San Diego Superior Court Judge Ronal Styn found Cytodyne Technologies, Inc., maker of the dietary supplement Xenadrine RFA-1, liable in a class-action consumer fraud lawsuit and ordered the company to pay $12.5 million for making exaggerated and false claims about Xenadrine’s safety and effectiveness.
“The decision is a victory for the consumers in California, and by implication throughout the country,” said Park’s attorney, Todd Macaluso. “It demonstrates that companies cannot exaggerate or make falsely deceptive claims in advertising practices that misled consumers.”
Cytodyne denied the charges and said it would appeal the ruling.
Cytodyne said the ruling is “a severe and inappropriate blow” to the rights of companies to advertise in California. “We believe California’s false advertising laws are so lax that they literally permit any business that advertises a product to be sued – even when, as here, the plaintiff’s lawyer doesn’t have an injured or deceived client.”.
(via The Associated Press)
Comments on this entry are closed.