Hi-Tech Execs Ordered To Jail For Contempt Of Recall Order

Law360, New York (September 2, 2014, 9:14 PM EDT) -- Two directors of Hi-Tech Pharmaceuticals Inc. were ordered jailed Tuesday when a judge found that the recall of their weight loss product, part of a $40 million sanctions package, was grossly ineffective — but the judge also had harsh words for the Federal Trade Commission's "inaction."

U.S. District Judge Charles A. Pannell Jr. ordered Jared Wheat and Stephen Smith to show up for jail in Atlanta by noon Sept. 5, saying they were likely to keep slow-walking a recall unless coerced by the prospect of time behind bars. The judge said that the recall mailings looked like ads and were not...

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