According to the company’s $25 million advertising campaign, the Avacor Hair Regrowth System was a “clinically proven,” “all natural,” “herbal” treatment that could re-grow hair on balding men with a 90% success rate. In reality, the product was a generic version of the drug minoxidil, packaged with a shampoo and herbal tablets.
We filed a class action lawsuit on behalf of Jim Thomas and a class of more than 150,000 Avacor purchasers. We’ve represented this class for more than 10 years, chasing the company, as well as its officers, directors and shareholders, through 5 state court lawsuits, a federal lawsuit, two bankruptcy filings, and two jury trials. We won a $37 million verdict against the founder of the company and two spokespersons who appeared in its commercials. Then at a second trial, we won a $50 million verdict against two shareholders who had not participated in the first trial due to bankruptcy proceedings. After two bankruptcies and two trials, the case settled for $30 million. We shut the company down, took everything they had, and gave their assets to a trustee to sell for the benefit of class members.
Our client Jim Thomas received a $25,000 payment under the settlement. The class members he represented were paid $190 apiece.