Dr. Phil Supplement Maker Settles

LOS ANGELES—An agreement has been reached to settle litigation alleging CSA Nutraceuticals and “Dr. Phil” McGraw had falsely advertised diet products promoted by the TV psychologist. Customers who purchased the Shape Up! dietary supplements and meal replacement products prior to July 1, 2006, can receive cash refunds or replacement products as part of the $10.5 million settlement.

CSA ceased manufacturing the products in early 2004, after the Federal Trade Commission (FTC) considered looking into concerns that the products had been advertised with false claims. A year later, a class-action lawsuit was filed in Los Angeles County Superior Court; the settlement ends those allegations. McGraw will not have personal liability to pay.

Under terms of the settlement, a recovery fund will consist of $4.5 million in cash (which will also cover costs and attorneys fees) and $6.0 million in Nutrilite® Daily Multivitamin Multimineral six-month supply. Class members must file their claim by Jan. 22; details are available online at www.shapeupsettlement.com.