Elysium Can’t Avoid False-Ad Settlement Despite Winning Judgment

Diet supplement maker Elysium Health Inc. can’t back out of a $2.5 million settlement with Chromadex Inc. after winning summary judgment—hours after email confirmation of the deal—from a district court that didn’t know about the agreement, a federal appeals court affirmed Thursday.

The district court properly deemed that Elysium’s agreement to pay Chromadex $2.5 million, reached by phone negotiations and confirmed by email, was enforceable, despite the later court decision, the US Court of Appeals for the Second Circuit said in an unpublished summary order.

The disputed settlement came in false-ad litigation between Elysium and Chromadex in the US District ...