Why The Recent Indictments of Nutritional Supplement Executives Matter To All Manufacturers/Distributors

Robinson+Cole Manufacturing Law Blog

Our firm has substantial experience in representing nutritional supplement manufacturers.  For that reason, the news that the Justice Department and federal agencies (such as the FTC) is engaged in a nationwide sweep of such companies is newsworthy.  This sweep has consisted of both criminal and civil/regulatory actions that will take years to unravel.

Other manufacturers/distributors might wonder if this government action is relevant to them.  The short answer is “yes” for the following reasons:

  1. This type of sweep is not limited to nutritional supplement companies.  As reported previously in our blog, the Justice Department just recently targeted the food industry in the same manner.
  2. The Justice Department continues to indict individual executives.   In a memo published in September, the DOJ emphasized that it will continue to pursue corporate executives individually for both criminal and civil liability.
  3. The criminal indictments relate in part to the manufacturer’s supply chain.  Although the government claims that the subject of the indictments was engaged in a conspiracy with a Chinese supplier, all manufacturers/distributors are potentially responsible for the actions of their suppliers, particularly those that supply raw ingredients.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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