January 2003

Company held in contempt for false claims

MANASQUAN, N.J. (PRNewswire) – The U.S. District Court for the District of New Jersey has found that Golden, Colorado-based supplement company EAS had violated the terms of a preliminary injunction preventing it from disseminating false and misleading advertisements for EAS's BetaLean HP. The Court's finding encompassed what it termed the company's "literally false" claims about EAS's own product, as well as false and misleading performance comparison claims made by EAS against Cytodyne Technologies' weight loss product, Xenadrine RFA-1.

In its decision the District Court ordered that EAS be held in contempt and pay the legal fees and costs of Cytodyne Technologies, Inc., based in Manasquan, New Jersey. In addition, EAS must notify all of its wholesalers, distributors and retailers of the false advertising claims in a timely fashion, as well as post notice of the court order on its Web site.

The contempt finding prohibits EAS from, among other things, claiming that its proprietary formula "enhance[d] the overall thermogenic effect" of BetaLean HP. The U.S. District Court found that the findings of EAS's own study "virtually demolished" any product performance claims for BetaLean HP.

Source: Cytodyne Technologies, Inc.

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