Metabolife Litigants Agree to Settle Ephedra Lawsuits

By William Murphy

Published on September 27, 2006

The amount will settle 257 separate lawsuits brought by plaintiffs who claimed that Metabolife's diet supplement Metabolife 356 caused physical injury and death. The settlement comes after nearly a year of legal squabbling. Ninety additional lawsuits covered by insurance are still in mediation.

The money for the proposed settlement will be provided by Metabolife, retailers that sold the ephedra-based diet pills, and Metabolife's three owners. The decision to settle comes a week after two judges on opposite sides of the country threatened court action if the parties could not reach an agreement by early October.

U.S. Bankruptcy Judge John Hargrove in San Diego set a hearing date of October 4 to decide if the case should be changed from a Chapter 11 to a Chapter 7 bankruptcy. U.S. District Judge Jed Rakoff in New York set October 5 as the date to decide if a stay on lawsuits against retailers and Metabolife's owners should be lifted.

The litigants have asked Hargrove for 30 days to complete the settlement.

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