Court Levies $40 Million Judgement Over Deceptive Weight-Loss Claims

An Atlanta federal judge found several individuals and their two firms in contempt for violating court orders over the sale of deceptively marketed weight-loss supplements, imposing a judgement of more than $40 million.

In a case brought by the Federal Trade Commission, the district court said the defendants deceived customers by claiming the products would burn fat, curb appetite and guarantee weight loss. The defendants’ firms were known as Hi-Tech Pharmaceuticals Inc. and National Urological Group Inc.

The case began in 2004 when the FTC filed deceptive marketing claims, resulting in a 2008 court order that barred the deceptive marketing, alongside a judgement of more than $15 million in refunds to consumers. The FTC can also issue refunds using the $40 million in the latest judgement.