Facts

The Federal Trade Commission filed a complaint against Keyview Labs Inc., Brain Research Labs LLC, 20/20 Brain Power Partners LLC, 20/20 Brain Power Founders LLC, MedHealth Direct Inc., George Reynolds aka Josh Reynolds, and John Arnold in connection with a dietary supplement called Procera AVH.

George Reynolds is the founder of Brain Research Labs and its chief science officer. John Arnold is the president of MedHealth and its sole officer. Both Reynolds and Arnold are directors and co-managing members of 20/20 Brain Power Founders.

PLAINTIFF'S CONTENTIONS:
The FTC brought an action under the Federal Trade Commission Act relating to the labeling, advertising, marketing, and sale of the dietary supplement Procera AVH, which allegedly falsely claimed to improve memory, focus, mental clarity and cognition.

Result

Keyview Labs, Brain Research Labs, 20/20 Brain Power Partners, 20/20 Brain Power Founders, MedHealth Direct, George Reynolds, and John Reynolds, agreed to pay the FTC $1 million, and pay an additional $400,000 to local law enforcement in Santa Cruz. The remainder of the $152 million judgment, which includes $91 million from Brain Research Labs, $61 million from Keyview Labs is suspended based upon defendants' inability to pay, subject to the truthfulness of their sworn financial attestations. Defendants are also barred from making similar deceptive claims and from misrepresenting any scientific study.