Triax Maker Moves to Settle Litigation for $1.4 Million 32388

Triax Maker Moves to Settle Litigation for $1.4 Million

LAKESPUR, Calif.--A class action lawsuitagainst a manufacturer marketing a tiratricol diet aid is on the brink of beingsettled for at least $1.4 million. The case's defendants--marketer CapeGirardeau, Mo.-based Syntrax Innovations Inc. and manufacturer West Lindon,Utah-based Pharmatech Laboratories Inc.--reported that continuing the litigationwould be even more expensive. However, Syntrax still denies all claims andcontentions of wrongdoing.

The plaintiffs, led by Jorge Reinoza, alleged that thecompanies' claims were false and misleading. Specifically, the plaintiffsalleged that the defendants marketed Triax as safe, fast and effective; failedto warn consumers about tiratricol's adverse events; and did not disclose thattiratricol was in fact a thyroid hormone.

The terms of the proposed settlement include a guaranteedminimum settlement value of $1.4 million, based on the $30 value of coupons tobe issued for each of the 46,648 bottles of product sold. Those who join theclaim and who bought Triax between March 10, 1999, and March 22, 2002, are alsoeligible for a coupon offering a 30-percent discount up to a total purchaseprice of $100 on other Syntrax products, which include tiratricol-free diet aidssuch as Adipokintix and MM4. Syntrax will additionally pay $155,000 for theplaintiffs lawyers' fees.

This may be the final chapter in a story that began inNovember 1999, when the Food and Drug Administration (FDA) issued a consumerwarning against Triax Metabolic Accelerator. At the time, FDA determined thisproduct was not a dietary supplement but an unapproved drug that may cause heartattacks and stroke. In response, Syntrax asserted that the product was safe andthreatened to sue FDA.

This government action did not stop the company fromselling another product known as Triax II. In mid-2001, a judge ruled that thecompany had to discontinue using the name Triax II because it implied that itcontained tiratricol. The product, which contained coleus forskoli, wasrenamed XXX.

Patrick Keegan of Krause & Kalfayan, the lead counselfor the plaintiffs in the current settlement, said that the final review of thiscase will be in June. "When the settlement is finally approved, it willprohibit Syntrax from selling any products with [tiratricol]."

Syntrax had no comment about the pending settlement.