Tauler Smith prevails on Summary Judgment against IronMag Labs and Robert DiMaggio

Robert DiMaggio permanently enjoined from selling SARMs

In an eight page Order on Summary Judgment, Judge Manuel Real of the United States District Court for the Central District of California has ruled in favor of firm client Nutrition Distribution, LLC, ordering that Defendants IronMagLabs and Robert DiMaggio be permanently enjoined from selling SARMs.

“[I]t is indisputable that Defendants have made false statements regarding whether products containing Ostarine have side effects” read the Order, because “DiMaggio himself admitted at his deposition that Ostarine does have side effects, and the FDA has identified Ostarine and other SARMs as potentially dangerous to public health and safety.” The Court further found that “common sense requires a finding that statements denying the existence of negative health effects in a fitness product have a tendency to deceive a substantial segment of interested consumers.”

“We are very pleased that the Court has taken a firm stance on the legality of SARMs” said Robert Tauler, counsel of record for Nutrition Distribution, “the Court has put an end to DiMaggio’s sale of SARMs and has effectively ruled that the sale of such products is illegal.”

The Court’s Order ended by clearly stating “Defendants are permanently enjoined from

falsely advertising OSTA RX, Super DMZ 4.0, and other supplements containing Ostarine or other SARMs.”

“We look forward to the next phase, which will include briefing on Plaintiff obtaining an award of attorney’s fees,” said Tauler. “We will also be conducting more discovery into other companies DiMaggio sells SARMs to enforce this Order,” adding “it is important that companies putting profits over consumer safety pay the price.”

Judge: Lawsuits will proceed against retailers accused of selling illicit Viagra pills

SANTA MONICA, CALIF., USA, October 13, 2018 /EINPresswire.com/ — A superior court judge has allowed a lawsuit against a group of Santa Monica convenience stores allegedly selling supplements laced with prescription and unapproved drugs to proceed by denying a Chevron gas station’s defense motion to dismiss the case.

The ruling by Santa Monica Superior Court Judge Gerald Rosenberg on Oct. 20 means the owners have 20 days to respond to lawsuits accusing them of engaging in unfair competition and false advertising by selling falsely-labeled “all natural” and “safe” male enhancement pills. The Rhino-brand ingredient labels do not list their inclusion of sildenafil – the active ingredient in Viagra.

The local lawsuits only address the stores’ civil violations, though the sale of prescription drugs by anyone other than a licensed pharmacist is prohibited under state and federal regulatory laws.

“The judge’s decision should make it crystal clear that retailers selling this potentially deadly drug face civil liability for putting people’s lives in danger,” said Robert Tauler, a principal at Tauler Smith LLP, in Los Angeles and a nationally-recognized expert in adulterated health supplements and false advertising law.

Using Viagra without a doctor’s supervision can result in serious penile injuries (blood clots and amputation, for instance,) heart attacks, stroke and vision problems. Men have died after taking Viagra-laced “all natural” erectile dysfunction pills like those identified in the suit.

Tauler represents Houston-based Outlaw Laboratory LP, which makes competing natural products that meet strict FDA dietary supplement regulations. Federal law allows competitors to sue retailers for false advertising if products contain secret ingredients. The products named in the lawsuit do not disclose the presence of hidden drugs such as sildenafil, tadalafil and dapoxetine on their labels.

C. Kerry Fields, University of Southern California business ethics and product liability expert, told the Santa Monica Mirror in June that businesses selling products containing secret ingredients put themselves in serious legal peril. “There may be a good margin selling those products but it’s not worth the risk because they are representing to the public that their goods are safe… Consumers might sue them as well…,” Fields told the Mirror.

 

Read the full press release on EINNews.com.

Ruling favors Nutrition Distribution in false advertising claim against Pep Research

In the underlying case, which began in 2016, Nutrition Distribution sued its rival under the Lanham Act and later added the claim the company was in the violation of the Racketeer Influenced and Corrupt Organization (RICO) Act.

A federal magistrate judge has favored the plaintiff in a discovery dispute over false advertising claims involving two nutrition supplement companies.

Visit Northern California Record for the full article.

IronMag Labs Dismissal Reversed by Ninth Circuit, Allowing Ostarine Case to Proceed

A federal appeals court ruled a judge improperly dismissed a lawsuit against seller of Ostarine sports supplements

 

A 9th U.S. Circuit Court of Appeals panel handed client Nutrition Distribution LLC a victory today in its ongoing battle to prevent IronMag Labs LLC from its false advertising of its sports supplements containing Ostarine, a substance developed by pharma giant GTx to treat degenerative muscle diseases and cancers, announced Robert Tauler of Tauler Smith LLP in Los Angeles. The lawsuit alleges that IronMag Labs sells Ostarine without a prescription and markets Ostarine as a bodybuilding supplement, even though Ostarine is still in clinical trials. IronMag does not disclose to its customers that Ostarine has well known side effects, according to the lawsuit.

In 2016, U.S. District Judge Manuel Real dismissed the lawsuit under a legal theory called primary jurisdiction, holding that because the FDA had not yet determined if Ostarine was a new drug requiring further study and testing before it could be distributed, the court could not interfere by making its own determination.

The 9th Circuit reversed and remanded, ruling that the lower court had abused its discretion and misapplied the law. “We are pleased that the Ninth Circuit recognized the Plaintiff’s right to move forward with its claims.” explained Tauler.

Nutrition Distribution‘s position was bolstered by an amicus curiae brief filed by GTx Inc., which said that Ostarine is being investigated as a new drug, is the subject of clinical trials, and, as such, cannot be sold in supplements.

“We are pleased that the Ninth Circuit acknowledged GTx’s position that since Ostarine is the subject of publicly disclosed clinical trials, it cannot subsequently be marketed as a dietary supplement. It is important that the creators of drugs like Ostarine are able to protect their inventions and the integrity of the clinical trial process to ensure the safety of products,” Tauler said.

False advertising lawsuit wrongly dismissed; 9th U.S. Circuit panel rules in favor of Tauler Smith client

A 9th U.S. Circuit Court of Appeals panel handed client Nutrition Distribution LLC a major victory in its ongoing battle to prevent IronMag Labs LLC from its false advertising of its sports supplements containing Ostarine, a substance developed by pharma giant GTx to treat degenerative muscle diseases and cancers, announced Robert Tauler of Tauler Smith LLP in Los Angeles. The lawsuit alleges that IronMag Labs sells Ostarine without a prescription and markets Ostarine as a bodybuilding supplement, even though Ostarine is still in clinical trials. IronMag does not disclose to its customers that Ostarine has well known side effects.

Nutrition Distribution’s position was bolstered by an amicus curiae brief filed by GTx Inc., which said that Ostarine is being investigated as a new drug, is the subject of clinical trials, and, as such, cannot be sold in supplements.

Tauler Smith’s Lisa Zepeda made the successful appeal, arguing in part that “the FDA has made a clear statement that Defendants are selling their products illegally. Thus, even according to the district court’s own reasoning, Nutrition Distribution’s claims are not precluded.”

“We are pleased that the Ninth Circuit acknowledged GTx’s position that since Ostarine is the subject of publicly disclosed clinical trials, it cannot subsequently be marketed as a dietary supplement. It is important that the creators of drugs like Ostarine are able to protect their inventions and the integrity of the clinical trial process to ensure the safety of products,” Tauler said.

The decision was covered by the industry’s leading news source, Natural Products Insider.

  • This story spells out the issues involved in the lawsuit: https://tinyurl.com/FDAs-role
  • Coverage of the 9th Circuit judges’ decision to dismiss, with prejudice, a lower court’s ruling as “an abuse of discretion … due to a misapplication of the law.” https://tinyurl.com/primary-jurisdiction.
  • Watch the arguments made before the court here (Dec. 6, 2017).
  • Read the Jan. 24, 2018 ruling here.

Tauler Smith Obtains Five Figure Sanctions Award Against Opposing Counsel for Attorney Misconduct

Los Angeles, Nov. 15, 2017 — A Los Angeles Superior Court judge last month dispensed with one of the complaints against Pablo David Cienfuegos, attorney Mona Deldar, and their businesses, granting the defendants’ motion to completely dismiss that lawsuit, defense attorney Robert Tauler announced. In addition, the court imposed $11,460 in sanctions against a large regional law firm.

“The court agreed with our argument that filing a second complaint after the court had already dismissed one lawsuit on the same facts was an impermissible attempt to circumvent a court order,” explained Tauler, of Tauler Smith LLP in Los Angeles.

Plaintiffs Joubin Sedgh and Adinja LLC allege that the defendants and their businesses, Serfin Capital Secured High Yield Income Fund, Serfin Capital LLC, and Deldar Legal, defrauded them in the sale and transfer of property.

“The court’s ruling sends a message that litigants can’t be bullied,” stated Tauler. “Just because a party engages a big firm, does not mean that they will get favorable treatment in court.”

Tauler Smith LLP specializes in high-stakes commercial litigation representing both plaintiffs and defendants in a variety of areas, including: false advertising, business disputes, and unfair competition.

Westside Bar Association names Robert Tauler of Tauler Smith LLP “Attorney of the Year” for 2016

Robert Tauler, managing partner of law firm Tauler Smith LLP, has been named Westside Bar Association’s “Attorney of the Year” for 2016. The Westside Bar Association serves the greater Los Angeles area by connecting young attorneys through continuing education courses and mixers, according to its website.Westside Bar Association Attorney of the Year Rob Tauler

“I am honored to receive this recognition from my peers, and hope to drive our firm and clientele to future success,” said Tauler, a Los Angeles trial attorney specializing in civil trials. The award comes on the heels of a $10 million dollar jury verdict obtained on behalf of a client against a nutritional supplement manufacturer.

The Westside Bar Association Attorney of Year Award is given to attorneys that have have achieved exceptional results for their clients early in their careers. The award reception will be held at the Sofitel Hotel in Beverly Hills on August 24, 2016. You may RSVP at info(at)westsidebarassociation(dot)com

Tauler Smith Prevails on Motion to Dismiss False Advertising Lawsuit Against Supplement Manufacturer for Allegedly Selling Designer Drug Ostarine

The U.S. District Court will allow claims against supplement maker Custom Nutraceuticals LLC (“Custom”), JRM Nutrasciences and Jason Mancuso dba DNA Pharma proceed after denying defendants’ Motion to Dismiss in a ruling published on July 8. Custom was sued by competitor Nutrition Distribution in federal court on January 26, 2016 (Case 2:16-cv-00173-DGC). According to the First Amended Complaint, Defendants marketed the SARM “Ostarine” as “NOT FOR HUMAN CONSUMPTION” while simultaneously advertising and selling its product as a new miracle body building drug.”

Plaintiff Nutrition distribution alleged in Court papers that Defendants’ ability to market the bodybuilding drug Ostarine without disclosing its harmful side effects or disclosing that international anti-doping groups have banned the product had a harmful effect on the marketplace and potentially to individual consumers. Plaintiff, who sells its own line of bodybuilding supplements, further alleged “users of [Ostarine] have little incentive to use a natural product.”

Defendants filed a motion to dismiss claiming that the lawsuit should be dismissed or stayed due to the “primary jurisdiction doctrine” which provides that certain matters involving nutritional supplement regulations be under the exclusive purview of the Food and Drug Administration (“FDA”).

Desperate ManThe Court rejected Defendants’ theory, holding that “the Court need not consult the FDA to determine whether it is false and misleading to label a product as ‘not for human consumption’ while touting the benefits of such consumption…. Nor does the Court require the FDA’s expertise to determine whether it is false and misleading to market a product to competitive athletes while neglecting to mention that it has been banned by the World Anti-Doping Agency and the U.S. Anti-Doping Agency.” (Opinion at 3:13-16,23-26). The Court continued its analysis by observing “Plaintiff’s theories do not require the Court to determine whether Ostarine is a drug or whether Defendants’ sale of Ostarine violated the FDCA [“Food, Drug, and Cosmetic Act”]. Even if Defendants are lawfully marketing Ostarine as a nutritional supplement, their statements about the product may still be false and misleading.” (Opinion, 4:25-5:3).

Tauler Smith Obtains $10 Million Verdict Against Supplement Manufacturer

Daily Journal ArticleLOS ANGELES, CA – 12/18/2015 (PRESS RELEASE JET) — Commercial litigation firm Tauler Smith LLP obtained a $10.2 million jury verdict on behalf of plaintiff Ahmad Alkayali against Neocell Corporation, a nutritional supplement company, and its officers and directors (“Defendants”).  The dispute centered on the one-time manufacturer for Neocell Corporation, a company called Healthwise Nutraceuticals, Inc.  Defendants conspired to dissolve Healthwise and transfer its assets to NeoCell without informing or compensating Mr. Alkayali, despite his 72 percent interest in the company.

Mr. Alkayali was awarded $9.5 million in economic and non-economic damages in connection with claims of conversion and breach of fiduciary duty, as well as punitive damages amounting to $685,000.

“We are very happy that the jury awarded Mr. Alkayali the value of his interest in Healthwise, as well as emotional distress and punitive damages,” said lead attorney Robert Tauler, founding partner of Tauler Smith. “It was a very hard-fought and emotional month-long trial and the verdict is vindication for our efforts.”

The verdict underscores a slew of recent litigation involving nutritional supplements.  Tauler Smith has pursued several bodybuilding supplement companies for false advertising and unfair competition related to ingredients in their products.

Background

Healthwise and Neocell were sister companies in adjoining rental space.  Healthwise manufactured the supplements, while Neocell marketed and sold the supplements.  Litigation concerning the ownership of NeoCell began in October 2008, during which Mr. Alkayali’s ownership right to NeoCell was extinguished and an injunction was issued barring him from entering the NeoCell premises, which was next door to the Healthwise facility. Although Mr. Alkayali was unable to manage the day-to-day affairs of Healthwise, he maintained his equity stake in the business. In August 2010, the defendants held a meeting where they dissolved Healthwise and transferred its assets to NeoCell, knowing that Mr. Alkayali would be unable to attend.

Read more: http://www.digitaljournal.com/pr/2782300#ixzz3v0I51vYu

Four Tauler Smith Attorneys Named to 2015 Super Lawyer list of Rising Stars

Four Tauler Smith attorneys were recently named to the 2015 Southern California Super Lawyers list of “Rising Stars,” a legal industry recognition only given to 2.5% of all lawyers in Los Angeles.  Firm Attorneys Robert Tauler, Gil Peles, Bryan Lazarski and Daniel Forouzan were given the honor.

Rising Star recognition is given to attorneys who are either 40 years old SL2015or younger or have been in practice for 10 years or less, and have attained high degrees of peer recognition and professional achievement.