GNC 2010 Annual Report Download - page 42

Table of Contents
California False Labeling and Consumer Fraud Claims. Beginning in May 2009, a series of false labeling and consumer fraud cases
(listed below) were filed in California in connection with label claims of non-GNC products sold in the Company's stores.
• Michael Gonzales and Zia Nawabi, et al. v. Maximum Human Performance, Inc., et al., U.S. District Court, Central District of
California, 09CV532 (filed May 5, 2009) ("Musclemeds");
• Michael Campos and Michael Gonzales, et al. v. LG Sciences, LLC, et al., Superior Court of California, for the County of Orange,
removed to U.S. District Court, Central District of California, 09CV663 (filed May 20, 2009) ("LG Sciences");
• Nicole Forlenza and Shaiden Monroe, et al. v. Dynakor Pharmacal, LLC, et al., U.S. District Court, Central District of California,
09CV3730 (filed May 26, 2009) ("Basic Research — Akävar");
• Vance Monroe and Mac Gonzales, et al. v. Biotab Nutraceuticals, Inc., et al., U.S. District Court, Southern District of California,
09CV1207 (filed June 3, 2009);
• Richard Johnson, et al. v. Vianda, LLC, et al., Superior Court of California, for the County of Los Angeles, BC 423825 (filed
October 20, 2009); and
• Michael Flores, et al. v. EP2. Inc., et al., U.S. District Court, Central District of California, 09CV7872 (filed October 28, 2009).
The LG Sciences matter was settled and dismissed in August 2009. A settlement was reached and approved by the Court in December 2009 in
the Musclemeds case. Plaintiffs in the Basic Research - Akävar case dismissed GNC with prejudice in January 2010, after which a similar
action, Shalena Dysthe, et al., v. Basic Research, et al., U.S. District Court, Central District of California, 09CV8013 (filed November 2, 2009)
was filed by a different law firm.
While only seven lawsuits of this type have been filed to date, GNC expects the number of these types of cases to grow, as we have received
four additional demand notices of similar claims. In all instances, the GNC vendors of the products at issue have agreed to defend and
indemnify GNC. Any liabilities that may arise from these matters are not probable or reasonably estimable at this time.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None. 36