Stacker 2 Ephedra Diet Pill Retailers, Maker to Pay $21.15M

Ephedra Diet Pill Marketers Hammered by Lawsuits

Stacker 2 Deal resolves over 100 cases

The maker of diet pill Stacker 2 and dozens of retailers that sold the product have reached a preliminary agreement to pay $21.25 million to people who alleged injury or death from taking the supplements, according to a court document.

Sussex County-based NVE has been operating under bankruptcy protection since August 2005, when it faced more than 100 personal in jury or wrongful death lawsuits related to its ephedra-based diet pills. The latest agreement in principle will serve as the "centerpiece" of NVE's reorganization plan, which the company needs to emerge from bankruptcy.

"There's still some time to go, but all the parties are confident we'll be able to get this done," said David Molton, an attorney for the unsecured creditors' committee in the NVE bankruptcy case.

The Stacker 2 company expects to finalize the settlement along with founder Robert Occhifinto, more than 40 companies such as Wal-Mart, GNC and CVS (which sold Stacker 2 ephedra diet pill) will pay into a trust fund, reports say.

Daniel Stolz, NVE's bankruptcy attorney, declined to say how much each would contribute, but said "Mr. Occhifinto and NVE are put ting up the significant majority of the $21 million."

Diet pill manufacturers sold millions of dollars of ephedra diet pills until the federal government banned the herbal substance in 2004 because of deaths and other injuries linked to it. NVE continues to sell non-ephedra products.

In June, the company sued Joseph Gannascoli, the actor who played a gay mobster on "The So pranos," alleging he failed to live up to his duties as a pitchman for Stacker 2. That case is pending.

Robert Roden, an attorney from Birmingham, Ala., who represents five claimants in the NVE case and several more in other ephedra-related cases, said a mediator will determine how much each plaintiff will receive from the overall pool of money.

Ephedra Diet Pill Makers Settle Ephedra Lawsuits

Another New Jersey ephedra diet pill maker, Nutraquest - manufacturer Xenadrine RFA-1, which emerged from bankruptcy last month, agreed to settle about 140 similar ephedra lawsuits for $34.4 million. Retailers and other companies are paying the majority of the settlement in that case.

Twin Labs, one of the first ephedra diet pill makers to resolve claims against it, agreed to pay about $19 million to people who sued. It was the manufacturer of Ripped Fuel and Diet Fuel and Metabolift ephedra diet pill products.

The overall settlement with NVE was less than some other weight-loss pill makers because of several factors, Stolz said, including the fact NVE had less insurance coverage than the others and Oc chifinto took less money out of the company than principals in other businesses.

Stolz also expects NVE to file its reorganization plan within the next two to three weeks and, if approved, emerge from bankruptcy perhaps by May.

Ephedra diet pills are getting scarce. Crooks are now making fake Stacker 2, selling them in New York and New Jersey health food stores and over the internet. So be careful. Make sure the internet site you shop at is verifiably a member of the Better Business Bureau.

One of the few ephedra products available is Metabadrine and can be bought at the trusted site of GorillaVitamins.com.

Ephedra Diet Pills