SFMS Attorney Assists In Achieving Settlement In California Action

February 5th, 2007

Scott Shepherd of Shepherd Finkelman Miller & Shah, LLC, was Co-Lead Counsel in a recent settlement involving "Dr. Phil" and CSA Nutraceuticals, GP, LLC. The Shape Up! products involved in the lawsuit, which are no longer distributed or sold, include the Shape Up! Apple, Pear and Intensifier supplements and the Shape Up! meal replacement products, including bars, shakes and ready-to-drink mixes.

Plaintiffs alleged that the defendants made material misrepresentations and false claims based on certain marketing, promotional and advertising materials concerning Shape Up! products. The defendants' position is that the Shape Up! products were accurately described, that defendants acted properly, and that McGraw did not receive any money from the sale of the products, as his endorsement fee was paid directly to charity.

The court did not reach any decision regarding the case. Under the terms of the settlement agreement, a settlement fluid recovery fund will be established consisting of $6.0 million of Nutrilite® Daily Multivitamin Multimineral, 6-month supply, and $4.5 million in cash, out of which all costs and attorneys' fees will be paid. All of the contents of the fund will be distributed. McGraw will have no personal obligation to contribute to the Fund.

The agreement provides benefits to people who can establish, by affidavit or proof of purchase, that they bought Shape Up! supplements on or before July 1, 2006. The agreement will also provide benefits to certain charitable organizations. These charities are to be selected by the parties and approved by the court.

For any comments or questions concerning this article, please contact Scott R. Shepherd at 610-891-9880 or by e-mail at [email protected].