Atrium Innovations Supports Its Subsidiary, Garden of Life, as it Challenges a Proceeding taken by the U.S. Federal Trade Commission

Oct 03, 2011, 17:30 ET from ATRIUM INNOVATIONS INC.

Company has Proactively Dealt with Situation and Stands Behind its Products

QUEBEC CITY, Oct. 3, 2011 /PRNewswire/ - Atrium Innovations Inc. (TSX: ATB), a globally-recognized leader in the development, manufacturing, and commercialization of innovative, science-based dietary supplements endorsed by health professionals, announced today that its subsidiary, Garden of Life, LLC (GOL), intends to defend itself against a proceeding taken by the U.S. Federal Trade Commission (FTC).

In a motion unsealed today in the United States federal courts, the FTC alleges that GOL and Jordan S. Rubin, the founder of the business, violated a Consent Decree, or a settlement between the parties, entered into in March 2006. Atrium acquired Garden of Life's business in September 2009.

In its filing, the FTC contends that GOL has made certain misleading marketing claims on four of its products launched during the first half of 2009. GOL maintains that in its normal course of business, it has addressed the issues set forward by the FTC in respect of the 2006 Consent Decree.

The FTC informed GOL and Jordan Rubin of the allegations that are the subject of the current proceedings in August, 2011 and the parties have attempted to negotiate a settlement since then.

Based on the total revenues generated by the four products in question since their respective launch dates, the FTC has demanded an amount of up to $20.9 million from GOL and Jordan Rubin, and certain ancillary measures. As part of its acquisition of Garden of Life, Atrium was indemnified for damages sustained by Atrium as a result, among others, of a breach of the original Consent Decree, including potential monetary compensation payable to the FTC and certain related costs of this process.

"We are extremely disappointed by the allegations made by the FTC concerning four products out of a family of 150, particularly in view of GOL's proactive measures to address the issues in question. We fully support Garden of Life and continue to believe that they adhere to the highest standards in terms of product development and product marketing claims in our industry. To demonstrate that we unconditionally stand behind our products, GOL has proposed to the FTC to proceed with a full consumer redress program for customers who believe they were misled but the FTC rejected this offer," said Pierre Fitzgibbon, President and CEO of Atrium.

About Atrium

Atrium Innovations Inc. is a globally-recognized leader in the development, manufacturing, and commercialization of innovative, science-based natural health products endorsed by health professionals. The Company distributes its extensive portfolio of products mainly in the healthcare practitioner and health food and specialized store channels, with a primary focus in North America and Europe. Atrium is at the forefront of science, innovation and education in the dietary supplement industry.  The Company has over 1,100 employees and operates eight manufacturing facilities. Additional information is available at

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