Federal Trade Commission v. Medlab, Inc.
Opinion
Opinion
Illston, J.
ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT
On March 27, 2009, the Court heard oral argument on plaintiffs motion for summary judgment. Having considered the arguments of the parties and the papers submitted, and for good cause shown, plaintiffs motion for summary judgment is GRANTED.
BACKGROUND
Plaintiff, the Federal Trade Commission (“FTC”), brings this action against defendants Medlab, Inc.; Pinnacle Holdings, Inc.; Metabolic Research Associates, Inc.; USA Health, Inc.; and Scott Holmes. In its complaint, filed February 6, 2008, the FTC alleges that defendants violated sections 5(a) and 12 of the Federal Trade Commission Act, 15 U.S.C. §§ 45 (a), 52, by representing in their advertisements that:
Complaint ¶ 17.
1. The Defendants
The corporate defendants are closely held Georgia corporations. Answer ¶¶ 6-9. [Docket No. 14] Medlab, Inc.; Metabolic Research Associates, Inc.; and U.S.A. Health, Inc. marketed and distributed the weight loss product at issue here under the names Zyladex, Questral AC, and Rapid Loss. See Decl. of Raminder Sabhi in Supp. of PI. Mot. for Summ. J. (“Sabhi Deck”), ex. 29 ¶¶ 19-21. Each of these defendant companies was run by defendant…