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A new $14 million class action settlement has been reached in the Hydroxycut false advertising MDL, taking the place of a larger settlement that was rejected last year.
On Monday, plaintiff Andrew Dremak and defendants Iovate Health Sciences Inc., Iovate Health Sciences USA Inc., and Kerr Investment Holding Corp. Company filed a joint motion requesting the court to preliminarily approve the revised Hydroxycut class action settlement and certify the class.
The proposed Hydroxycut class action settlement sets aside $14 million to reimburse Class Members. If the Hydroxycut settlement is approved, it will provide cash payments of $15 per purchase of Hydroxycut products with the potential award of up to $50 per Class Member. Alternatively, Class Members have the option of selecting reimbursement in the form of Iovate products, which do not contain any of the ingredients alleged to be ineffective and dangerous.
If there is any cash remaining in the class action settlement fund after all claims are made, it will be donated to ChangeLab Solutions pursuant to the cy pres doctrine. ChangeLab is a nonprofit organization with nationwide outreach that fights false and misleading advertising and works to educate U.S. consumers about healthy and nutritious lifestyles.
Class Members of the proposed class action settlement include all persons who purchased any Hydroxycut products in the United States between May 9, 2006 and May 1, 2009.
Hydroxycut Class Action Lawsuit History
On April 30, 2009, the U.S. Food & Drug Administration informed Iovate that ingestion of Hydroxycut weight loss products could pose a “severe potentially life-threatening hazard to some users.” Specifically, the FDA warned of the risk of “severe liver injury” associated with the consumption of Hydroxycut products and recommended that consumers discontinue their use.
The next day, Iovate announced that it was recalling the Hydroxycut products but did not offer restitution to consumers who purchased them. On May 19, 2009, Andrew Dremak filed the class action lawsuit against Iovate, accusing the manufacturer of falsely advertising its Hydroxycut products as safe and effective for weight loss. Subsequently, several similar class action lawsuits were filed against Iovate and were consolidated into multidistrict litigation (MDL) later that year.
The parties reached a $25.3 million Hydroxycut settlement agreement in November 2012. However, in November 2013, a California federal judge declined to grant final approval of the class action settlement, finding that the cy pres distribution failed to meet the standards set forth by the 9th U.S. Circuit Court of Appeals because the distribution would not provide any benefit for Class Members. In fact, the proposed cy pres distribution would have been used to satisfy personal injury claims related to the Hydroxycut products, even though consumers who filed personal injury claims are barred from participating in the Hydroxycut class action settlement. Under the terms of the revised class action settlement, none of the settlement funds will revert to Iovate.
In January, U.S. District Judge Barry T. Moskowitz refused to dismiss the class action lawsuit, but ordered the plaintiffs to file a more definite statement regarding the retailer defendants.
Further information about the Hydroxycut class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.
The plaintiffs are represented by Timothy G. Blood, Leslie E. Hurst and Thomas J. O’Reardon II of Blood Hurst & O’Reardon LLP and by Andrew S. Friedman, Elaine A. Ryan and Patricia N. Syverson of Bonnett Fairbourn Friedman & Balint PC.
The Hydroxycut False Advertising Class Action Lawsuit is In re: Hydroxycut Marketing and Sales Practices Litigation, Case No. 3:09-md-02087, in the U.S. District Court for the Southern District of California.
UPDATE: Instructions on how to file a claim for the Hydroxycut weight loss supplement class action settlement are now available! Click here or visit www.DietSupplementSettlement.com for details.
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11 thoughts onRevised $14M Hydroxycut False Ad Class Action Settlement Reached
UPDATE: Instructions on how to file a claim for the Hydroxycut weight loss supplement class action settlement are now available! Click here or visit http://www.DietSupplementSettlement.com for details.
Anyone receive payments yet, or now when checks will be out?
I received my check today in Philadelphia, PA for $65.05 for 2 bottles I claimed, and I expect to receive a bottle of Hydroxycut in the mail at some point. Good luck to all claimants! Thanks Top Class Actions!
and they are still advertising it makes you loose weight. I bought several bottles from wal mart
I know for a fact I bought at least 2 bottles and maybe more, from WalMart.
I purchased 4 bottles of this product
I was referred to this product in 2008 by a friend, I had quit smoking and I was afraid of gaining weight. I don’t of course have my receipt. I know where I purchased it, it was bought at Walmart. What do I do now?
how do you apply for this
I also bought some from Wal Mart
I purchased 4 bottles of this product
Thing is, it was “at least $25” per product before and now it’s $15.00?? Hardly seems liked the revision did much for us consumers at all, doesn’t it?