Facts

Plaintiff Environmental Research Center Inc. filed a claim against defendants Chi's Enterprise Inc., under the California Health and Safety Code Section 25249.6 regarding defendant's commercial circulation of Chi's Enterprise Inc. branded dietary supplements.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendants sold, manufactured, and distributed dietary supplements containing lead without providing health hazard warnings required under Proposition 65.

Under Proposition 65, in the state of California lead was listed as a chemical known to cause cancer, birth defects, and other reproductive harm.

DEFENDANT'S CONTENTIONS: Defendant contended it had less than 10 employees and therefore was exempt. Defendant further contended it tested specific products for lead on two different occasions by two different testing companies, and the results were less than plaintiff's alleged results from its testing company. Defendant also contended that some of the products were never sold in California.

Result

The parties entered a settlement agreement in which defendants agreed to pay plaintiff a total amount of $115,000. Defendant also agreed to sell Chi's Enterprise Inc. branded dietary supplements that were in compliance with the reformation standard for lead or provide clear and reasonable warnings. Of the settlement agreement, $89,185.90 went toward attorney fees and costs.