UPDATE 2-Weight Watchers settles lawsuit with Jenny Craig

Fri Feb 5, 2010 1:16pm EST

* Jenny Craig admits no wrongdoing in Bertinelli commercial

* Jenny Craig says no damages, fees or costs involved

* Weight Watchers shares fall 1 pct (Recasts, adds Jenny Craig comments)

By Viraj Nair

BANGALORE, Feb 5 (Reuters) - Nestle AG's (NESN.VX) Jenny Craig Inc unit agreed to end its advertising campaign about a supposedly superior weight-loss program to settle a lawsuit with Weight Watchers International Inc (WTW.N), the companies said.

Under the terms, Jenny Craig pays no damages, fees, or costs, and admits no wrong doing of any kind, it said in an emailed statement.

On Jan. 19, Weight Watchers filed a lawsuit against Jenny Craig charging that the Nestle unit's advertising campaign featured false and misleading claims.

Jenny Craig had claimed in a television commercial, featuring actress Valerie Bertinelli, that "a major clinical trial" showed its clients on average lost more than twice as much weight as "those on the largest weight loss program."

The settlement agrees not to compare the results of Jenny Craig's clinical trials to Weight Watchers' past clinical trial results, the company said.

Shares of Weight Watchers were down 1 percent at $28.35 in afternoon trade Friday on the New York Stock Exchange. (Reporting by Viraj Nair; Editing by Gopakumar Warrier)

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