A summary of Southern California-related business litigation developments during the past week.

Two Plead Guilty in Diet Scam: Two men pleaded guilty in federal court to conspiring to sell unregistered securities in a multimillion-dollar scheme in which companies invested millions of dollars in a bogus “transdermal appetite suppressant” resembling seasickness patches worn behind the ear. Jonathan D. Sterns and Mark A. Sterns admitted their complicity in the scam allegedly masterminded by their uncle, Orange County businessman David D. Sterns. He controlled several companies between 1987 and 1989 through which he distributed the bogus device known as “Le Patch.” David Sterns is accused of falsely asserting to investors that Le Patch was approved by the Food and Drug Administration. The defendants pleaded guilty to two counts of mail fraud and conspiracy. They face a maximum sentence of 10 years in prison and fines of up to $500,000. Authorities, meanwhile, say the investigation is continuing. (Case No. 90-61. Pleas entered Nov. 14, 1990).