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Drug firm settles ad lawsuit with state

Friday, July 30, 1999 | 10:25 a.m.

CARSON CITY -- Nevada will receive $766,000 in a $41.8 million settlement between 37 states and Knoll Pharmaceutical Co., and BASF Corp., in a dispute over marketing claims about a drug that treats thyroid illnesses.

Attorney General Frankie Sue Del Papa said Thursday that Knoll Pharmaceutical was accused of violating consumer protection laws in its advertising by saying the drug Synthroid was superior to other competing brands and that the company tried to suppress a report that showed Synthroid was the equivalent of other drugs.

Synthroid is used when a person's thyroid gland does not produce sufficient thyroid hormones.

Knoll did not admit any wrongdoing, but the settlement says Knoll shall not make any false, misleading or deceptive claims regarding Synthroid in its future advertisement or promotion.

In a related matter, Knoll has also reached tentative settlement in a number of class-action lawsuits in which consumers allege they suffered monetary damages as a result of Knoll's sales conduct.

Del Papa said this settlement could be worth $84 million.

If approved by the courts, individual consumers who bought Synthroid between Jan. 1, 1990, and the date the court ratifies the settlement, will be eligible for restitution.

Del Papa stressed the safety of Synthroid is not at issue, only the marketing claims.

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