Herbal Supplement Firm’s Plea Could Bolster Pending Lawsuits

Nine lawsuits filed in Los Angeles County alleging that people were injured or died because of their unsuspecting use of drug-laced herbal supplements could be helped by a plea agreement reached this week with the Brea-based supplier, an attorney for the plaintiffs said Friday.

In a settlement arranged through the Orange County district attorney’s office, BotanicLab Inc. pleaded no contest Thursday to a felony charge of producing a product that posed a danger to the public. Its founders -- John Chen, his sister Sophie Chen and Allan Wang -- admitted single misdemeanors, which included advertising and selling adulterated foods. They were fined a total of $510,000.

The pleas and fines won’t end the legal battles over distribution of the herbal supplements.

The products were found to contain highly addictive prescription drugs. The lawsuits alleging wrongful death and personal injury, including one class-action suit, are pending in Los Angeles County Superior Court against BotanicLab and its founders.

The defendants had denied wrongdoing, saying the supplements were contaminated during their manufacture in China.

“We’re now reviewing the implications of the felony plea on the civil cases,” said La Jolla attorney David Markham, part of the legal team representing the plaintiffs.

The plea was important, he said, because it acknowledged that the products were harmful.