Facts

Plaintiff Kathleen Sonner filed a class action lawsuit against Defendants Schwabe North America, Inc. and Nature's Way Products, LLC in relation to the advertisement of defendants' Ginkgold products.

PLAINTIFF'S CONTENTIONS: Plaintiff contended defendants claimed that their Ginkgold products provided actual, meaningful and significant health benefits for memory, concentration, mental sharpness, and overall brain health. Plaintiff contended defendants' advertising claims, were false, misleading, and reasonably likely deceived the public. Plaintiff contended all available, reliable scientific evidence demonstrated that the Ginkgold products actually possessed no efficacy at all, was ineffective in the improvement of cognitive health, and provided no benefits related to increasing the memory, concentration, or healthy functioning of consumers' brains. Additionally, plaintiff contended it had been empirically and universally demonstrated that ginkgo biloba, an extract alleged to improve mental sharpness, did not in fact improve brain functioning, and was not effective in the treatment or improvement of memory problems or cognitive health. Plaintiff lastly contended as result of the express and implied misleading health benefits message conveyed by defendants' marketing campaign, defendants caused consumers to purchase a product that failed to function and perform as represented.

DEFENDANTS' CONTENTIONS: Defendants have and continue to vigorously deny all of plaintiff's claims related to the Ginkgold products, deny all wrongdoing, and believe the litigation was without merit. Defendants contended each and every cognitive benefit claim on the Ginkgold product labels is substantiated by "gold standard" scientific evidence, specifically, randomized, double blind, placebo-controlled trials conducted in human subjects that were published in peer-reviewed journals going back to the 1990s. Defendants contended the scientific evidence plaintiff cited in the litigation was both inconclusive and had no relation to the claims found on the Ginkgold product labels. However, to avoid the cost of litigation, its associated burden, and potential risks for both sides, the parties reached a stipulation of class action settlement.

Result

The settlement agreement established a settlement fund of $3,375,000, and settlement class nembers could receive $18.00 or $33.00 for each unit of Ginkgold or Ginkgold Max purchased, based on the product variation.