State to get $6 million in 'vitamin cartel' suit

Almost $6 million from six vitamin companies who pleaded guilty to criminal price-fixing charges will be distributed to 29 agencies and organizations throughout the state, Attorney General Christine Gregoire announced yesterday.

Washington, one 23 states that sued the companies, is the first to receive court approval of its plan to distribute the money, said Chris Jarvis, spokesman for the Attorney General's Office.

The lawsuit, which was settled in 2000, alleged that a "vitamin cartel" met secretly all over the globe to manipulate the prices of vitamins bought by consumers, state agencies, and manufacturers of food products and other commercial enterprises.

Because it was deemed impractical to refund costs to individual consumers, the funds were distributed to health and nutrition programs, and to nutritional, dietary and agricultural research efforts. The awards range from $25,000 to $829,200.

The vitamin-company lawsuit is one of four cases brought by this and other states against vitamin and drug manufacturers. Gregoire pledged yesterday to aggressively pursue companies that illegally manipulate prices and availability of products. A fifth case is under investigation, Gregoire said.

The other settled case, a price-fixing lawsuit against Mylan Laboratories, a manufacturer of two prescription drugs commonly used by the elderly, will bring in more than $322,000 to be shared by 2,650 Washington consumers who filed claims.

The drugs, lorazepam and clorazepate, are generic drugs widely used to treat anxiety and hypertension. An added $652,000 will be distributed to Washington consumers, in general, through a court-ordered plan similar to the vitamin case but not yet approved.

Two other cases are still under way. One case, filed in October but recently joined by Washington state, is against Bristol-Meyers Squibb.

Washington, with 33 other states, claims the company filed false declarations with the Food and Drug Administration to block sales of a less-expensive generic version of anti-anxiety drug BuSpar.

The second is against Aventis, manufacturer of Cardizem CD, a time-release medication used to treat chest pain, high blood pressure and heart disease. That case, also filed last year and joined by 29 states, alleges that the manufacturer conspired with the manufacturer of a generic version to keep the less-expensive drug off the market, and split profits.

Drug-company representatives were not available late yesterday for comment.

The organizations receiving the largest amounts from the vitamin-company settlement include:

• The University of Washington Foundation — Center for Public Health Nutrition: $829,200. To work with community-based organizations on obesity, nutrition and physical activity.

• City of Seattle Aging and Disability Services et al — Washington state Senior Farm Produce Program: $570,000. To improve nutritional status of low-income seniors.

• Group Health Cooperative — Health Trek — Nutrition and Media Literacy: $565,555. For a three-year nutrition-education program for health and science teachers.

• The Heart Institute of Spokane — Diet Intervention and Evaluation Trial: $471,588. To study the effects of Mediterranean and "heart-healthy" diets on heart-attack patients.

• Cross Cultural Health Care Program — Community Health and Nutrition Demonstration Project: $447,785. For nutrition and health-education programs for communities not served by other programs in Seattle and King County.

• Fred Hutchinson Cancer Research Center: $394,744. To study health risks and benefits of dietary supplements on cancer, eye, heart and bone diseases.

Carol Ostrom can be reached at 206-464-2249 or costrom@seattletimes.com.