Consumer Drug Corporation

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OJ.

CONSUMER DRUG CORPORATION, ET AL.

ORDER, ETC. , I REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7362. Cmnplaint, Jan. 195.'- Decislon, May 20, 1959 Order dismissing', following' dissolution of respondent corpol ation, complaint charging' drug distributors in Portland, Oreg' with advertising' falsely that their "Oragen" tablets enabled obese persons to lose a pound of weight a day.

Before Mr. Earl J. Kolb hearing examiner. 1vlr. Be'Tyman Davis for the Commission. Mr. A,.thu1" D. He1'Tick of New York, K. for respondents. INITIAL DECISION DISMISSING THE COMPLAINT This proceeding- is before the hearing examiner upon motion of counsel for respondents to dismiss the complaint; amended motion to dismiss; answer to motion and amended motion filed by counsel supporting the complaint; reply memorandum filed by counsel for respondents; and answer to reply memorandum filed by counsel supporting- the complaint. It appears that prior to the issuance of the complaint in this proceeding, the assets of the corporation respondent, Consumer Drug Corporation, were sold to Consumer Laboratories, Inc. , a corporation, and on February 1 G, 1959 , Certificate of Dissolution of said corporate respondent was issued by the Corporation Commissioner of the State of Oregon.

In addition to the corporate respondent, Harold S. Heldfond Robert C. Heldfond, and Henry Cohen were named respondents both individually and as offcers of said corporate respondent. Of these three individual respondents only respondent Harold S. Heldfond is connected with the new corporation. While he owns 110 stock in the new corporation, he is president and clireeior of said corporation.

In his answer to said motion to dismiss, counsel supporting the complaint stated that he had no objection to dismissal of the complaint as to the corporate respondent and as to the individual respondents in their capacities as offcers of the corporate respondent, but did object to the dismissal of the complaint against Decision 55 F.

the three individual respondents in their individual capacities, The record, however, indicates that only the respondent Harold S. Heldfond has any connection with the new corporation and that the remaining individual respondents have no interest in said matter at the present time, The hearing examiner has considered said motion to dismiss and the other documents filed by the parties in connection therewith, and the record herein, and is of the opinion that it would not be in the public interest to litigate this proceeding as to the individual respondent Harold S. Helclond for the purpose of determining his liability as an offcer of the corporate respondent, Consumer Drug Corporation, for acts and practices performed prior to the dissolution of said corporation. It is therefore ordered That the complaint in this proceeding be dismissed without prejudice as to the respondent Consumer Drug Corporation, a corporation, Harold S. Heldfond, Robert C. Heldfond, and Henry Cohen, individually and as offcers of said corporation.

DECISION OF THE COMMISSION Pursuant to Section 3. 21 of the Commission s Rldes of Practice, the initial decision of the hearing examiner shall, on the 20th day of May 1959, become the decision of the Commission. NORTH BERWICK CO" ET AI,. 1831 Decision