Facts

On June 21, 2012, plaintiffs Govinda Hogan, Catherine Giasone, Heather Bodor, James Manning, Adrian Haro, Jeffrey Sherrill, Johnnie Pacheco and Isabella Janovick, on behalf of themselves and all others similarly situated filed their complaint against USPLabs LLC.

The action alleged violation of California's unfair competition law, California Business and Professions Code section 17200 et seq. (UCL); violation of the False Advertising Act, California Business and Professions Code section 17500 et seq. (FAL); violation of the Consumer Legal Remedies Act, California Civil Code section 1750 (CLRA); violation of the Texas Deceptive Trade Practices Act, Texas Business and Commerce Code section 17.41 et seq. (DTPA); violation of the Magnuson Moss Warranty Act; and unjust enrichment.

Specifically, the action alleged that defendant manufacturers, markets, and sells Jack3d and OxyElite Pro (hereafter jointly referred to as "the USPLabs products) as university studied supplements that provide safe and legal benefits to consumers.

PLAINTIFF'S CONTENTIONS:
Plaintiffs claimed that defendant failed to warn consumers that the USPLabs products contain Dimethylamylamine, also known as DMAA, which plaintiffs claim is known to cause dangerous health effects and that such statements violate California consumer protection laws, Texas consumer law and the other acts and laws described above. The action sought, among other things, includes injunctive relief, compensatory damages, restitution, and punitive damages.

DEFENDANT'S CONTENTIONS:
Defendant denied liability.

Result

The case settled for $2 million. The settlement agreement provided that settlement class members who submitted a claim with purchase receipts documenting proof of purchase would have been refunded the full amount documented, with no limit on the number of bottles of the USPLabs products refunded. Settlement class members who submitted a claim without purchase receipts would have been entitled to $30 per bottle of OxyElite Pro purchased and $20 per bottle of Jack3d purchased, to a maximum refund of $150. The aggregate value of valid claims submitted by settlement class members, however, was less than the amount remaining in the common fund even after payment of the maximum requested aggregate fees, costs and expenses. Due to that fact, per the terms of the settlement agreement, settlement class members received a pro rata addition to the amounts to be refunded to them, up to the amount of $300 per settlement class member. Even after a pro rata addition to the amounts refunded to settlement class members, however, the aggregate value of valid claims was less than the amount remaining in the common fund after payment of the maximum requested aggregate fees, costs and expenses. Per the settlement agreement, the unclaimed balance of the common fund was distributed by cy pres to the Consumer Federation of America as mutually agreed on by the parties, and approved by the court.