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From Times Staff and Wire Reports

Terms of Jenny Craig Settlement Signed: Weight-loss center operator Jenny Craig Inc. has agreed to pay $10 million in cash and give away merchandise worth $36 million at retail to settle a 4-year-old lawsuit alleging misleading advertising and improper business practices. Although Jenny Craig is headquartered in Del Mar, Calif., the class-action suit, filed on behalf of 360,000 of its weight-loss clients, was filed in Orange County Superior Court in Santa Ana in 1990. It claims the company’s diets caused gall bladder disease. The settlement covers people who used Jenny Craig centers between 1987 and 1990. In agreeing to the terms, the company did not admit wrongdoing.

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