For release on January 5, 2012 CONTACT:
Yen Dang, Deputy District Attorney
Consumer Protection Unit
(408) 792-2818 DIET SUPPLEMENT DISTRIBUTOR TO PAY $1.5 MILLION FOR FALSE ADVERTISING AND FAILURE TO DISCLOSE LEAD CONTENT District Attorney Jeff Rosen announced today that dietary supplement distributors Iovate Health Sciences, Inc., a Canadian corporation, and its American affiliate, Iovate Health Sciences USA, Inc., have agreed to pay a total of $1.5 million in civil penalties and costs in the settlement of a lawsuit brought by the district attorney’s offices in Santa Clara, Santa Cruz, Napa, Alameda, Marin, Monterey, Orange, Shasta, Solano and Sonoma counties. The settlement pertains to Iovate products marketed and sold throughout the state of California, and requires the Iovate companies to pay $1,200,000 in civil penalties that will provide support for the future enforcement of California consumer protection laws. The agreement also provides for $300,000 in investigative costs. It is the second largest multi-county dietary supplement settlement in California history. The district attorneys' lawsuit accused Iovate of making false and misleading representations to sell some of its products, including Accelis, nanoSLIM, Cold MD, Germ MD, EZ-Swallow Rapid-Tabs, Germ MD Effervescent Tablets, Allergy MD, and Allergy MD Rapid-Tabs. The investigation by the district attorney’s offices also revealed that Iovate was marketing and selling a product containing lead in violation of California's Proposition 65, which requires warning labels on all products containing more than one-half of a microgram of lead. Laboratory tests revealed that certain lots of Iovate’s Cold MD product contained significantly more than one-half microgram of lead in a single dose of the product. Iovate stopped selling Cold MD in 2008. The Iovate companies did not admit fault or liability, but have agreed to abide by comprehensive court orders to prevent any future unfair, dangerous, or deceptive business practices. ###
Yen Dang, Deputy District Attorney
Consumer Protection Unit
(408) 792-2818 DIET SUPPLEMENT DISTRIBUTOR TO PAY $1.5 MILLION FOR FALSE ADVERTISING AND FAILURE TO DISCLOSE LEAD CONTENT District Attorney Jeff Rosen announced today that dietary supplement distributors Iovate Health Sciences, Inc., a Canadian corporation, and its American affiliate, Iovate Health Sciences USA, Inc., have agreed to pay a total of $1.5 million in civil penalties and costs in the settlement of a lawsuit brought by the district attorney’s offices in Santa Clara, Santa Cruz, Napa, Alameda, Marin, Monterey, Orange, Shasta, Solano and Sonoma counties. The settlement pertains to Iovate products marketed and sold throughout the state of California, and requires the Iovate companies to pay $1,200,000 in civil penalties that will provide support for the future enforcement of California consumer protection laws. The agreement also provides for $300,000 in investigative costs. It is the second largest multi-county dietary supplement settlement in California history. The district attorneys' lawsuit accused Iovate of making false and misleading representations to sell some of its products, including Accelis, nanoSLIM, Cold MD, Germ MD, EZ-Swallow Rapid-Tabs, Germ MD Effervescent Tablets, Allergy MD, and Allergy MD Rapid-Tabs. The investigation by the district attorney’s offices also revealed that Iovate was marketing and selling a product containing lead in violation of California's Proposition 65, which requires warning labels on all products containing more than one-half of a microgram of lead. Laboratory tests revealed that certain lots of Iovate’s Cold MD product contained significantly more than one-half microgram of lead in a single dose of the product. Iovate stopped selling Cold MD in 2008. The Iovate companies did not admit fault or liability, but have agreed to abide by comprehensive court orders to prevent any future unfair, dangerous, or deceptive business practices. ###