Boiron settles class action alleging false claims of effectiveness

Rolfe · 2nd May 2012, 01:56 PM

I haven't seen a thread on this. Boiron is apparently in the process of throwing in the towel in a class action alleging their products are nothing more than sugar pills.

http://www.topclassactions.com/lawsu...ion-settlement

Quote:

The Boiron settlement will resolve a class action lawsuit, entitled Gallucci v. Boiron, Inc., that alleges Boiron made false claims about the effectiveness of its homeopathic products’ treatment of ailments such as the flu, arthritis, sore joints, join pain, aches, fever, coughs, insomnia or sleeplessness.

According to the class action lawsuit, the active ingredients in Boiron’s products are so diluted that they are “effectively non-existent,” making them nothing more than sugar pills.

The proposed Boiron class action settlement was reached after “extensive investigation and discovery” by Class Counsel, which examined approximately 400,000 documents -- including scientific articles, marketing data, sales figures, and more – and consulted with a scientific expert, court documents say.

Rolfe.

Madalch · 2nd May 2012, 04:36 PM

So they have to pay out $5 million. Is this really going to make much of a dent in their bottom line? Will they actually bother changing their claims?

Beerina · 2nd May 2012, 04:50 PM

Gord_in_Toronto · 2nd May 2012, 05:48 PM

I wonder what this will mean for the Canadian lawsuit?

http://forums.randi.org/showthread.php?p=8189590

Almo · 3rd May 2012, 05:35 PM

I really, really hope this is the beginning of a fail-cascade. But I doubt it.

rjh01 · 3rd May 2012, 05:39 PM

Originally Posted by Madalch

So they have to pay out $5 million. Is this really going to make much of a dent in their bottom line? Will they actually bother changing their claims?

They pay out $5m to people who will not buy their products any more. These people then tell other people how useless the product is. So no, it is not just $5m. It is reputation.

Asolepius · 4th May 2012, 08:27 AM

Ducks might be slightly cheered up.

Mojo · 4th May 2012, 08:59 AM

Originally Posted by Asolepius

Ducks might be slightly cheered up.

1X10^-400 of a duck, anyway.

Mojo · 4th May 2012, 09:08 AM

Originally Posted by Madalch

So they have to pay out $5 million. Is this really going to make much of a dent in their bottom line? Will they actually bother changing their claims?

According to the Quackometer, relabelling will cost them another $7 million.

rjh01 · 4th May 2012, 09:15 PM

Originally Posted by Mojo

According to the Quackometer, relabelling will cost them another $7 million.

Worse the shares have been hit hard. From the quoted link

Quote:

Over the past year, Boiron stock had been trading at over $30. After suits were filed, the price dropped to below $20. This morning, there is a little recovery to about $22

Not something a shareholder would want to see. They may react.

Orphia Nay · 4th May 2012, 10:08 PM

Boiron share data:

http://www.bloomberg.com/quote/BOI:FP

Looks like the suit was filed in September. The price rose gradually again since then, then another drop when the case was settled.

Mojo · 5th May 2012, 01:25 AM

To put the amount of money this is costing them into perspective, according to Gimpy's Blog, in the first six months of 2007 their marketing costs were €47,124,000, while in the same period their research costs were €2,548,000.

Acleron · 5th May 2012, 01:25 PM

Originally Posted by Mojo

To put the amount of money this is costing them into perspective, according to Gimpy's Blog, in the first six months of 2007 their marketing costs were €47,124,000, while in the same period their research costs were €2,548,000.

You can get their latest financial report here.

Quote:

Operating income amounts to € 686 thousand against € 9,186 thousand in 2010. The decrease in activity
noticed during the second quarter and the progress in structuring costs explain the main part of the profitability
decline.

Hopefully, this has hit them at an awkward time.

geni · 5th May 2012, 01:34 PM

Hmm aren't biron slightly unique though? I can't offhand think of any other companies that operate on the same scale. Say helios in the UK seems to be far smaller.

2nd May 2012, 01:56 PM	#1
Rolfe Anti-homeopathy illuminati member Join Date: Sep 2003 Location: NT 150 511 Posts: 34,305	Boiron settles class action alleging false claims of effectiveness I haven't seen a thread on this. Boiron is apparently in the process of throwing in the towel in a class action alleging their products are nothing more than sugar pills. http://www.topclassactions.com/lawsu...ion-settlement Quote: The Boiron settlement will resolve a class action lawsuit, entitled Gallucci v. Boiron, Inc., that alleges Boiron made false claims about the effectiveness of its homeopathic products’ treatment of ailments such as the flu, arthritis, sore joints, join pain, aches, fever, coughs, insomnia or sleeplessness. According to the class action lawsuit, the active ingredients in Boiron’s products are so diluted that they are “effectively non-existent,” making them nothing more than sugar pills. The proposed Boiron class action settlement was reached after “extensive investigation and discovery” by Class Counsel, which examined approximately 400,000 documents -- including scientific articles, marketing data, sales figures, and more – and consulted with a scientific expert, court documents say. Rolfe.
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2nd May 2012, 04:36 PM	#2
Madalch The Jester Join Date: Nov 2006 Location: The wet coast. Posts: 8,694	So they have to pay out $5 million. Is this really going to make much of a dent in their bottom line? Will they actually bother changing their claims?
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2nd May 2012, 04:50 PM	#3
Beerina Sarcastic Conqueror of Notions Join Date: Mar 2004 Location: A floating island above the clouds Posts: 23,835
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2nd May 2012, 05:48 PM	#4
Gord_in_Toronto Penultimate Amazing Join Date: Jul 2006 Posts: 13,409	I wonder what this will mean for the Canadian lawsuit? http://forums.randi.org/showthread.php?p=8189590
	__________________ "Reality is what's left when you cease to believe." Philip K. Dick

3rd May 2012, 05:35 PM	#5
Almo Masterblazer Join Date: Aug 2005 Location: Montreal, Quebec Posts: 6,404	I really, really hope this is the beginning of a fail-cascade. But I doubt it.
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3rd May 2012, 05:39 PM	#6
rjh01 Gentleman of leisure Tagger Join Date: May 2005 Location: Planet Earth Posts: 17,162	Originally Posted by Madalch So they have to pay out $5 million. Is this really going to make much of a dent in their bottom line? Will they actually bother changing their claims? They pay out $5m to people who will not buy their products any more. These people then tell other people how useless the product is. So no, it is not just $5m. It is reputation.
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4th May 2012, 08:27 AM	#7
Asolepius Graduate Poster Join Date: Jul 2004 Posts: 1,166	Ducks might be slightly cheered up.
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4th May 2012, 08:59 AM	#8
Mojo Mostly harmless Join Date: Jul 2004 Location: Nor Flanden Posts: 22,059	Originally Posted by Asolepius Ducks might be slightly cheered up. 1X10^-400 of a duck, anyway.
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4th May 2012, 09:08 AM	#9
Mojo Mostly harmless Join Date: Jul 2004 Location: Nor Flanden Posts: 22,059	Originally Posted by Madalch So they have to pay out $5 million. Is this really going to make much of a dent in their bottom line? Will they actually bother changing their claims? According to the Quackometer, relabelling will cost them another $7 million.
	__________________ "You got to use your brain." - McKinley Morganfield "The poor mystic homeopaths feel like petted house-cats thrown at high flood on the breaking ice." - Leon Trotsky Last edited by Mojo; 4th May 2012 at 09:10 AM.

4th May 2012, 09:15 PM	#10
rjh01 Gentleman of leisure Tagger Join Date: May 2005 Location: Planet Earth Posts: 17,162	Originally Posted by Mojo According to the Quackometer, relabelling will cost them another $7 million. Worse the shares have been hit hard. From the quoted link Quote: Over the past year, Boiron stock had been trading at over $30. After suits were filed, the price dropped to below $20. This morning, there is a little recovery to about $22 Not something a shareholder would want to see. They may react.
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4th May 2012, 10:08 PM	#11
Orphia Nay Penguilicious Spodmaster. Tagger Join Date: May 2005 Location: Ponylandistan Presidential Palace (above the Spods' stables). Posts: 28,337	Boiron share data: http://www.bloomberg.com/quote/BOI:FP Looks like the suit was filed in September. The price rose gradually again since then, then another drop when the case was settled.
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5th May 2012, 01:25 AM	#12
Mojo Mostly harmless Join Date: Jul 2004 Location: Nor Flanden Posts: 22,059	To put the amount of money this is costing them into perspective, according to Gimpy's Blog, in the first six months of 2007 their marketing costs were €47,124,000, while in the same period their research costs were €2,548,000.
	__________________ "You got to use your brain." - McKinley Morganfield "The poor mystic homeopaths feel like petted house-cats thrown at high flood on the breaking ice." - Leon Trotsky

5th May 2012, 01:25 PM	#13
Acleron Graduate Poster Join Date: Oct 2007 Location: In a beautifully understandable universe Posts: 1,927	Originally Posted by Mojo To put the amount of money this is costing them into perspective, according to Gimpy's Blog, in the first six months of 2007 their marketing costs were €47,124,000, while in the same period their research costs were €2,548,000. You can get their latest financial report here. Quote: Operating income amounts to € 686 thousand against € 9,186 thousand in 2010. The decrease in activity noticed during the second quarter and the progress in structuring costs explain the main part of the profitability decline. Hopefully, this has hit them at an awkward time.

5th May 2012, 01:34 PM	#14
geni Anti-homeopathy illuminati member Join Date: Oct 2003 Location: UK Posts: 26,549	Hmm aren't biron slightly unique though? I can't offhand think of any other companies that operate on the same scale. Say helios in the UK seems to be far smaller.