Metabolife
Metabolife is an American corporation which manufactures dietary supplements. Metabolife's best-selling product, an ephedra-based supplement called Metabolife 356, once generated over $1 billion in annual sales.[1] However, Metabolife 356 and other ephedra-containing supplements were linked to thousands of serious adverse events, including deaths, culminating in a ban on ephedra-containing dietary supplements as unsafe by the Food and Drug Administration in 2004.
Metabolife founder Michael Ellis was indicted on 8 counts of making false statements to the FDA in an effort to obstruct regulation of ephedra.[2][3] Metabolife was also investigated by the Internal Revenue Service and the Department of Justice for income tax evasion; ultimately, the company pled guilty to filing fraudulent tax returns and was sentenced to pay a criminal fine of $600,000.[4] Metabolife owner William Bradley also pled guilty to evading millions of dollars in taxes and was sentenced to 6 months in federal prison and 2 years of probation.[5][6]
In response to falling sales, and facing more than $1 billion in personal injury legal claims related to Metabolife 356,[7] Metabolife filed for Chapter 11 bankruptcy in 2005.[8] The company's furnishings and property, including a large collection of artwork, were liquidated in late 2006 to compensate creditors and settle outstanding personal-injury claims.[9]
Notes
- ↑ Defending a diet pill, by Daniel Eisenberg. Published in Time on October 18 1999. Accessed April 11 2007.
- ↑ Criminal investigation sought for diet supplement seller. Published in USA Today on August 15 2002. Accessed April 11 2007.
- ↑ Metabolife will plead guilty, end tax probe, by David Washburn. Published in the San Diego Union-Tribune on August 6 2005. Accessed April 11 2007.
- ↑ News Release from the United States Department of Justice, dated December 16 2005. Accessed April 11 2007.
- ↑ Metabolife and Owner William Bradley Plead Guilty to Tax Charges. A press release from the United States Department of Justice, dated October 5 2005. Accessed April 11 2007.
- ↑ Breaking Stories: Case Closed, by Matt Potter. Published on SanDiegoReader.com on October 5 2006. Accessed April 11 2007.
- ↑ Ex-Metabolife Hopes to Settle Ephedra Claims, by Penni Crabtree. Reprinted from the San Diego Union-Tribune on June 2 2006. Accessed April 11 2007.
- ↑ Metabolife Continues Its Search for Buyer, by Mike Allen. Published in the San Diego Business Journal on October 17 2005. Accessed April 11 2007.
- ↑ Metabolife's Artwork Goes on the Block Today, by Diane Bell. Published in the San Diego Union-Tribune on November 30 2006; accessed June 22 2007.