1. Diet Pill Maker Fights $40M FTC Penalty at 11th Circuit

    Diet Pill Maker Fights $40M FTC Penalty at 11th Circuit

    Continuing a 15-year legal battle with the Federal Trade Commission, attorneys for a Georgia-based dietary supplement manufacturer asked the 11th Circuit on Friday to overturn a ruling imposing $40 million in sanctions for violating court orders related to false advertising.

    A federal judge issued an order in October 2017 finding Hi-Tech Pharmaceuticals, CEO Jared Wheat, and Senior Vice President Stephen Smith in contempt for violating an injunction related to the company’s sale of weight-loss dietary supplements.

    The order imposed a $40 million judgment against the manufacturer and against Wheat personally for selling $40.1 million in products in violation of the terms of a 2008 injunction.

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    1. In order to find contempt, the government has to show that the order was clear and was violated… In order to impose sanctions, you have to be able to understand the injunction.
    2. It would be manifestly unfair not to review the injunction.
    3. We can challenge the injunction [now] because it provides the basis for the contempt order.
    4. No company in the industry could satisfy the requirements of the injunction.
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