Hi-Tech Pharmaceuticals Files Lawsuits against Iovate and AllMax over Racketeer Influenced and Corrupt Organizations (RICO) and Protein Spiking Allegations

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Jun 03, 2016, 07:00 ET

ATLANTA, June 3, 2016 /PRNewswire/ -- Protein supplement maker Hi-Tech Pharmaceuticals, Inc. says rivals Iovate and AllMax artificially inflated the level of protein in their protein products and then lies to consumers about it, violating federal competition and state consumer protection laws, according to two complaints filed in Georgia federal court. The lawsuits further alleges violations of the Racketeer Influenced and Corrupt Organizations (RICO) act and protein spiking allegations involving Iovate and AllMax Sports Nutrition's protein supplements.

The Iovate lawsuit alleges that Iovate and its CEO Paul Gardiner were engaged in a scheme to defraud consumers as to the MuscleTech NitroTech, MuscleTech Phase8, MuscleTech Platinum 100% Whey, MuscleTech Platinum 100% Iso-Whey, Six Star Whey Protein Plus, Six Star Protein Shakes, Six Star Recovery Protein, Six Star Whey Isolate Plus, and EPIQ Isolate protein powders product's content, quality, characteristics, and/or ingredients, and caused and enabled consumers to purchase Iovate's products instead of Hi-Tech's NitroPro® product.

The lawsuit's allegations include that Iovate's label makes misleading claims about its protein content. For example, the labeling claims that the product contains certain amounts of protein per serving; however, this figure allegedly also includes various amino acids and; the non-amino acid compound, Creatine Monohydrate.

The Allmax lawsuit alleges that Allmax and its CEO Michael Kichuk were engaged in a scheme to defraud consumers as to the AllMax Ultra-Premium 6 Protein Blend HexaPro protein powders product's content, quality, characteristics, and/or ingredients, and caused and enabled consumers to purchase Allmax's products instead of Hi-Tech's NitroPro® product.

The lawsuits also allege, "In furtherance of this scheme, Iovate and Allmax used the Internet to disseminate its false product claims to consumers across the United States, and to enable consumers to purchase Iovate and AllMax's products online. They also used the U.S. Mail and/or other interstate carriers to ship the products to consumers throughout the United States in violation of 18 U.S.C. Section 1341." The suit further alleges, "Defendants have conspired to conduct and participate in the conduct of the affairs of the enterprise through a pattern of racketeering activity. That conduct constitutes conspiracy to violate Racketeer Influenced and Corrupt Organizations (RICO) 18 U.S.C. Section 1962(c), in violation of 18 U.S.C. Section 1962(d)." Passed the year after The Godfather was published, RICO is part of a 1970 law designed to allows plaintiffs to bring civil lawsuits against organizations whose members allegedly committed crimes.

Hi-Tech Pharmaceuticals lawsuits allege that Iovate and Allmax's Protein products do not contain the quantity of protein as claimed on the product's label, and also alleges the use of non-protein ingredients in protein supplement products due to a process known as "protein-spiking." These ingredients are added to increase a protein product's nitrogen content while allowing the manufacturer to save on protein manufacturing costs. A popularly used protein content test uses nitrogen as a measure of protein; therefore, protein spiking serves to fool consumers into believing they are receiving more whey protein than is actually contained in the product.

About Hi-Tech Pharmaceuticals

Hi-Tech Pharmaceuticals (https://www.hitechpharma.com/index.htm) is a leading Sports Nutrition manufacturer. Since 1979, Hi-Tech Pharmaceuticals, Inc. and its sister company, Hi-Tech Nutraceuticals, LLC. have been providing quality custom manufacturing services to the pharmaceutical, dietary supplement and beverage industries. Hi-Tech Pharmaceuticals is a cGMP certified company that operates out of Four (4) US Production facilities and (2) Warehouses, totally over 500,000 sq. ft. The two Georgia based production facilities are both located outside Atlanta in the Norcross and Suwanee Advanced Technology areas. Hi-Tech also has Two (2) facilities located outside State College, Pennsylvania. Hi-Tech holds a Drug Manufacturing License issued by the State of Pennsylvania Food and Drug Branch and is registered as a Food and Drug Establishment with the FDA in Pennsylvania.

Hi-Tech Pharmaceuticals is an enormously successful company that creates, manufactures and sells high-quality products sold by the large, major retailers across the United States. These retailers include: GNC, Vitamin Shoppe, Rite Aid, Kroger, Winn-Dixie, Albertson's, CVS, Duane Reade, Hannaford, Cardinal Health, McKesson, Mclain, Harmon Stores, Fred Meyer, Osco Drugs, Supervalu, Roundy's, Walgreens, Sav-On Drugs, Meijer, Fruth Pharmacy, Kinney Drug, Kinray, USA Drugs, A&P, Kmart, Amazon.com, Bodybuilding.com, Drugstore.com, and over 5,000 independent drug stores, as well as in more than 80,000 convenience stores throughout the United States.

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SOURCE Hi-Tech Pharmaceuticals, Inc.