Nevada to get $3 million from vitamin settlement

Thursday, May 24, 2001 | 10:41 a.m.

CARSON CITY -- Nevada will receive about $3 million in the settlement of a price-fixing suit against six international vitamin makers accused of meeting in secret for the past decade to set prices.

Nevada, 21 other states, the District of Columbia and Puerto Rico were involved in the litigation. The group will receive a total of $225.2 million.

The initial suit was filed in Washington, D.C., and Nevada brought its suit in the District Court in Carson City.

"This extraordinary settlement was achieved largely due to state attorneys general effectively organizing and intervening in this matter on a multi-state basis, thereby avoiding a protracted state-by-state litigation process," Attorney General Frankie Sue Del Papa said.

The settlement must be approved by each state before the money is released, a process that could take several months. District Judge Mike Griffin has signed an order giving preliminary approval to the settlement in Nevada.

Del Papa said $1.7 million of the Nevada settlement will be distributed to nonprofit organizations whose programs advance the health or nutrition of consumers. The state will receive $750,000 as compensation for state purchase of vitamin products. Another $1 million will reimburse Nevada businesses that were overcharged when purchasing vitamins and vitamin products.

"The preliminary approval of this settlement agreement sends a clear message that price-fixing behavior will not be tolerated by state attorneys general," Del Papa said.

Those charged with federal and state antitrust violations were F. Hoffman-LaRoche, BASF and Aventis (formerly Rhone-Poulene), all of Europe, and Takeda Chemical Industries Ltd., Eisai Co. Ltd and Daiichi Pharmaceutical Co. Ltd., all of Japan.

Vitamins made by the companies go into a wide variety of products from vitamin pills for chicken, beef and fish to foods such as milk, cereal and bread.