Navigation Links
Scilabs Nutraceuticals Inc., Files Multimillion Dollar Suit Against Naturade for Fraudulent Business Practices

Scilabs Nutraceuticals, a dietary supplement manufacturer, has filed suit against Naturade, a division of NNC LC, for the alleged misappropriation of trade secrets, fraud, and breach of contract.

(PRWEB) May 3, 2010 -- Scilabs Nutraceuticals, a dietary supplement manufacturer, has filed suit against Naturade, a division of NNC LC, for the alleged misappropriation of trade secrets, fraud, and breach of contract. The complaint, case number 00341089, filed in Orange County Superior Court, Santa Ana, seeks to hold Naturade liable for damages.

As stated in the case, in late 2008 Naturade partnered with Scilabs to develop working formulas for thirteen Naturade brand products. According to court documents from Richard Robinette, CEO of Naturade, these products were distributed to over 25,000 major retailers nationwide including Sam’s Club, The Vitamin Shoppe,,, UNFI, Tree of Life, Stop n Shop, Publix, Meijer, and a “host of mid-size and small chains…”. In December of 2009, after the investment of hundreds of hours of skilled research and development on the part of Scilabs, Naturade abruptly severed its contractual ties. Naturade went on to work with other labs and reverse engineer Scilabs’ formulas. In doing so, Naturade allegedly not only breached established contractual agreements, but also violated Scilabs’ right to ownership of its own intellectual property.

According to Paul Edalat, CEO and Chairman of Scilabs, Naturade and Robinette allegedly conspired to defraud Scilabs. In the suit, Scilabs contends that Robinette fraudulently induced Scilabs to do business with promises of longevity and large volumes of production, despite its recent bankruptcy. “(Robinette) had intentions to use Scilabs to rebuild Naturade as a brand and move business elsewhere,” Edalat states. “Theft of intellectual property cannot be taken lightly; we will battle this and we will prevail.” In order to accommodate the anticipated growth in business volume Scilabs asserts that it was not only forced to cease pursuing new customers, but to make large monetary and time investments to the tune of hundreds of thousands of dollars.

Furthermore, Scilabs contends in court documents that Naturade is unfairly competing by misappropriating Scilabs' formulas. What was once a method of advancement in nutraceutical research and development has turned into a tool for propagating widespread fraud and unfair competitive practices. While the Food and Drug Administration does not regulate what can be considered “knock-off” dietary supplements, a food in the eyes of the FDA, Section 403 of the Food, Drug, and Cosmetics Act , protects consumers from misbranded foods. As Edalat states, “In an industry experiencing rapid growth, practices such as reverse engineering of proprietary formulas should be illegal. While it harms the image of the industry, the consumer is the one who will suffer in the end.”

For more information regarding the lawsuit please visit

Scilabs Nutraceuticals Inc., is a contract manufacturer based in Irvine, California. For more information please visit

Tracey Kelley, director of public relations
Tracey (at) Scilabs (dot) net


Read the full story at

Source: PRWeb
Copyright©2010 Vocus, Inc.
All rights reserved  

Related medicine news :

1. Nutraceuticals World Launches Redesigned Website
2. Reportlinker Adds Key Players and Innovative Start-Ups in Nutraceuticals: Emerging Strategies in Ingredients, Pharma, Food and Drinks
3. Ophthalmic Women Leaders (OWL) Names Pamela Gleeson, CFO Of Santen Inc., as 2010 President
4. MPE Inc., a Leading Supplier of Recycled Protective Garments, Becomes Approved Vendor on DOD EMALL
5. Mark Samuel, CEO & Founder, IMPAQ Accountability Business Consultants Inc., to Present at 14th ICF Annual International Conference
6. New License Agreement with University of Colorado Gives Viral Genetics, Inc., Right to Develop Cancer Therapies
7. Team Health Holdings, Inc., Announces Fourth Quarter and Fiscal 2009 Financial Results
8. Phoenix-Lazerus, Inc., Maker of Save-A-Tooth Says Lack of Preparation for Knocked out Teeth can Make Children Dentally Handicapped for Life
9. TeamHealth Holdings, Inc., to Present at Barclays Capital Global Healthcare Conference
10. Net32, Inc., Reports Record Rate of New Product Additions
11. Distinct demographic profiles between Crohns disease and ulcerative colitis
Post Your Comments:
Related Image:
Scilabs Nutraceuticals Inc., Files Multimillion Dollar Suit Against Naturade for Fraudulent Business Practices 
(Date:6/25/2016)... (PRWEB) , ... June 25, 2016 , ... The temporary closing of Bruton Memorial Library ... City Observer , brings up a new, often overlooked aspect of head lice: the parasite’s ... for fumigation is not a common occurrence, but a necessary one in the event that ...
(Date:6/25/2016)... ... ... On Friday, June 10, Van Mitchell, Secretary of the Maryland Department of Health ... of their exemplary accomplishments in worksite health promotion. , The Wellness at Work Awards ... at the BWI Marriott in Linthicum Heights. iHire was one of 42 businesses to ...
(Date:6/24/2016)... CA (PRWEB) , ... June 24, 2016 , ... Marcy was in a crisis. Her ... would lash out at his family verbally and physically. , “When something upset him, he ... he would use it. He would throw rocks at my other children and say he ...
(Date:6/24/2016)... (PRWEB) , ... June 24, 2016 , ... Topical BioMedics, Inc, makers of Topricin and ... that call for a minimum wage raise to $12 an hour by 2020 and then ... will restore the lost value of the minimum wage, assure the wage floor does not ...
(Date:6/24/2016)... ... 2016 , ... Strategic Capital Partners, LLC (SCP) in concert ... capital for emerging technology companies. SCP has delivered investment events and professional ... than a million dollars of capital investment for five companies. The ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... Mass. , June 24, 2016   Pulmatrix, ... pharmaceutical company developing innovative inhaled drugs, announced today that ... Russell Investments reconstituted its comprehensive set of ... "This is an important milestone for Pulmatrix," ... will increase shareholder awareness of our progress in developing ...
(Date:6/23/2016)... DUBLIN , June 23, 2016 ... "Dialysis Devices Global Market - Forecast to 2022" report ... is the treatment method for the patients with kidney failure, ... and excess fluid from the patient,s blood and thus the ... sodium, potassium and chloride in balance. Increasing ...
(Date:6/23/2016)... 23, 2016 Roche (SIX: RO, ROG; OTCQX: ... its Elecsys BRAHMS PCT (procalcitonin) assay as a dedicated ... shock. With this clearance, Roche is the first IVD ... solution for sepsis risk assessment and management. ... and PCT levels in blood can aid clinicians in ...
Breaking Medicine Technology: