00:02Well, this is a big development in this ongoing saga around this SPF sunscreen claim scandal
00:10really that we've been covering over the past year.
00:13Now in this case, Ultraviolet, one of the manufacturers of one of the sunscreens that
00:19was recalled for having an SPF rating far below what was being advertised is suing the
00:25company that makes the base formula for their sunscreen.
00:27This particular sunscreen and others that were recalled accusing it basically of misleading
00:34and deceptive conduct in its claims around the effectiveness of that base formula.
00:39It's claiming millions of dollars in losses and there's another manufacturer or another
00:45brand that's also suing this manufacturer, Wild Child Laboratories.
00:50Now the complicating factor here is that Wild Child Laboratories in the midst of this legal
00:54action has gone into voluntary liquidation.
00:58And it's got debts claimed against it of about $20 million.
01:03So it's really going to put things in the air and really complicate what looks to be a quite
01:09drawn out legal process now.
01:11Ultraviolet has said to us that they will have to seek leave from the court to continue to
01:16take legal action against a company in liquidation.
01:20We understand that there's insurance, business insurance involved, so there may be a claim against that.
01:25Now the fascinating part of this story is that Wild Child has essentially been reborn through an asset sale to
01:35a new company called Heliora that was set up in the month before Wild Child went into liquidation.
01:41That company bought the assets of Wild Child, it's taken on all the staff and it's agreed liabilities and it's
01:49moving on continuing to manufacture out of the same manufacturing plant.
01:54Now, Ultraviolet says that they understand the liquidator is looking at this transaction, but Wild Child's executives that have now
02:04moved on to Heliora, they say they reject any suggestion that this new company was created to avoid the liability.
02:13So just before they went into liquidation, they indicated that they would defend this claim, they rejected that it was
02:21their responsibility to ensure the effectiveness of this formula, that that was the responsibility of the brands, but really the
02:30way things are set up now, it looks to be a drawn out legal battle.
