CENTRAL ISLIP, N.Y. (Legal Newsline) - Hi-Tech Pharmacal Co. Inc. has agreed to settle a class action lawsuit alleging that it misrepresented the efficacy of a group of over-the-counter drugs.
Consumers who purchased Sinus Buster products between March 7, 2012 and Feb. 20, could be eligible for a cash payment from the settlement.
Class members of the settlement include consumers who purchased Sinus Buster products - including Sinus Buster, Sinus Buster Mild, Sinus Buster Anti-Cold Formula, Cold Buster, Allergy Buster, Sinus Buster Allergy Formula, Headache Buster and Sinus Buster Headache Formula - between March 7, 2012, and Feb. 20.
The settlement will provide refunds of $5 per affected product, up to a maximum of two products, to class members who do not submit a proof of purchase. Class members who submit proofs of purchase with their claim forms will be eligible to receive a full monetary refund of the actual purchase price of the affected products purchased. The claim form deadline in July 17.
David Delre and Matthew Harrison will receive $2,500 each as incentive awards in recognition of their efforts on behalf of the settlement class.
"Class counsel shall submit a request for an award of attorneys' fees and expenses, up to a maximum of $250,000 upon the court's entry of the order and final judgment and an order awarding fees..." according to the stipulation and settlement agreement filed Dec. 23.
Sinus Buster products are a line of capsaicin-based drugs that are marketed and sold online and in retail stores for between $10 and $15 per bottle.
Hi-Tech claimed capsaicin has the ability to treat sinus congestion and related cold and allergy symptoms, according to the suit.
Delre claimed he purchased Sinus Buster products, which did not give him the relief promised on the product's label or in the defendants' advertisements.
Harrison claimed the defendant's advertising claims were false and the products did not relieve his congestion.
The plaintiffs also claimed they were concerned regarding the efficacy of homeopathic products and that the Sinus Buster products were not homeopathic but "are illegal unapproved non-homeopathic drugs."
Hi-Tech falsely represented that Sinus Buster products were effective for their advertised purpose, homeopathic, FDA-approved, and proven effective, according to the suit.
The plaintiffs claimed Hi-Tech misrepresented the efficacy of its Sinus Buster products in violation of consumer protection and warranty laws.
Had they known the products were labeled inaccurately, the plaintiffs would not have purchased or paid as much for the products, according to the suit.
Hi-Tech denies the allegations but has agreed to the class action settlement to avoid the expense and uncertainty of ongoing litigation.
A final hearing is scheduled for June 27.
The plaintiffs were represented by Antonio Vozzolo and Courtney E. Maccarone of Faruqi & Faruqi LLP; and Scott A. Burso and Joseph I. Marchese of Bursor & Fisher PA.
Hi-Tech was represented by Jeffrey N. Levy of Tashlik Goldwyn Crandell Levy LLP.
The case was assigned to District Judge Arthur D. Spatt.
U.S. District Court for the Eastern District of New York case number: 1:12-cv-02429
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