An Alameda County, Calif., jury late
last month returned a $50 million
verdict in a class action that sought
relief for Californians who'd bought
Avacor, a hair-loss remedy that was
marketed as an all-natural, clinically
tested product.
Attorneys fees have yet to be decided,
said L. Timothy Fisher, of Walnut Creek,
Calif., firm Bramson, Plutzik, Mahler &
Birkhaeuser. New York lawyer Scott
Bursor and New York firm Faruqi & Faruqi
also represented the plaintiffs.
There were about 150,000 purchases of
Avacor in California during the class
period, but since some were reorders,
the exact size of the class is unclear,
Fisher said.
The outcome against two defendants
marked the second trial victory in the
same class action for the plaintiff
lawyers. The earlier trial had ended in
a $40 million win against different
defendants, but Fisher said the awards
from the trials will not be added
together, and he expects the court will
order that $50 million in all be
returned to the class.
Both trials took place before Alameda
County Superior Court Judge Robert
Freedman.
The defendants in the latest trial were
two officers of Global Vision Products
Inc., Robert DeBenedictis and Henry
Edelson -- a court stay after the
company's 2007 bankruptcy filing had
kept them out of the earlier one.
DeBenedictis was represented by Peter
Hart and Michael Collins of
LeClairRyan's San Francisco and New York
offices, respectively. Edelson was
recently representing himself and did
not appear at trial.
One of DeBenedictis' lawyers said his
client was just an investor and not
directly participating in the company in
its early years, and that he planned to
appeal.
"Once he became involved in 2004, he
took every effort he possibly could to
get the company back on the straight and
narrow and get its advertising in
compliance with the Better Business
Bureau and the Food and Drug
Administration," Hart said. "We think
the jury looked at his position and made
the leap that just because he was
president, he was responsible." To
bolster that thought, he noted that the
jury had found in DeBenedictis' favor on
allegations of conspiracy with
defendants from the earlier trial.
Name plaintiffs Garrett Boyd and James
Thomas claimed Avacor's three-part "hair
re-growth program" was misleading in
selling itself as an all-natural,
clinically tested product with no side
effects. Fisher, one of their lawyers,
contended that Global Vision Products'
advertising referred to a clinic that
didn't exist, a study that was never
done and success rates that had no
backing. The company, having filed for
bankruptcy, was not included in either
trial in Thomas v. Global Vision
Products, RG-03091195.
Testimony that DeBenedictis continues to
sell Avacor seemed influential with the
jury, Fisher said.
"We got the sense that they understood
how many people had been defrauded here
and that this was a widespread scheme,
that this was something that [they]
needed to put a stop to."
But Hart said that while DeBenedictis
has an interest in a new company, Avacor,
no state or federal agency is claiming
that selling the hair remedy is
improper.
The 2007 trial involved three principal
defendants: Avacor's creator, a Nascar
driver hired as its celebrity spokesman
and a former doctor who appeared in ads
for the product. The jury returned a
verdict of just under $37 million. In
his May 2008 statement of decision,
Freedman increased the award to $40
million.
"The court can and does take judicial
notice of the fact that enormous sums of
money are spent on personal care and
grooming products," Freedman wrote in
that decision. "Into this lucrative
market stepped a band of hucksters,
defendants, to prey on the
vulnerabilities of human nature and
employing a colossal array of false,
deceptive and fraudulent techniques
cynically collected millions of dollars
from deceived California consumers."

