New Jersey Sues NVE for Consumer Fraud
October 11, 2004
New Jersey Sues NVE for Consumer Fraud
NEWARK, N.J.New JerseysOffice of the Attorney General and the states Division of Consumer Affairssued Newton, N.J.-based NVE Pharmaceuticals and its president, RobertOcchifinto, for false and misleading advertising inciting consumers to purchaseits dietary supplements. The seven-count complaint was filed Aug. 19 andannounced in late August by the consumer affairs division(www.state.nj.us/lps/ca/home.htm).
The primary target of the lawsuit is NVEs ephedra andephedra-free weight loss product, Stacker 2, though the counts also address NVEsenergy boosters, allegedly sold as street drug alternatives. New Jerseyofficials allege NVE advertised its products as safe and effective for weightloss, despite a lack of scientific research on their effects and receipt ofconsumer complaints about side effects including high blood pressure, rapidheartbeat and seizures. The state is seeking civil penalties, restitution foraffected consumers, and a permanent injunction against NVE enjoining the companyfrom making unsubstantiated or false claims about the safety or efficacy of anyof its dietary supplements.
The defendants made unsupported claims about their productsability to burn fat and boost energy, and they failed to provide consumers withmeaningful warnings about the dangers of using products containing ephedra,said New Jersey Attorney General Peter Harvey. In addition, Reni Erdos, directorof the N.J. Division of Consumer Affairs, said the company continued toadvertise its products as safe, even after receiving consumer complaints. Inessence, they recklessly risked the health and lives of consumers to make abuck, which is shameful, she said.
A call to NVEs attorney, Terry Gaffney, had not yet beenreturned at press time.
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