Metabolife Slims Down Ephedra Settlements

Law360, New York (June 29, 2006, 12:00 AM EDT) -- Metabolife International Inc. will settle $130 million in 21 ephedra-related claims for only $4.7 million, after a federal bankruptcy judge signed off on the deal on Wednesday.

The company, a defunct diet pill manufacturer now known as MII Liquidation Inc., has been under Chapter 11 bankruptcy protection since June of 2005, after a flood of ephedra-related lawsuits were filed against the company.

The settlement will be paid entirely be the company’s insurance and will not affect the restructuring process, according to court documents.

Metabolife reached agreements...
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