Metabolife Seeks Single Class Action Settlement

SAN DIEGO--Metabolife International filed a proposed settlement of class action in U.S. District Court in New York, asking the court to approve a multimillion dollar deal to settle hundreds of pending lawsuits regarding its sale of ephedra-based dietary supplements, including Metabolife 356. Approximately 170 personal injury lawsuits filed against Metabolife in federal court have been consolidated in New York, while another 130 are pending in state courts across the country; Metabolife has resolved more than 400 claims since 1999, most of which were covered by insurance.

The plan proposed by Metabolife would provide up to $1.05 million to each consumer represented in the pending federal and state lawsuits, although the consumers could also opt out and pursue separate court cases. The settlement would also cover future claims by injured consumers who have not filed lawsuits. A preliminary hearing on the proposed settlement is scheduled to be held Jan. 14.

According to court documents, Metabolife is proposing the settlement to avoid going out of business under the financial burden of the litigation. "While Metabolife is confident it can expose the deficiencies of the cases, the cost of doing so in the hundreds of claims currently pending throughout the country threatens the very existence of Metabolife," the court filing read.

A copy of the court filing is available on the Metabolife Web site (www.metabolife.com).