The dispute between the competitors lasted for more than three years, with each party asserting that the other’s cold sore remedy advertising claims constituted false advertising in violation of the federal statute known as the Lanham Act.
GlaxoSmithKline (GSK) has begun the litigation by filing a federal lawsuit against Merix in New Jersey in early 2005. Merix followed by suing Glaxo in federal court in Chicago a few weeks later. The exact terms of the settlement are confidential.
Meryl Squires, founder and CEO of Merix, said: “We are very pleased with the settlement, which will allow us to grow our business with our cold sore product.”