They say that there are about 60-80 lawsuits involving Muscletech and Hydroxycut's that contain ephedra. There are also class action lawsuits from states about these issues. They is no way that Muscletech can even afford to fight these, let alone pay any judgement, regardless of what it was. With AST Sports Science declaring bankruptcy in their Dymetadrene Extreme case, and that care going to a jury and a jury awarding the plantiff $6 million dollars, it can be reasonably assumed that Muscletech will lose a few of these cases, regardless of the proof that ephedra is the cause of anything, but just by jury sympathy. Add the the fact that each case going to a jury trail, and going through the motions, and depositions can cost upwards of $500,000 per case just in fees, and you understand what is going on.
Two year back, Iovate, or rather eight different Iovates, allegedly, were created for various aspects of the supplement company. Muscletech has no assetts at all, most likely, and the name was probably already leased to Iovate. By declaring bankruptcy, the most they will get is whatever the name is being leased for, which is probably a minimum amount (let's say $500,000 a year), which covers nothing in the scope of things.
Iovate, which owns Muscletech's name, will not be affected by this at all.
Until the laws be changed that prevent something like this, and it happens all of the time, to many companies, oh well.
AST Sports Science is running quite nicely, after avoiding all of the lawsuits and other debts. Not bad for the owners of the companies...
