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Hi-Tech Pharmaceuticals Files Lawsuits against Iovate and AllMax over Racketeer Influenced and Corrupt Organizations (RICO) and Protein Spiking Allegations - WRCBtv.com | Chattanooga News, Weather & Sports
First MusclePharm, now Iovate and AllMaxATLANTA, June 3, 2016 /PRNewswire/ -- Protein supplement maker Hi-Tech Pharmaceuticals, Inc. says rivals Iovate and AllMax artificially inflated the level of protein in their protein products and then lies to consumers about it, violating federal competition and state consumer protection laws, according to two complaints filed in Georgia federal court. The lawsuits further alleges violations of the Racketeer Influenced and Corrupt Organizations (RICO) act and protein spiking allegations involving Iovate and AllMax Sports Nutrition's protein supplements.
Hi-Tech Pharmaceuticals, Inc. (PRNewsFoto/Hi-Tech Pharmaceuticals, Inc.)
The Iovate lawsuit alleges that Iovate and its CEO Paul Gardiner were engaged in a scheme to defraud consumers as to the MuscleTech NitroTech, MuscleTech Phase8, MuscleTech Platinum 100% Whey, MuscleTech Platinum 100% Iso-Whey, Six Star Whey Protein Plus, Six Star Protein Shakes, Six Star Recovery Protein, Six Star Whey Isolate Plus, and EPIQ Isolate protein powders product's content, quality, characteristics, and/or ingredients, and caused and enabled consumers to purchase Iovate's products instead of Hi-Tech's NitroPro® product.
The lawsuit's allegations include that Iovate's label makes misleading claims about its protein content. For example, the labeling claims that the product contains certain amounts of protein per serving; however, this figure allegedly also includes various amino acids and; the non-amino acid compound, Creatine Monohydrate.
The Allmax lawsuit alleges that Allmax and its CEO Michael Kichuk were engaged in a scheme to defraud consumers as to the AllMax Ultra-Premium 6 Protein Blend HexaPro protein powders product's content, quality, characteristics, and/or ingredients, and caused and enabled consumers to purchase Allmax's products instead of Hi-Tech's NitroPro® product.
The lawsuits also allege, "In furtherance of this scheme, Iovate and Allmax used the Internet to disseminate its false product claims to consumers across the United States, and to enable consumers to purchase Iovate and AllMax's products online. They also used the U.S. Mail and/or other interstate carriers to ship the products to consumers throughout the United States in violation of 18 U.S.C. Section 1341." The suit further alleges, "Defendants have conspired to conduct and participate in the conduct of the affairs of the enterprise through a pattern of racketeering activity. That conduct constitutes conspiracy to violate Racketeer Influenced and Corrupt Organizations (RICO) 18 U.S.C. Section 1962(c), in violation of 18 U.S.C. Section 1962(d)." Passed the year after The Godfather was published, RICO is part of a 1970 law designed to allows plaintiffs to bring civil lawsuits against organizations whose members allegedly committed crimes.
Hi-Tech Pharmaceuticals lawsuits allege that Iovate and Allmax's Protein products do not contain the quantity of protein as claimed on the product's label, and also alleges the use of non-protein ingredients in protein supplement products due to a process known as "protein-spiking." These ingredients are added to increase a protein product's nitrogen content while allowing the manufacturer to save on protein manufacturing costs. A popularly used protein content test uses nitrogen as a measure of protein; therefore, protein spiking serves to fool consumers into believing they are receiving more whey protein than is actually contained in the product.
