Nature’s Way Supplements Class Action Settles For $3.4M

The maker of Nature’s Way supplements has agreed to pay out nearly $3.4 million to settle a class action lawsuit over claims about the effectiveness of its ginkgo biloba pills.

Schwabe North American Inc., parent company of Nature’s Way Products, and lead plaintiff Kathleen Sonner submitted a joint motion for preliminary approval of a proposed settlement between them in U.S. District Court in California on August 26.

At issue are claims by Sonner and the other Class Members that Nature’s Way Ginkgold and Ginkgold Max failed to deliver on promises to improve cognitive health and performance.

Under the terms of the proposed settlement, Schwabe will award either $18 or $33 per bottle of the ginkgo biloba pills purchased in California after July 2011 or nationwide after January 2016, “based on a blended average of the retail prices actually paid by consumers.”

Class Members who have proof of purchase will be fully refunded for the eligible Nature’s Way supplements. Those who don’t have proof of purchase will be refunded for as many as three units.

It is unclear how many Class Members there are, but if there are more than the settlement can refund under the terms, the individual awards will be reduced.

As lead plaintiff, Sonner will receive an extra $5,000 payment. The settlement also sets a cap of $400,000 to cover the cost of administering and distributing the Class awards. Lawyers for the plaintiffs will be paid 33% of the total settlement amount.

If there is any money left after the plaintiffs have been refunded and expenses and lawyers paid, it will be divided among the Class Members to a maximum of refunding them for up to five bottles of the ginkgo biloba pills. Any funds left after that will be donated to the American Brain Foundation.

In addition to the monetary settlement, Schwabe “has significantly changed its labels for Ginkgold” and removed all imagery and words indicating the Nature’s Way supplements treat cognitive diseases, according to the motion for approval.

Sonner filed the class action lawsuit against Schwabe and Nature’s Way’s in 2015. In it, she alleged the company’s national marketing campaign for Ginkgold products claimed the ginkgo biloba pills could provide “actual, meaningful and significant health benefits for the memory, concentration, mental sharpness and overall brain health” without having any credible scientific evidence to back that up.

“Numerous scientifically valid studies, performed by independent researchers and published in reputable medical journals, have been conducted … and they have universally demonstrated that ginkgo biloba does not improve brain function, and is not effective in the treatment or improvement of memory problems or cognitive health,” the class action lawsuit said.

Schwabe tried unsuccessfully to get the case dismissed early on, but then in February 2017, U.S. District Judge Virginia A. Phillips ruled in the company’s favor, deciding Sonner had failed to provide evidence Schwabe was guilty of false advertising.

Nature’s Way had presented studies demonstrating the beneficial effects of Ginkgold, and Sonner had failed to offer a “principled, supported” challenge to that evidence, the judge said.

The plaintiffs appealed that decision and the case was resurrected by the Ninth Circuit in December 2018.

The proposed settlement “was reached after very hard-fought litigation spanning over five years,” the two sides said in their joint motion for preliminary approval. They participated in three mediation sessions, the most recent of which were in February and April. A basic, tentative agreement was reached in July.

“Every aspect of this settlement was heavily negotiated, including the overall dollar amount,” the motion says.

Now Sonner and Schwabe must wait while the court reviews the proposed settlement and considers whether to approve it.

“Any continued litigation would be time-consuming and expensive and may not obtain any more than is immediately available through the settlement,” the motion for preliminary approval says.  “In fact, there is a very real risk the settlement class may receive nothing.”

Have you purchased Nature’s Way Ginkgold and Ginkgold Max believing it could improve your cognitive performance? Were you disappointed by the results? Tell us about it in the comment section below.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

Class Members in the Sonner class action lawsuit are represented by Timothy G. Blood, Leslie E. Hurst, Thomas J. O’Reardon II and Paula R. Brown of Blood Hurst & O’Reardon LLP and Todd D. Carpenter of Carlson Lynch LLP.

The Nature’s Way Supplements Class Action Lawsuit is Kathleen Sonner, et al. v. Schwabe North America Inc., et al., Case No. 5:15-cv-01358, in the U.S. District Court for the Central District of California.

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