Tishcon Files $50 Million Suit Against Twinlab

WESTBURY, N.Y.--Tishcon Corp., based here, filed a $50 million lawsuit against Hauppage, N.Y.-based Twin Laboratories Inc. Tishcon charged Twinlab, in a complaint filed by New York-based Aufrichtig, Stein & Aufrichtig, P.C., with unfair competition due to false and misleading claims for its Twinsorb CoQ10 product.

Tishcon (www.tishcon.com) sells a CoQ10 soft gelatin product under the registered name, Q-Gel; Twinlab (www.twinlab.com) sells a similar product named Twinsorb (and another CoQ10 product called Changes). According to the complaint, Twinlab began making false, misleading and disparaging claims when comparing its product with Tishcon's. These claims appear on Twinlab's Web site, product labeling and print ads. The complaint lists some of these claims, including Twinlab stating Twinsorb ". is the ONLY softgel in the U.S. that can guarantee [nine-fold greater] absorption levels."

Twinlab also stated in its claims that Twinsorb is based on a patented formula, which the complaint stated it is not. In addition, Tishcon alleges that Twinlab does not label or advertise that some or all of Twinlab's products are imported from Australia.

The complaint alleges that these false advertising practices and statements ".were intended to harm Tishcon's interest by seeking to persuade Tishcon's customers and potential customers not to buy the [Q-Gel]."

Tishcon stated in the complaint that it has been damaged by these actions, and that it has lost sales, given price concessions to customers and funded studies to compare Q-Gel with Twinsorb to investigate Twinlab's allegations. As a result, it is asking for compensatory damages in the amount of $50 million. Tishcon is also asking that the company destroy false or misleading labels, advertising and other promotional materials.

"Twinlab unfairly competed with Tishcon by making improper claims about efficacy and patenting," stated Peter Aufrichtig, a lawyer at the law firm representing Tishcon. "Tishcon takes these offenses very seriously. In a marketplace, people compete fairly. When that doesn't happen, you have to enforce your rights to get onto a leveled playing field." Twinlab was served the complaint a week ago and has 20 days to respond.

When reached for comment, Twin Labs stated that it does not usually comment on pending litigation; however, the company's chief information officer Bill Rizzardi did say that Twin Labs believes that this lawsuit is without merit.