Alberto-Culver sues P&G over skin cream
Procter & Gamble Co., the world's biggest household-goods maker, was accused in a lawsuit of making defective Noxzema skin cream after it sold the line to Alberto-Culver Co. for $81 million last year.
Alberto-Culver, a maker of personal-grooming products, completed the purchase in October. P&G agreed to keep making the Noxzema line while the buyer "developed its manufacturing capabilities," according to the complaint filed in Illinois state court in Chicago.
In the first three months of this year, consumer complaints about the product known as Original Noxzema skin cream rose from nine to 17 to 61, Melrose Park-based Alberto-Culver said. After fielding the complaints, Alberto-Culver started an investigation.
"The defects were visibly obvious" in about 20 percent of products in Alberto-Culver's own distribution centers and were reportedly caused by improper heating during manufacturing, according to the company's complaint.
Alberto-Culver also alleged that P&G failed to disclose to it product defect rates for 2007 and part of 2008 before the sale.
The company alleges P&G has been unwilling to reimburse it for millions of dollars spent to cope with issues related to the defective manufacturing. Claiming breach of contract, Alberto- Culver seeks unspecified money damages.
Jennifer Chelune, a spokeswoman for Cincinnati-based Procter & Gamble, declined to comment on the lawsuit.
The case is Alberto-Culver USA Inc. v. The Procter & Gamble Co., 2009L009543, Cook County, Illinois, Circuit Court, Chancery Division (Chicago).