Court Orders Xenadrine Maker to Pay $12.5 Million to California Consumers After Finding Misrepresented Science

In the late 1990s and early 2000s, Cytodyne Technologies marketed Xenadrine RFA-1 as a scientifically validated weight-loss supplement. The product contained ephedra, a stimulant linked to serious cardiovascular risks, and was sold throughout California with advertising that cited favorable research. What those ads did not tell consumers was that the underlying science had been shaped by the company itself.

California consumers filed a class action covering purchases made between 1997 and June 2001. James Frantz was among the attorneys representing the plaintiffs. As the case was decided, the evidence showed that Cytodyne had not merely cherry-picked data; Judge Styn found the company actively pressured commissioned researchers to present their findings in a manner favorable to the manufacturer, while excluding, misstating, and overstating the actual scientific results.

The case proceeded under California false-advertising law. Cytodyne defended its marketing as truthful and argued that some promotional language amounted to acceptable 'puffery.' The company also pointed to prior FTC clearance of certain claims. Judge Styn rejected those defenses. On May 30, 2003, he ruled in favor of the class.

The $12.5 million represented all of Cytodyne's profits on Xenadrine RFA-1 in California across the class period. The court ordered the money placed into a restitution pool for consumers, and also awarded attorneys' fees and injunctive relief. Cytodyne characterized the ruling as tentative and announced plans to appeal. Later in 2003 the company filed for bankruptcy under the name Nutraquest, facing parallel lawsuits nationally over its ephedra products, which left in doubt whether consumers were ever paid.

The ruling came as California was moving toward a statewide ban on ephedra-based supplements. It was among the earliest consumer-class verdicts to hold a dietary-supplement maker liable specifically for manipulating the research it commissioned.