N.V.E. Settles with N.J.

NEWARK, N.J.--N.V.E. Pharmaceuticals and its founder, Robert Occhifinto, have settled a deceptive claims lawsuit filed by the State of New Jersey, agreeing to pay a total of $260,000 and to adhere to certain future marketing and business guidelines. Filed in 2004, the complaint alleged that Newton-based N.V.E. violated New Jerseys Consumer Fraud Act (CFA) through advertisements that exaggerated the benefits and minimized the risks of its Stacker-2 and other ephedra-based dietary supplements. The defendants entered into the settlement without any admission of liability or any violation of the CFA.

Under terms of the settlement, Occhifinto will pay the State $60,000 while his company will make four $50,000 payments. Although N.V.E. filed for Chapter 11 bankruptcy protection on Aug. 10, 2005, the bankruptcy court approved the states settlement with N.V.E on Aug. 9, 2006, protecting the $200,000 payment from bankruptcy proceedings.

In addition, the defendants agreed to abide by certain restrictions on its future business practices that would violate the CFA, including any misrepresentations of the amount or swiftness of weight loss attributed to its diet product(s), endorsements that masquerade atypical results as typical, and making claims of "clinically proven" results that are not, in fact, proved by scientific study. The company must also cooperate in the state's monitoring of its advertising, claims and all documented evidence relative to its products.

"This case makes clear that there are no quick fixes when it comes to weight loss and if it sounds too good to be true, it probably is," said Stephen B. Nolan, New Jersey's acting director of consumer affairs. "This company exploited human nature to make money."

This is the states third settlement of a lawsuit against a New Jersey manufacturer or distributor of ephedra-based dietary supplements for alleged violations of the CFA. The State previously settled with Cytodyne Technologies (a.k.a. Nutraquest) in April 2005 and with Goen Technologies in August 2005.