NOTICE OF CLASS ACTION SETTLEMENT

Transcription

1 NOTICE OF CLASS ACTION SETTLEMENT If you have purchased Juvenon Cellular Health Supplements at any time since April 2011, you may be a party to a class action settlement. A court authorized this notice. This is not a solicitation from a lawyer. A settlement has been reached in a class action lawsuit that affects your rights. The settlement resolves a class action lawsuit against Juvenon Inc. and Juvenon LLC, and their CEO Nathan Hamilton, and Vitaquest International, LLC (collectively referred to as Defendants ) alleging that Defendants engaged in unfair competition, fraud, misrepresentation, and false advertising for manufacturing Juvenon Cellular Health Supplements that contained less of the active ingredients alpha lipoic acid ( ALA ) and acetyl-l-carnitine ( ALC ) than was stated on the product label, all in violation of California law. Defendants deny these allegations. The Court has not decided whether to finally approve the settlement. Relief will be made final only after the Court approves the settlement and any appeals are resolved. The decision of whether to participate in, request to be excluded from, and/or object to the settlement is entirely yours. YOUR RIGHTS AND OPTIONS REGARDING THE SETTLEMENT DO NOTHING AND BE A PARTY TO THE SETTLEMENT REQUEST TO BE EXCLUDED FROM THE SETTLEMENT OBJECT TO THE TERMS OF THE SETTLEMENT Do nothing. Be a party to the settlement that requires continued testing by Juvenon for two years to ensure that Juvenon Cellular Health Supplements contain the amount of its active ingredients as stated on the label. Release your claims against Defendants. See Section 21 below for more information about the release. Ask to be excluded. Retain the right to file your own lawsuit for the same claims. See Section 12 below. File an objection that the settlement is unfair or inadequate. See Section 13 below. Please read this Notice carefully. It describes your rights, and the steps you have to take if you choose to exclude yourself from the settlement. -1-

2 1. Why did I receive this Notice? BASIC INFORMATION Records produced by the Defendants indicate that you have purchased Juvenon Cellular Health Supplements at some time since April A settlement has been reached in a class action lawsuit against Defendants that affects your rights. Judge Steven L. Dylina of the California Superior Court in and for the County of San Mateo, who is overseeing this class action, ordered that you be sent this notice. 2. What is this class action about? This class action, known as William Wraith III v. Juvenon Inc. et al, Case No. CIV , alleges that Defendants manufactured Juvenon Cellular Health Supplements that contained less of the active ingredients ALA and ALC than what was advertised on the label. The lawsuit alleges that these practices violated the California Unfair Business Practices Act and portions of the California Civil Code for fraud, negligent misrepresentation, and false advertising. 3. How do the Defendants respond? Defendants have denied and continue to deny all of the allegations in the lawsuit. Defendants contend that they used the proper amounts of ALA and ALC and that Defendants have not violated the California Civil Code or the California Unfair Business Practices Act. 4. What is a class action and who is involved? In a class action lawsuit, one or more people called Class Representatives sue on behalf of other people who have similar claims. The Class Representative in this case is William Wraith III. The consumers he represents are the Class or Class Members. The Class Representative is called the Plaintiff. Juvenon Inc. and Juvenon LLC, and their CEO Nathan Hamilton, and Vitaquest International, LLC are called the Defendants. One court resolves the issues for everyone in the Class, except for those people who request to exclude themselves from the Class. 5. Why is this lawsuit being settled? After settlement negotiations and the exchange of information and documents, the Class Representative and Defendants have agreed to settle this case rather than go to trial. During the exchange of information and documents, Defendants produced records showing that they included the proper amount of the active ingredients in formulating Juvenon Cellular Health Supplement and that the test results upon which Plaintiff relied were explained by the binding of the active ingredients to the calcium Defendants used to hold the tablets together. According to the records produced, the binding of the calcium to the active ingredients interferes with measuring the amount of the active ingredients in a formulated tablet. The settlement represents a compromise of highly disputed claims in light of this information produced during the lawsuit and is not an admission by either party that the claims alleged do or do not have merit. The parties and their attorneys believe the proposed settlement is in the best interests of the class given the risks and expense of going to trial. -2-

3 6. Has the Court decided who is right? No. The Court has not decided anything yet, only that you should get a copy of this notice so that you can review the settlement and determine whether you want to participate in the settlement, object to it, or exclude yourself from the settlement. 7. Who is the Settlement Administrator? The settlement administrator is a third party appointed by the Court to send notice to you about the settlement. In the present case, the Court has appointed Heffler Claims Group to act as the settlement administrator. You may contact the Settlement Administrator at the following address: Heffler Claims Group, 1515 Market Street Suite 1700, Philadelphia, PA Am I part of this Class? YOUR RIGHTS AND OPTIONS In preliminarily approving the settlement, the Court defined the Class to include all California residents who purchased Juvenon Cellular Health Supplements manufactured by Defendants at any time since April Records indicate that you are a class member. (If you have filed or want to file your own lawsuit and not be part of this case, read Section 12 below). 9. What does the settlement provide? Defendants have agreed that defendant Juvenon LLC will continue to test each newly formulated lot of Juvenon Cellular Health Supplement and report the results of such tests to Class Counsel for two years to verify that the amounts of the active ingredients ALA and ALC are as labeled. If the labeling of the Supplements should vary substantially from the results of the testing Juvenon conducts, and Juvenon states that it nonetheless plans to proceed with the sale of the Supplements, Plaintiff may seek to enjoin the sale and seek restitution from Juvenon for purchases of any future mislabeled Supplements. In return, Class Members who do not timely request to be excluded from the Class will release any claims they might have against Defendants that were or could have been raised in the lawsuit, based on the allegations in the lawsuit. For more information about the claims being released as part of the settlement, see Section 21 below. 10. How do I participate in the settlement? You do not need to do anything to participate. You will automatically be a party to the settlement and release claims against Defendants unless you request to be excluded from the settlement. 11. How will the settlement affect my rights? If the settlement is approved and you do not request to be excluded from the settlement as set forth in Section 12, you will release your claims as set out in Section

4 12. How do I request to be excluded from the settlement? If you wish to be excluded from the settlement, you must write the Settlement Administrator at the address specified above in Section 7 and request to be excluded. Your request must include: (1) your name, (2) your address, (3) your telephone number, (4) your written statement that you request to be excluded from the settlement, and (5) your dated signature. To be effective, your request must be postmarked no later than April 11, If you do not complete and timely mail a valid request to be excluded from the settlement, you will be bound by all terms and conditions of the settlement, including its release of claims. If you do submit a timely and valid request to be excluded, you will retain the right to sue Defendants separately about the same legal claims in this lawsuit. 13. May I object to the settlement? If you believe the settlement is unfair or inadequate, you may object, personally or through an attorney, by mailing a copy of your objection to the Settlement Administrator at the address set forth above in Section 7. You cannot object to the settlement and exclude yourself from the settlement. Your objection must include: (1) your name, (2) the reason why you object to the settlement, (3) a statement of whether you intend to appear at the final approval hearing, (4) a list of any documents or witnesses you contend support your objection, and (5) your dated signature. To be effective, your objection must be postmarked no later than April 11, Do not telephone the Court or Defendants counsel. If the Court rejects your objection, you will still be bound by the terms of the settlement and waive any and all rights to appeal from the judgment. You will not be able to exclude yourself from the settlement. 14. Do I have a lawyer in this case? THE LAWYERS REPRESENTING YOU The Court has determined that the law firm of Chavez & Gertler LLP is qualified to represent you and all Class Members. Lawyers for this firm are called Class Counsel. They are experienced in handling similar cases. Their contact information is at the end of this Notice. 15. May I get my own lawyer? You do not need to hire your own lawyer because Class Counsel is working on your behalf. Nonetheless, you may hire your own lawyer if you wish. If you hire your own lawyer, however, you are responsible for paying for that lawyer. 16. How will Class Counsel be paid? You do not have to pay Class Counsel s fees and costs. The fees and expenses that the Court approves will be paid by Defendants. More information about the attorneys fees and costs is contained in Section 19 below. -4-

5 17. What have Defendants agreed to do? TERMS OF THE SETTLEMENT Juvenon has agreed to continue to verify the quantity of the active ingredients alpha lipoic acid and acetyl-l-carnitine in each newly formulated lot of Supplements and provide the results of such testing to Class Counsel for a period of two years. Defendants have also agreed to pay Plaintiff $1,000 as a Class Representative Payment subject to approval by the Court. This payment is discussed in Section 18 below. 18. What is a Class Representative Payment? In class actions such as this one, a court may provide the Class Representative a class representative payment in recognition of the time, effort, and risks the Class Representative took to prosecute the class action. In the present case, Plaintiff reserves the right to request that the Court award him such a payment in an amount up to $1, How much will the attorneys get? Plaintiff will request that the Court award his attorneys fees and actual costs of $90,000. This is not money that would otherwise be distributed to the Class. Class Members are not personally liable for any fees and costs, and Defendants will pay these fees and costs. 20. How much will it cost to administer the Settlement? It is estimated that it will cost approximately $5,000 for the Settlement Administrator to fully administer the settlement. This amount will be borne in equal shares between Plaintiff and Defendants. RELEASE OF CLAIMS 21. What claims are being released as part of the settlement? Upon final approval of the settlement by the Court, and except as to such rights or claims as may be created by the settlement agreement, each Class Member that does not exclude him or herself will fully release and discharge Defendants, including their former and present parent companies, subsidiaries, divisions, related or affiliated companies, related or affiliated companies, and each and all of the foregoing entities shareholders, officers, directors, employees, partners, agents, representatives, attorneys, insurers, successors and assigns, and any individual or entity that could be jointly liable with any of the foregoing, from all claims which were or could have been pled in the lawsuit under the facts alleged in the Complaint and First Amended Complaint in this Action through January 26,

6 FINAL SETTLEMENT APPROVAL HEARING 22. When will the Court consider whether to finally approve the settlement? The Court will hold a hearing in Department 7 of the California Superior Court in and for the County of San Mateo, located at 400 County Center, Redwood City, CA 94063, on June 22, 2015 at 2:00 p.m, to decide whether to finally approve the settlement. At that time, the Court will also decide whether to approve Class Counsel s request for attorneys fees and reimbursement of costs, and the Class Representative Payment. It is not necessary for you to appear at this hearing. If you have timely submitted an objection to the settlement and a notice of intent to appear, you may appear at the hearing to argue your objection to the Court. Any attorney who will represent you must file a notice of appearance with the Court and serve the notice of appearance on Class Counsel and counsel for Defendants, on or before June 15, 2015 (one week before the hearing). You will be solely responsible for the fees and costs of your own attorney. The hearing may be postponed without further notice to the Class. If the settlement is not approved, the lawsuit will continue to be prepared for trial or other judicial resolution. 23. How do I get more information? FURTHER INFORMATION This Notice provides a summary of the basic terms of the settlement. For the settlement s complete terms and conditions, please consult the settlement agreement, and the settlement website, located at You can access other documents in the case on the website for the California Superior Court in and for the County of San Mateo, or by visiting the clerk of the court located at 400 County Center, Redwood City, CA If you have more questions about this notice or this lawsuit, you can contact Class Counsel at: CHAVEZ & GERTLER LLP Jonathan E. Gertler 42 Miller Ave. Mill Valley, CA Tel: (415) Fax: (415) PLEASE DO NOT TELEPHONE OR WRITE THE COURT, THE OFFICE OF THE CLERK, DEFENDANTS, OR DEFENSE COUNSEL FOR INFORMATION REGARDING THIS SETTLEMENT. -6-