Dr. David Friedman
GNC, one of the world’s largest nutrition retail stores, is being sued by the Oregon attorney general. The lawsuit accuses GNC of selling thousands of units of 22 workout and fat-burner supplement products that contains an ingredient called picamilon, also used as a prescription drug in Russia to treat anxiety. In addition, GNC is being accused of selling other workout and weight-loss supplements that contained a synthetic chemical known as BMPEA, Beta-methylphenethylamine. GNC is being accused of more than 4,000 individual violations of Oregon’s Unlawful Trade Practices Act, including failing to disclose that their products contained the chemicals and misrepresenting that the products were lawful dietary supplements. Each violation carries a maximum penalty of $25,000.00 That’s potentially a hundred million dollars in damages that GNC could be hit with!! After the law suit was filed, the news caused GNC stock to plummet 30%, from $42 down to $29. On Nov 2nd, shareholders filed a class action law suit against the franchise.