A.G. Schneiderman and Federal Trade Commission File Lawsuit Against Major Dietary Supplement Maker That Marketed Fraudulent Memory Loss Pill To Seniors

Lawsuit Charges That Quincy Bioscience Falsely Advertises Prevagen – A Widely-Sold Supplement That Costs Up To $69 Per Bottle – Claiming It Is “Clinically Shown” To Improve Memory, Yet Possesses No Scientific Evidence For These Claims  

New York AG & FTC Seek A Ban On Further False Claims About Prevagen, Restitution For Consumers, And Civil Penalties

   Attorney General Eric T. Schneiderman today announced that, jointly with the Federal Trade Commission, his office has filed a lawsuit against dietary supplement maker Quincy Bioscience, LLC and related companies and executives, charging that they deceptively market the widely-sold supplement Prevagen by falsely claiming that the product improves memory, despite lacking reliable scientific evidence to support this claim. The lawsuit, filed in the U.S. District Court for the Southern District of New York, seeks a ban on further false claims about Prevagen, restitution for consumers, disgorgement of ill-gotten gains, and civil penalties for violations of state law. 

Quincy Bioscience manufactures Prevagen and has marketed the product since 2007 through an extensive national advertising campaign targeted primarily to seniors and spanning TV, radio, print, and social media. In its advertising and in the product labeling, Quincy Bioscience claims that Prevagen is “clinically shown” to support “clearer thinking” and to “improve memory within 90 days” – yet, the primary support Quincy Bioscience has for these claims is a single study that failed to show a statistically significant improvement in the treatment group over the placebo group on any of the cognitive measures used.

According to the complaint, Quincy Bioscience’s own research demonstrates the flawed science behind its claims that Prevagen can improve memory. Quincy Bioscience developed and marketed Prevagen on the theory that its active ingredient, apoaequorin, a dietary protein, enters the human brain to supplement proteins that are lost during the natural aging process. Yet Quincy Bioscience lacks any studies showing that this orally-administered protein can cross the human blood brain barrier, and in fact, Quincy’s own studies show that the protein is rapidly digested in the stomach and broken down into amino acids like any other dietary protein.

“The marketing for Prevagen is a clear-cut fraud, from the label on the bottle to the ads airing across the country,” said Attorney General Schneiderman. “It’s particularly unacceptable that this company has targeted vulnerable citizens like seniors in its advertising for a product that costs more than a week’s groceries, but provides none of the health benefits that it claims. Quincy Bioscience must be held accountable for deliberately misleading consumers across the country.”

“The marketers of Prevagen preyed on the fears of older consumers experiencing age-related memory loss,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “Yet despite the defendants’ claims, there is no scientific proof that use of the product will improve memory or provide any other cognitive benefit.”

Prevagen, which can cost up to $69 per bottle, is sold at major retailers and pharmacies across the country, including CVS, Walgreens, Rite-Aid, the Vitamin Shoppe, and Amazon. Sales of Prevagen in the United States from 2007 through mid-2015, minus refunds, totaled $165 million.

The action announced today is one of a number of steps taken by the Attorney General to help educate the public and raise awareness of the potential for false claims involving dietary supplements. In February 2015, the Attorney General sent cease and desist letters to major dietary supplement retailers asking them to halt sales of certain herbal supplements where DNA tests failed to detect the ingredient listed on the product labels.  Later that year, the Attorney General reached settlements with GNC and Nature’s Way in which they agreed to perform DNA barcoding as part of their approach to assuring authenticity.  In September 2016, the Attorney General reached an agreement with NBTY, the herbal supplement maker for Walgreens and Walmart, to implement similar reforms.

This case is being handled by Assistant Attorneys General Kate Matuschak and Ellen J. Fried, Special Assistant Attorney General Stephen Mindell, Deputy Bureau Chief Laura J. Levine, and Bureau Chief Jane M. Azia, all of the Consumer Frauds and Protection Bureau.  The Consumer Frauds and Protection Bureau is in the Division of Economic Justice, led by Executive Deputy Attorney General Manisha M. Sheth. 

Statement By A.G. Schneiderman On Signed Agreement Between Entergy, Cuomo Administration, Riverkeeper, And NY Attorney General's Office To Decommission Indian Point Nuclear Power Plant

  “Shutting down the Indian Point power plant is a major victory for the health and safety of millions of New Yorkers, and will help kick-start the state’s clean energy future.

“For the past six years, my office has led the state’s challenge to Entergy’s request for a twenty-year extension of its license to operate Indian Point, and this agreement marks the successful culmination of our work to address the serious health and safety risks that the plant poses to neighboring communities. 

“This agreement puts in place several important safety provisions that go beyond federal requirements to ensure that Indian Point operates as safely as possible as it transitions to a timely shut down. These measures include new requirements for safer storage of spent nuclear fuel at the plant, increased inspections to address faulty and deteriorating bolts throughout the facility, and $15 million in new funding from Entergy to support the environment in the Hudson River and neighboring communities.

“My office will vigorously monitor Entergy's compliance with today's agreement to ensure its terms are met and that our state remains a national leader on the environment. I commend Governor Cuomo for working with all stakeholders, including my office and the committed environmental advocates at Riverkeeper, to get this important deal done for New Yorkers."

Since taking office in 2011, A.G. Schneiderman has continuously advocated for improving safety conditions at the Indian Point facility, and has led the state’s challenge to Entergy’s application before the Nuclear Regulatory Commission for an extended 20-year license to operate the Indian Point plant. 

In March 2011, the A.G’s office filed a petition with the NRC requesting the Commission take action against Entergy for violating numerous fire safety regulations for which the company was seeking exemptions from compliance. In July 2011, the Commission accepted the A.G.’s petition, and in February 2012, the Commission denied Entergy’s request for exemptions from more than 100 fire safety requirements that overlapped with those listed in the petition.   

Following the earthquake and tsunami that caused a major nuclear accident at Fukushima, Japan in March 2011, the A.G’s office petitioned the NRC to address the risk of seismic events causing a nuclear accident at Indian Point, which is located in an area of seismic activity. In response the Commission began implementing a stepped-up program to manage seismic risk at nuclear power plants.  

Over the past five years, the A.G’s office has successfully enforced laws – over challenges raised by Entergy – requiring federal regulators to take into consideration New York’s policies protecting critical coastal resources as part of the relicensing application process for Indian Point.

COUNCIL TRANSPORTATION CHAIR RODRIGUEZ CONDEMNS LATEST FATAL HIT AND RUN OF 2017

  An elderly man was reportedly killed by a truck driver in Williamsburg this afternoon, the latest victim in a string of fatal hit and run crashes to start 2017. Council Transportation Chair Ydanis Rodriguez, who earlier this month introduced and announced legislation aimed at catching and convicting hit and run drivers in NYC through an alert system and a reward fund, issued this statement in response:

"The loss of another life on our streets from a cowardly and reckless driver pains me deeply. It is unconscionable that a driver would leave someone dying on the street without staying to see if they are ok to get help. This action is unacceptable and we as a city must do everything we can to see that this and all hit and run drivers are brought to justice. I ask that my fellow New Yorkers be part of the solution by helping to identify this driver and help us to eradicate hit and runs from our streets, because just one is too many."

News From Assemblyman Jeffrey Dinowitz

Dinowitz Named Chair of Assembly Committee on Corporations, Authorities and Commissions

  Veteran Bronx Assembly Member tapped to lead influential committee tasked with oversight of Metropolitan Transportation Authority, state's telecommunications and energy infrastructure

 

Dinowitz pledges "full accountability" of MTA

 

  Looking to build upon ongoing efforts to improve the lives of Bronxites and all New York residents and hold government agencies accountable, Assembly Member Jeffrey Dinowitz this week was named the Chair of the State Assembly's Committee on Corporations, Authorities and Commissions. Dinowitz is pledging to use the influential new post to increase oversight and accountability of the Metropolitan Transportation Authority (MTA), which falls under the committee's purview, in light of the recent LIRR train derailment in Brooklyn, and ongoing concerns over limited public transportation options, particularly in the outer boroughs.

"I'm honored that Assembly Speaker Carl E. Heastie has entrusted me with this enormous responsibility," said Assembly Member Jeffrey Dinowitz. "The work of the Committee on Corporations, Authorities and Commissions touches the lives of every New Yorker, from the trains we ride to the phones in our pockets and the utilities we pay for. I intend to use this new role to ensure full accountability of the MTA and all the public entities we rely on every day."

 

Assembly Member Dinowitz received word of the new committee assignment as legislators gathered in Albany this month for the start of the 2017 legislative session. The Bronx official replaces outgoing Chair James Brennan, who in May announced his retirement. Dinowitz most recently chaired the Assembly's Consumer Affairs and Protection Committee.

 

As Chair of the Committee on Corporations, Authorities and Commissions, Dinowitz will have jurisdiction over the laws concerning private, not-for-profit and public corporations in the state. This includes both the Public Service Commission, which monitors New York telecommunications and utilities, and, most notably, the MTA and its many sub agencies.

 

Dinowitz' appointment comes at a critical time for the nation's largest transit system. The MTA continues to face criticism following the derailment of a Brooklyn-bound Long Island Rail Road train that injured more than 100 commuters last week. Meanwhile, the agency is weathering the fallout from a report late last month that the engineer involved in the deadly 2013 Metro North crash in Dinowitz's Bronx district was given a lifetime pension. In the aftermath of both incidents, Dinowitz is pledging to apply rigorous oversight to the MTA.

 

Dinowitz also intends to use the new post to address the persistent transit woes in the borough widely considered to be a transportation desert. A major component of the committee's work in recent years has been the oversight of the ongoing 2015-2019 MTA Capital Program. While the agency recently saw the successful on-time opening of Phase I of the Second Avenue Subway, questions linger about funding for future extensions of the line, as well as other big-ticket transit projects in the city.

Assemblyman Dinowitz Applauds Decision to Close Indian Point

            Assemblyman Jeffrey Dinowitz(D-Bronx), a longtime opponent of Indian Point Nuclear facility, applauds the recent deal made with Entergy Corporation, the facilities operator, to permanently close it by 2021.

Problems and incidents have plagued the facility, located in Westchester, for years including one as recently as February 2016 when a leak in the facility was revealed after radioactivity was detected in the groundwater beneath the plant. Governor Cuomo was forced to make a statement that this leak posed no immediate danger to public health and had not migrated off site, but this incident was merely the latest in a string of mishaps and problems that have occurred at Indian Point since it began operating in 1974.

Assemblyman Dinowitz has long opposed the plants continued operation given the facility’s problems and its proximity to the one of the most populous metropolitan areas on the planet.  In 2012, the Assemblyman opposed Entergy being granted an exemption from fire safety requirements  by the Nuclear Regulatory Commission without a public hearing, and filed a brief in the Second Circuit Court of Appeals.

“I have never opposed nor do I now oppose the use of nuclear energy or nuclear power plants. However, the consistent problems that Indian Point has had, the proximity of the facility to New York City, and concerns over safety procedures have caused me to oppose the continued operation of the plant. I am pleased that Entergy has made the decision to close the plant,” said Assemblyman Dinowitz.

SENATOR JEFF KLEIN AND ASSEMBLYMAN LUIS SEPULVEDA HOST 4TH ANNUAL THREE KINGS CELEBRATION

In celebration of the Feast of the Epiphany, Senator Jeff Klein and Assemblyman Luis Sepulveda, hosted their Fourth Annual Three Kings Day event with District Leader Julia Rodriguez on Saturday. Nearly 200 participants enjoyed lunch, a magic show, chorus music, and a performance of the Nativity scene by the Holy Family Church choir.  Children in attendance received special toys, such as art sets doctor kits, stuffed animals, toy cars, puzzles, sporting equipment, and board games.

“Every year I look forward to hosting this celebration, which has become a cherished tradition for our Bronx families. Today we joined with our family, friends, neighbors, and community leaders to celebrate Three Kings Day and reflect on its significance.  I wish everyone health, joy and prosperity in the New Year,” said Senator Klein.

Three Kings Day commemorates the biblical story of the Three Kings, also known as the Three Wise Men, who followed the star of Bethlehem to bring gifts of gold, frankincense, and myrrh to baby Jesus.

“It’s both heartwarming and satisfying to see not only a great holiday tradition re-enacted so well, but also seeing the excitement and joy on children’s faces as they receive their presents. It makes all the effort that goes into this annual event so worth it. I want to thank everyone who worked so hard behind the scenes, and those who played all the characters in the production. Well done!” said Assemblyman Sepulveda.

“I am really happy that Senator Klein and Assemblyman Sepulveda are doing this for our area.  Despite the weather, many families came to enjoy a great day and organized event,” said District Leader Julia Rodriguez.

MAYOR DE BLASIO AND FIRE COMMISSIONER NIGRO ANNOUNCE FEWEST FIRE DEATHS EVER RECORDED IN 2016

48 Fire Deaths in City – Lowest in 100 Years

Serious Fires Decreased 9% in 2016 – Biggest One-Year Drop Since 2008

   Mayor Bill de Blasio and Fire Commissioner Daniel A. Nigro today announced that 48 people died in fires last year - the fewest fire deaths ever recorded in any calendar year dating back to 1916.  The city also saw a 9 percent decline in serious fires in 2016, the largest annual decrease since 2008.

The Mayor and Fire Commissioner also announced that response times to fires and life-threatening medical emergencies also improved last year – dropping 5 seconds for fires and 21 seconds for medical calls.

The Mayor and Commissioner also announced early completion of the nation’s largest smoke alarm giveaway/installation program – GetAlarmedNYC – with more than 100,000 combination smoke/carbon monoxide detectors distributed in 2016 to tens of thousands of New Yorkers. The $4 million citywide program was announced in October of 2015, and projected to take two years to complete but has reached and exceeded its goal with more than 113,000 alarms distributed as of last month. Along with partners from the City Council, the FDNY Foundation, the American Red Cross and device manufacturer Kidde, the program targeted communities most at risk for fires and fire-related injuries and deaths.

“Never has our city been as safe from the ravages of fire as we are today, thanks to the heroic work of our firefighters and all FDNY personnel,” said Mayor de Blasio.  “This record-breaking, historic achievement is the result of true teamwork by our fire and EMS first responders, fire marshals and dispatchers, as well as inspectors and fire safety educators who helped reduce serious fires by 9 percent this year. Together, these hard working FDNY members have made a tremendous impact on our city and ushered in a new era for fire safety for all New Yorkers.”

“We pushed ourselves to save even more lives in 2016 – embarking on a life-saving citywide smoke alarm program that has reached tens of thousands of homes – and we’ve seen the outstanding results with a historic 100-year low for fire fatalities in our city,” said Commissioner Nigro. “I’m very proud of all our fire and EMS members who worked hard this year to achieve this historic milestone, and – as we enter a new year – we commit again to doing all we can to protect, serve and educate New Yorkers to keep them safe from fire.”

"New York City’s Bravest provide lifesaving services to New Yorkers and this record decline in fire deaths and serious fires is a testament to the dedicated, around the clock work of all of our firefighters, EMTs, paramedics, dispatchers, and fire inspectors,”  said Speaker Melissa Mark-Viverito. “From conducting critical outreach to prevent fires, to quickly responding to emergencies and partnering with the City Council on the nation’s largest smoke alarm giveaway and installation program, I commend Commissioner Nigro and the FDNY for their heroic work to keep New Yorkers safe.”

"All of us owe thanks to the men and women of the FDNY for effectively reducing the tragedies caused by serious fires in the city,” said Council Member Andrew Cohen. “I hosted successful smoke/CO detector giveaways in my district during the past year and also awarded a citation to a well-trained veteran of the FDNY from my district who memorably saved a life with a heroic rope rescue during an Upper East Side fire in October.  It was a great year for the FDNY, indeed."

 “I commend Fire Commissioner Daniel Nigro and the men and women of the FDNY for the tremendous accomplishments announced today,” said Council Member Vanessa L. Gibson. “Thanks to quicker emergency response times and a focus on fire education and prevention, New Yorkers are safer than they have been in over a century. I thank Mayor de Blasio and the Administration for supporting the FDNY and our ongoing efforts to improve the safety of all New Yorkers.”

"I'd like to thank Mayor de Blasio and FDNY Commissioner Nigro for their dedication to fire safety and the reduction of response times, particularly the drop of 21 seconds for emergency medical calls," said Council Member Donovan Richards. "In life-threatening situations, every second counts and could be the difference in a tragedy or a miracle. I'd also like to acknowledge GetAlarmedNYC, which ensured that more than 100,000 New Yorkers have brand new smoke and carbon monoxide detectors protecting their families when they go to sleep at night."

CIVILIAN FIRE DEATHS

The 48 fire deaths in 2016 represented a 19 percent decline from 2015, when there were 59 deaths, continuing a trend over the last decade with fewer than 100 deaths annually in the city. The deadliest year in New York City for fires was 1970, when 310 people died.

The causes of last year’s fire deaths, as determined by Fire Marshals, are as follows:

Electrical                     14        (power strips and/or extension cords accounted for fires in 9 deaths)

Smoking                      12

Cooking                      11       

Incendiary                   3

Open flame                 2

Incense                        2

Liquid/gas ignition       2

Hot object                   1

Under investigation    1

DECREASES IN SERIOUS, STRUCTURAL AND NON-STRUCTURAL FIRES

There were 2,313 serious fires in 2016 compared to 2015, when there were 2,545 (232 fewer for a decline of 9.1 percent). Serious fires escalate to the point of requiring a full one-alarm assignment or higher (i.e., multiple alarm), consisting of a dozen fire units to respond, conduct search/rescue operations and extinguish the fire.

There were 26,491 structural fires in 2016 – down 3.3 percent from 2015 when there were 27,403. Structural fires occur in buildings of all types and involve an incipient fire, without escalation to a serious fire, as described above.

Fire units responded to 18 percent fewer non-structural fires in 2016 compared to 2015 (14,734 in 2016 versus 18,073 in 2015) – or 3,339 fewer fires.

RECORD HIGH NUMBER OF EMS INCIDENTS

FDNY EMS responded to a new record high number of medical emergencies in 2016 - 1,440,268 – up slightly from 2015 when they answered 1,435,315 calls, or a 0.3% increase.

EMS responses fall into one of two broad categories – Segment 1-3 which include life-threatening emergencies such as cardiac arrest, unconscious and choking calls,  and Segment 4-8 incidents which are triaged as non-life-threatening incidents.

FDNY EMS responded to 562,382 Segment 1-3 calls in 2016 - down from 566,210 incidents in 2015, a less than 1 percent decline.

EMS responded to 877,886 Segment 4-8 incidents, up from 869,105 in 2015, a 1 percent increase.

FASTER RESPONSE TIMES

End-to-end Fire unit response times were 5 seconds faster on average to structural fires that are reported through the 911 system in 2016 than in 2015 (4:52 versus 4:57).

End-to-end EMS response times were 21 seconds faster on average to Segment 1-3 calls (8:59 in 2016 versus 9:20 in 2015).

End-to-end combined response times to Segment 1-3 medical emergencies (where either a fire unit or EMS ambulance responded) improved 18 seconds (8:08 in 2016 versus 8:26 in 2015).

Senator Diaz and Assemblyman Sepulveda Help Resolve Maintenance Fee Hikes for Parkchester Residents and Introduce Bill of Rights for Condo Owners

  Senator Reverend Ruben Diaz and Assemblyman Luis Sepulveda received a round of applause at a Town Hall Meeting with residents of Parkchester South Condominiums, ending a months-long battle over a 15.19 percent increase in maintenance fees for capital improvements.

During the January 5, 2017 meeting, a great majority of those present registered their public support for the pending lawsuit to be settled out of court. During an extensive question and answer period, condo-owners were satisfied to learn that those who are having financial difficulties will be able to extend this increased payments over a period of four years.

Parkchester residents were also relieved to learn that a Bill of Rights for Condominium Owners (Senate Bill 510) has been introduced this week by Senator Diaz, and is being carried in the Assembly by Assemblyman Sepulveda.

Senator Diaz stated: "I appreciate all of the legal work because we have prevented evictions.  We have also helped Parkchester residents who cannot handle an $80 - $120 a month increase over a 2-year period will now be able to have this increase stretched over time. I am delighted that so many Parkchester residents want us to hold more of these meetings. This will show Parkchester's Board that the people are paying attention, that transparency matters, and that the Board will be held accountable. Assemblyman Sepulveda and I realize that condo-owners who live in not-for-profit condos like the Parkchester South Condominiums need more protection.  As lawmakers, during this very first week of Session for 2017, we have submitted legislation called a Bill of Rights for Condo Owners."

Assemblyman Sepulveda stated: "We have shown the Parkchester board of directors that we will not stand idly by without protecting the rights of minority owners. This is only a first step in having our sway over our rights. We will be heard!"

He continued to speak on the Condominium Owners' Bill of Rights: "Hopefully, this will address the inequities surrounding condominium corporations controlled by large equity partners, and finally bring some fairness to individual owners who now find their voices unheard."

STATEMENT FROM BP DIAZ RE: Gov. Cuomo's 'State of the State'

  "Governor Cuomo laid out an aggressive agenda for our city and our state in his speech today, and his plan to support our middle class while also cementing New York’s place as a national progressive leader is something the people of my borough and I stand behind.

“I am also thrilled that Governor Cuomo has offered his support to major Bronx proposals and institutions, specifically the reconstruction of Orchard Beach and the future of the Kingsbridge Armory. These projects are top priorities of my administration and have the overwhelming support of Bronx residents. However, we continue to see a lack of partnership and enthusiasm for them from City Hall. Strong backing from Albany will allow them to prosper. We can only hope now that the administration will see the wisdom in bringing these projects to fruition.

“Governor Cuomo once again showed us today that he cares about the people of The Bronx. This borough is grateful to have such a friend in the governor’s mansion, and we look forward to working with Governor Cuomo to move these projects and his broader agenda forward for the benefit of our borough, our city and this state,” said Bronx Borough President Ruben Diaz Jr.