A federal judge in Utah has refused to let Basic Research back out of a settlement of a class-action lawsuit that claims consumers were defrauded by a weight-loss product advertised as "eat all you want & still lose weight."
U.S. District Judge Ted Stewart last week said Basic Research had agreed to a settlement during mediation and that it could not now say it had changed its mind. All key terms of the settlement had been signed by Dennis Gay, president and CEO of Basic Research, the judge wrote. In addition, the company had informed the court that a settlement had been reached.
Stewart wrote that because Basic Research had reversed itself and ended talks on final details of the settlement, "the primary question before the court is whether defendants had a change of heart after an enforceable agreement had been reached."