November 20, 2009

$50 Million Trial Verdict In Avacor Case

The Problem

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.

What We Did

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.

What Our Clients Got

Our client Jim Thomas received a $25,000 payment under the settlement.  The class members he represented were paid $190 apiece.