On August 1, 2002, the United States District Court for the Central District of California entered an Order requiring prompt action in a suit filed by a U.S. subsidiary of Degussa BioActives on February 15, 2002 against Muscle Marketing USA, Inc. This suit asks the U.S. court to force Muscle Marketing to stop making, and to correct, false claims about powdered creatine, a nutritional supplement that enhances exercise performance. Degussa BioActives US Sales, Inc. is a 100% subsidiary of Degussa BioActives, based in Champaign, Illinois. Muscle Marketing, based in Bell, California, sells liquid creatine, which it calls creatine serum.
As the market leader for powdered creatine, under the Creapure™ brand, Degussa BioActives will not accept any company making what we believe to be scientifically false claims about creatine in either powder or liquid forms. State of the art analytical methods prove that the Muscle Marketing USA Creatine Serum products contain only very small amounts of creatine, and in fact contain more of an undesirable degradation product, creatinine.
The suit outlines what are believed to be five false, deceptive and misleading claims made by Muscle Marketing in its advertising and online materials and requests a permanent injunction and damages.
Degussa BioActives is also asking the court to require Muscle Marketing to publish advertisements to correct the deceptive statements. The claims and statements made by Muscle Marketing regarding the relative safety and effectiveness of creatine powder and creatine serum are believed to be materially false and misleading.
Consumer Class Action
In a separate class action, filed on August 9, 2002 Muscle Marketing USA is charged with deception of the consuming public by making false and unsupported claims regarding such products which are in fact contradicted by three types of studies demonstrating the falsity of such claims. The action is brought on behalf of consumers who purchased Muscle Marketing USA’s Creatine Serum Products.
According to this independently brought Complaint, published research demonstrates that the accused Creatine Serum Products marketed by Muscle Marketing USA do not result in any increase of blood levels of creatine after ingestion and “have no beneficial effect on muscle growth or athletic performance”.
The Class Action Complaint demands that Muscle Marketing USA be permanently enjoined from selling their Creatine Serum Products by means of fraudulent, false, deceptive, and misleading means, and demands restitution of all monies received by Muscle Marketing USA as a result of sales of such products.
The charges brought against Muscle Marketing USA in the independent class action complaint are similar to those earlier brought by Degussa BioActives and provide additional support for those claims.
Degussa BioActives specializes in a wide range of health-promoting ingredients for the food and dietary supplement industry. Technical information on Degussa BioActives' full line of ingredients can be found on the web site at www.degussa-bioactives.com.
Degussa is an entirely newly-formed, multinational corporation with sales of EUR12.9 billion and a workforce of some 53,400. In fiscal 2001, the corporation generated operating profits (EBITA) of more than EUR1 billion. Degussa's core strength lies in highly effective system solutions tailored to the requirements of its customers in over 100 countries throughout the world. Its activities are led by the vision "Everybody benefits from a Degussa product – every day and everywhere".
One of our 23 business units is Degussa BioActives, which specializes in bioactive, health-promoting substances for the food industry.
For more information, please contact Daniela Doering, head of communication, at +49 8161 548 150 or [email protected]