60 Day Notice 2015-00284

AG Number: 
2015-00284
Notice PDF: 
Date Filed: 
04/10/2015
Noticing Party: 
Environmental Research Center, Inc.
Plaintiff Attorney: 
Christina M. Caro
Alleged Violators: 
SDC Nutrition, Inc.
Chemicals: 
Cadmium
Lead and lead compounds
Source: 
Dietary Supplements

60-Day Notice Document

Civil Complaint
AG Number:
2015-00284
Complaint PDF: 
Date Filed:
10/02/2015
Case Name: 
Envt'l Research Ctr. v. SDC Nutrition, Inc.
Court Name: 
Alameda County Superior Court
Court Docket Number: 
RG15788140
Plaintiff: 
Environmental Research Center, Inc.
Plaintiff Attorney: 
Christina M. Caro
Tanya A. Gulesserian
Defendant: 
SDC Nutrition, Inc.
Type of Claim: 
Failure to Warn
Preliminary / Permanent Injunction; Attorneys' Fees
Relief Sought: 
Warning
Civil Penalty
Contact Name: 
Christina M. Caro
Contact Organization: 
Adams Broadwell Joseph & Cardozo
Email Address:
Address: 
601 Gateway Blvd., Suite 1000
City, State, Zip:
South San Francisco, CA 94080
Phone Number:
650-589-1660
Fax Number:
650-589-5062
Settlement
AG Number:
2015-00284
Settlement PDF: 
Settlement Date:
12/17/2015
Case Name: 
Envt'l Research Ctr. Inc. v. SDC Nutrition, Inc.
Court Name: 
Alameda County Superior Court
Court Docket Number: 
RG15788140
Plaintiff: 
Environmental Research Center, Inc.
Plaintiff Attorney: 
Tanya A. Gulesserian
Christina M. Cao
Defendant: 
SDC Nutrition, Inc.
Injunctive Relief: 
3. INJUNCTIVE RELIEF, REFORMULATION, TESTING AND WARNINGS 3.1 Beginning on the Compliance Date, SDC shall be permanently enjoined from manufacturing for sale in the State of California, “Distributing into the State of California,” or directly selling in the State of California, any Covered Product which exposes a person to a “Daily Lead Exposure Level” of more than 0.5 micrograms per day of lead or a “Daily Cadmium Exposure Level” of more than 4.10 micrograms per day of cadmium when the maximum suggested dose is taken as directed on the Covered Product’s label, unless SDC meets the warning requirements under Section 3.2. 3.1.1 As used in this Consent Judgment, the term “Distributing into the State of California” shall mean to directly ship a Covered Product into California for sale in California or to sell a Covered Product to a distributor that SDC knows will sell the Covered Product in California. 3.1.2 For purposes of this Consent Judgment, the “Daily Lead Exposure Level” and “Daily Cadmium Exposure Level” shall be measured in micrograms, and shall be calculated using the following formula: micrograms of lead or cadmium per gram of product, multiplied by grams of product per serving of the product (using the largest serving size appearing on the product label), multiplied by servings of the product per day (using the largest number of servings in a recommended dosage appearing on the product label), which equals micrograms of lead or cadmium exposure per day. 3.2 Clear and Reasonable Warnings If SDC is required to provide a warning pursuant to Section 3.1, the following warning must be utilized: WARNING: This product contains a chemical known to the State of California to cause [cancer and] birth defects or other reproductive harm. SDC shall use the phrase “cancer and” in the warning only if the maximum daily dose recommended on the label contains more than 15 micrograms of lead as determined pursuant to the quality control methodology set forth in Section 3.4. The warning shall be securely affixed to or printed upon the container or label of each Covered Product. The warning shall be at least the same size as the largest of any other health or safety warnings also appearing on its website or on the label or container of SDC’s product packaging and the word “WARNING” shall be in all capital letters and in bold print. No other statements about Proposition 65 or lead or cadmium may accompany the warning. SDC must display the above warnings with such conspicuousness, as compared with other words, statements, or design of the label or container, as applicable, to render the warning likely to be read and understood by an ordinary individual under customary conditions of purchase or use of the product. 3.3 Reformulated Covered Products A Reformulated Covered Product is one for which the Daily Lead Exposure Level or Daily Cadmium Exposure Level when the maximum suggested dose is taken as directed on the Reformulated Covered Product’s label, contains no more than 0.5 micrograms of lead or no more than 4.10 micrograms of cadmium per day as determined by the quality control methodology described in Section 3.4. 3.4 Testing and Quality Control Methodology 3.4.1 Beginning within one year of the Compliance Date, SDC shall arrange for cadmium and/or lead testing of the Covered Products at least once a year for a minimum of three consecutive years by arranging for testing of five randomly selected samples of each of the Covered Products, in the form intended for sale to the end-user, which SDC intends to sell or is manufacturing for sale in California, directly selling to a consumer in California or “Distributing into California.” The testing requirement does not apply to any of the Covered Products for which SDC has provided the warning specified in Section 3.2. If tests conducted pursuant to this Section demonstrate that no warning is required for a Covered Product during each of three consecutive years, then the testing requirements of this Section will no longer be required as to that Covered Product. 3.4.2 For purposes of measuring the “Daily Lead Exposure Level” or “Daily Cadmium Exposure Level,” the highest lead or cadmium detection result of the five (5) randomly selected samples of the Covered Products will be controlling. 3.4.3 All testing pursuant to this Consent Judgment shall be performed using a laboratory method that complies with the performance and quality control factors appropriate for the method used, including limit of detection, qualification, accuracy, and precision that meets the following criteria: Inductively Coupled Plasma-Mass Spectrometry (“ICP-MS”) achieving a limit of quantification of less than or equal to 0.010 mg/kg or any other testing method subsequently agreed to in writing by the Parties. 3.4.4 All testing pursuant to this Consent Judgment shall be performed by an independent third party laboratory certified by the California Environmental Laboratory Accreditation Program or an independent third-party laboratory that is registered with the United States Food & Drug Administration. 3.4.5 Nothing in this Consent Judgment shall limit SDC’s ability to conduct, or require that others conduct, additional testing of the Covered Products, including the raw materials used in their manufacture. 3.4.6 Beginning on the Compliance Date and continuing for a period of three years, SDC shall provide ERC copies of test results for lead and cadmium content under Section 3.4.1 within ten business days after completion of the testing.
*Non-Contingent Civil Penalty:
$ 33,801.00
Attorney(s) Fees and Costs:
$ 35,690.00
Payment in Lieu of Penalty:
$ 25,509.00  (4.1 In full satisfaction of all potential civil penalties, payment in lieu of civil penalties, attorney’s fees, and costs, SDC shall make a total payment of $95,000 (“Total Settlement Amount”) SDC shall make a total of six (6) consecutive equal monthly payments. The first payment will be due to ERC within five (5) business days of the Effective Date (“Due Date”), each of the five subsequent monthly payments will be due on the same day of each month. SDC shall make this payment by check to ERC’s escrow account, for which ERC will give SDC the necessary account information. The Total Settlement Amount shall be apportioned as follows: 4.2 $33,801.00 shall be considered a civil penalty pursuant to California Health and Safety Code §25249.7(b)(1). ERC shall remit 75% ($25,350.75) of the civil penalty to the Office of Environmental Health Hazard Assessment (“OEHHA”) for deposit in the Safe Drinking Water and Toxic Enforcement Fund in accordance with California Health and Safety Code §25249.12(c). ERC will retain the remaining 25% ($8,450.25) of the civil penalty. 4.3 $2,837.49 shall be distributed to ERC as reimbursement to ERC for reasonable costs incurred in bringing this action. 4.4 $25,508.78 shall be distributed to ERC in lieu of further civil penalties, for its day-to-day business activities such as (1) continued enforcement of Proposition 65, which includes work, analyzing, researching and testing consumer products that may contain Proposition 65 chemicals, focusing on the same or similar type of ingestible products that are the subject matter of the current action; (2) the continued monitoring of past consent judgments and settlements to ensure companies are in compliance with Proposition 65; and (3) giving a donation of $1,275.00 to the Natural Resource Defense Council to address reducing toxic chemical exposures in California. 4.5 $1,425.00 shall be distributed to the Law Office of Christina M. Caro and $21,575.00 shall be distributed to Adams Broadwell Joseph & Cardozo as reimbursement of ERC’s attorney’s fees, while $9,852.73 shall be distributed to ERC for its in-house legal fees. )
Total Payments:
$ 95,000.00
Will settlement be submitted to court?
Yes
Contact Name: 
Christina M. Caro
Contact Organization: 
Adams Broadwell Joseph & Cardozo
Email Address:
ccaro@adamsbroadwell.com
Address: 
601 Gateway Blvd., Suite 1000
City, State, Zip:
South San Francisco, CA 94080
Phone Number:
650-589-1660
Fax Number:
650-589-5062
Judgment
AG Number:
2015-00284
Judgment PDF: 
Judgment Date:
04/06/2016
Settlement reported to AG: 
Thu, 12/17/2015
Case Name: 
Envt'l Research Ctr. v. SDC Nutrition, Inc.
Court Name: 
Alameda County Superior Court
Court Docket Number: 
RG15788140
Plaintiff: 
Environmental Research Center, Inc.
Plaintiff Attorney: 
Tanya A. Gulesserian
Christina M. Caro
Defendant: 
SDC Nutrition, Inc.
Injunctive Relief: 
3. INJUNCTIVE RELIEF,REFORMULATION,TESTING AND WARNINGS 3.1 Beginning on the Compliance Date, SDC shall be permanently enjoined from manufacturing for sale in the State of California, "Distributing Into the State of California," or directly selling In the State of California, any Covered Product which exposes a person to a "Daily Lead Exposure Level of more than 0.5 micrograms per day of lead or a "Daily Cadmium Exposure Level"' of more than 4.10 micrograms per day of cadmium when the maximum suggested dose is taken as directed on the Covered Products label, unless SDC meets the warning requirements under Section 3.2. 3.1.1 As used in this Consent Judgment, the term "Distributing into the State of California" shall mean to directly ship a Covered Product into California for sale in California or to sell a Covered Product to a distributor that SDC knows will sell the Covered Product in California. 3.1.2 For purposes of this Consent Judgment, the "Daily Lead Exposure Level" and "Daily Cadmium Exposure Level" shall be measured in micrograms,and shall be calculated using the following formula: micrograms of lead or cadmium per gram of product, multiplied by grams of product per serving of the product (using the largest serving size appearing on the product label), multiplied by servings of the product per day (using the largest number of servings in a recommended dosage appearing on the product label), which equals micrograms of lead or cadmium exposure per day. 3.2 Clear and Reasonable Warnings If SDC is required to provide a warning pursuant to Section 3.1, the following warning must be utilized: WARNING: This product contains a chemical known to the State of California to cause [cancer and] birth defects or other reproductive harm. SDC shall use the phrase "cancer and" in the warning only if the maximum daily dose recommended on the label contains more than 15 micrograms of lead as determined pursuant to the quality control methodology set forth in Section 3.4. The warning shall be securely affixed to or printed upon the container or label of each Covered Product. The warning shall be at least the same size as the largest of any other health or safety warnings also appearing on its website or on the label or container of SDC's product packaging and the word "WARNING" shall be in all capital letters and In bold print. No other statements about Proposition 65 or lead or cadmium may accompany the warning. SDC must display the above warnings with such conspicuousness, as compared with other words, statements, or design of the label or container, as applicable, to render the warning likely to be read and understood by an ordinary individual under customary conditions of purchase or use of the product. 3.3 Reformulated Covered Products A Reformulated Covered Product Is one for which the Dally Lead Exposure Level or Dally Cadmium Exposure Level when the maximum suggested dose is taken as directed on the Reformulated Covered Products label, contains no more than 0.5 micrograms of lead or no more than 4.10 micrograms of cadmium per day as determined by the quality control methodology described in Section 3.4. 3.4 Testing and Quality Control Methodology 3.4.1 Beginning within one year of the Compliance Date, SDC shall arrange for cadmium and/or lead testing of the Covered Products at least once a year for a minimum of three consecutive years by arranging for testing of five randomly selected samples of each of the Covered Products, in the form intended for sale to the end-user, which SDC intends to sell or is manufacturing for sale in California, directly selling to a consumer in California or •Distributing into California." The testing requirement does not apply to any of the Covered Products for which SDC has provided the warning specified in Section 3.2. If tests conducted pursuant to this Section demonstrate that no warning is required for a Covered Product during each of three consecutive years, then the testing requirements of this Section will no longer be required as to that Covered Product. 3.4.2 For purposes of measuring the "Daily Lead Exposure Level" or "Daily Cadmium Exposure Level," the highest lead or cadmium detection result of the five (5) randomly selected samples of the Covered Products will be controlling. 3.4.3 All testing pursuant to this Consent Judgment shall be performed using a laboratory method that complies with the performance and quality control factors appropriate for the method used, including limit of detection, qualification, accuracy, and precision that meets the following criteria: Inductively Coupled Plasma-Mass Spectrometry ("ICP-MS") achieving a limit of quantification of less than or equal to 0.010 mg/kg or any other testing method subsequently agreed to in writing by the Parties. 3.4.4 All testing pursuant to this Consent Judgment shall be performed by an independent third party laboratory certified by the California Environmental Laboratory Accreditation Program or an independent third-party laboratory that is registered with the United States Food & Drug Administration. 3.4.5 Nothing in this Consent Judgment shall limit SOC's ability to conduct, or require that others conduct, additional testing of the Covered Products, including the raw materials used in their manufacture. 3.4.6 Beginning on the Compliance Date and continuing for a period of three years, SDC shall provide ERC copies of test results for lead and cadmium content under Section 3.4.1 within ten business days after completion of the testing.
*Non-Contingent Civil Penalty:
$ 33,801.00
Attorney(s) Fees and Costs:
$ 35,690.00
Payment in Lieu of Penalty:
$ 25,509.00  ((4.1 In full satisfaction of all potential civil penalties, payment in lieu of civil penalties, attorney's fees, and costs, SDC shall make a total payment of $95,000 ("Total Settlement Amount") SDC shall make a total of six (6) consecutive equal monthly payments. The first payment will be due to ERC within five (5) business days of the Effective Date ("Due Date"), each of the five subsequent monthly payments will be due on the same day of each month. SDC shall make this payment by check to ERC's escrow account, for which ERC will give SDC the necessary account information. The Total Settlement Amount shall be apportioned as follows: 4.2 $33,801.00 shall be considered a civil penalty pursuant to California Health and Safety Code §25249.7(b)(1). ERC shall remit 75% ($25,350.75) of the civil penalty to the Office of Environmental Health Hazard Assessment ("OEHHA") for deposit in the Safe Drinking Water and Toxic Enforcement Fund in accordance with California Health and Safety Code §25249.12(c). ERC will retain the remaining 25% {$8,450.25) of the civil penalty. 4.3 $2,837.49 shall be distributed to ERC as reimbursement to ERC for reasonable costs incurred in bringing this action. 4.4 $25,508.78 shall be distributed to ERC in lieu of further civil penalties, for its day-to-day business activities such as (1) continued enforcement of Proposition 65, which includes work, analyzing, researching and testing consumer products that may contain Proposition 65 chemicals, focusing on the same or similar type of ingestible products that are the subject matter of the current action; (2) the continued monitoring of past consent judgments and settlements to ensure companies are in compliance with Proposition 65; and (3) giving a donation of $1,275.00 to the Natural Resource Defense Council to address reducing toxic chemical exposures in California. 4.5 $1,425.00 shall be distributed to the Law Office of Christina M. Caro and $21,575.00 shall be distributed to Adams Broadwell Joseph & Cardozo as reimbursement of ERC's attorney's fees, while $9,852.73 shall be distributed to ERC for its in-house legal fees.))
Total Payments:
$ 95,000.00
Is Judgment Pursuant to Settlement?
Yes
Contact Name: 
Christina M. Caro
Contact Organization: 
Adams Broadwell Joseph & Cardozo
Email Address:
ccaro@adamsbroadwell.com
Address: 
601 Gateway Blvd., Suite 1000
City, State, Zip:
South San Francisco, CA 94080
Phone Number:
650-589-1660
Fax Number:
650-589-5062


* A non-contingent civil penalty is the civil penalty that must be paid pursuant to the settlement, regardless of future events or actions of the defendant. If a settlement includes a contingent penalty, the plaintiff should report the additional penalty amount when it becomes due.