Calif. Settles With Xenadrine Maker for $1M

Updated:2006-06-16 00:08:49
Calif. Settles With Xenadrine Maker for $1M
AP
SACRAMENTO, Calif. (AP) - California and 10 local prosecutors have reached a $1 million settlement with diet-pill maker Nutraquest Inc., which was accused of using deceptive techniques to sell weight-loss products that contained ephedra.


The Food and Drug Administration banned ephedra in April 2004 after it was linked to dozens of deaths and thousands of reports of health problems such as heart attack or increased blood pressure.


A federal judge subsequently lifted the FDA ban for supplements containing smaller doses, but the FDA determined the supplement presents an unreasonable risk of illness or injury at any dose and is appealing the judge's ruling.


Nutraquest Inc. was accused in a lawsuit filed by the California prosecutors of making numerous deceptive advertising claims about its best-selling diet pill, Xenadrine RFA-1.


Among the claims, Nutraquest said the drug was "clinically proven to increase fat-loss by an unprecedented 1,700 percent," and is "the only diet supplement in the world clinically proven to increase fat loss by an extraordinary 38.6 times more than diet and exercise alone."


Nutraquest filed for bankruptcy protection in 2003 after a flood of lawsuits claiming the ephedra in Xenadrine caused medical problems, including at least one death.


As part of the settlement announced Thursday, Nutraquest president Robert Chinery is required to pay $600,000 in civil penalties and $400,000 in costs.


The prosecutors are Attorney General Bill Lockyer, the city attorney of San Diego and district attorneys in Alameda, Kern, Marin, Monterey, Napa, San Benito, San Francisco, Solano and Sonoma counties.


Some people who bought the diet pills also will be eligible for restitution as part of the bankruptcy proceedings.


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06/16/06 00:06 EDT