Ruling in a Gray Area

The maker and distributor of Grecian Formula are celebrating a state appeals court decision dismissing most of the legal claims filed by men who used the popular hair dye.

The 2nd District Court of Appeal in Los Angeles ruled that the claims against Combe Inc. and its parent American International Industries were barred by a previous settlement involving the same firms.

The legal dispute arose from a July 1997 class-action suit filed by five men who claimed that the company violated the state’s Toxic Enforcement Act, known as Proposition 65, by not warning them about the potential dangers of lead acetate, a color additive and a key ingredient in Grecian Formula. Lead acetate is listed by the state as a product known to cause cancer and birth defects.

Attorneys for the firms have insisted that the products are safe.

In January 1998, the firms paid $335,000 to settle a previous suit brought by the nonprofit Center for Environment Health on consumers’ behalf. As part of the settlement, the companies also agreed to reduce the amount of lead acetate in Grecian Formula by 50%.

Lawyers for the manufacturers then sought, unsuccessfully, to get a lower court judge to throw out the men’s suit.

But the state appeals court last week did just that, holding that the men’s core claims were barred by the previous settlement.

Gene Livingston, an attorney for American International, said the appellate court’s decision represented the first ruling that “only one representative action can be brought on behalf of the public. The cost of doing business has just gone down in California,” he said.

Gary Sodikoff, an attorney for the men, said he may decide to appeal to the California Supreme Court.