42.  American Urological Clinic, et al., Civil No. 1:98-CV-2199 (JOS) (N.D. Ga. filed August 6, 1998)

Respondents: David A. Brady, American Urological Corporation, The Institute of Sexual Research, Inc., The Clinic for Natural Solutions, Inc., Old Well Corporation (Texas),The Institute of Sexual Research, Ltd., and Old Well Corporation (North Carolina)

Type:  Deceptive Health Claims

Respondents used Internet Web sites and direct mail to market Viagra-like products for $39.45 to $98.95. They sold their products under the names "Alprostaglandin®," "The Celldenaphil-pc System," "Renak-pc." "Oral Phentalomil®," "Prosta-Gen©," "Testosterone-21," "Väegra®," "Urophil," and "VasoGenitine." According to the Commission, the defendants misrepresented that their products had been developed by legitimate medical enterprises and that clinical studies proved that the products effectively eliminated impotence in 68 to 94 percent of men.

The Commission filed its case on August 3, 1998, and the U.S. District Court for the Northern District of Georgia (in Atlanta) granted the Commission’s motion for a TRO and a freeze over the assets of Brady and his companies

On April 29, 1999, the Court approved a final stipulated order against the defendants. The settlement imposes an $18.5 million judgment on the defendants for consumer redress, which they will satisfy by giving up more than $2 million in frozen assets. The Order prevents them from selling their customer lists and requires Brady to obtain a $6 million bond before promoting, offering for sale, and selling any impotence treatment product. It also requires him to post a $1 million performance bond for the first five years if he makes claims about the performance, safety, efficacy or health benefits of a food, dietary supplement, or drug other than a product to treat impotence. The performance bond would decrease after five years and be eliminated in the tenth year.

Finally, the Order prohibits the defendants from (1) misrepresenting whether certain organizations have reviewed or approved any product or ingredient, (2) misrepresenting the nature or extent of the scientific evidence concerning any impotence treatment product, and (3) making unsubstantiated claims about the performance, safety, efficacy, approval or health benefits of any food, dietary supplement, or drug.

http://www.ftc.gov/opa/1998/9808/brady.htm (press release - complaint)