Pomegranate Extract Subject of Five Continent, Geni Battle

SANTA ANA, Calif.—On Oct. 17, 2006, Five Continent Enterprises filed a lawsuit against Geni Herbs, Verdure Sciences Inc. and Soft Gel Technology Inc. alleging breach of confidential agreement, fraud and false advertising.

In the lawsuit, Irvine, Calif.-based Five Continent alleges it was contacted in March 2004 by a representative from Geni Herbs claiming to be a potential customer for its pomegranate extract ingredient. The lawsuit adds after executing a non-disclosure agreement, Five Continent released confidential information about the ingredient. Shortly thereafter, Geni Herbs started marketing its own ingredient, PomElla®.

Five Continent’s suit further charges Geni Herbs with making fraudulent and misleading statements regarding PomElla’s production methodology. The company is seeking a preliminary and permanent injunction against the defendants from claiming PomElla is a patented product or exclusive to the firms, cancellation of product trademark and compensatory damages.

Geni Herbs, a division of Verdure Sciences based in Noblesville, Ind., released a statement revealing it plans to continue to defend the merits of POMELLA® extract. The company noted: “Due to the popularity of pomegranate, it is anticipated that some companies may attempt to market commodity pomegranate ingredients and may attempt to gain market share through unscrupulous means.Verdure Sciences anticipates nuisance claims and from desperate competitors with undistinguished products, and will view these lawsuits as confirmation of the pre-eminent position of PomElla extract in the market.”