Executive Summary

EAS held in contempt by Newark, N.J. federal Judge Dickinson Debevoise Dec. 23 for violating preliminary injunction barring it from disseminating allegedly false, misleading ads for BetaLean HP. Contempt finding resulted from EAS' failure to stop making certain claims, including statements that BetaLean HP's proprietary formula enhances the thermogenic effect of the product's original ephedrine/caffeine combination. EAS has since removed the disputed claims from its Web site and, pursuant to the court's order, posted the following statement, which also must be distributed to firm's distributors, retailers: "A U.S. District Court found that this claim is not true and that the proprietary formula has been found to reduce and inhibit the overall thermogenic effect of the ephedrine and caffeine combination." Argument on Cytodyne's motion to dismiss an EAS countersuit will be Jan. 27 (1"The Tan Sheet" Dec. 9, 2002, p. 8)...