Category Archives Litigation

According to news sources, a New York woman is seeking $5 million in damages in a putative class action against General Mills, alleging that the company falsely promotes its Fruit Roll-Ups® and other fruit snacks as nutritious and healthy while failing to properly disclose to consumers that partially hydrogenated oil is a product ingredient. McClure v. General Mills, Inc., No. 10-05015 (S.D.N.Y., filed June 29, 2010). Plaintiff Payton McClure, who reportedly describes herself as a “lifelong consumer” of General Mills products, contends that partially hydrogenated oil is “dangerous” and “unhealthy.” She apparently seeks compensatory and punitive damages, among other remedies. See Reuters and NYDailyNews.com, June 29, 2010.

The attorneys for a woman who recently reportedly sued General Mills for failing to properly disclose that its fruit snack products contain partially hydrogenated oil also represent a man who has filed similar claims against the companies that make and sell Yoo-Hoo®, a chocolate beverage. Dahl v. Mott’s LLP, No. __ (E.D.N.Y., filed June 29, 2010). Information about the General Mills lawsuit appears elsewhere in this Update. According to plaintiff Timothy Dahl, the defendants promote Yoo-Hoo® as a nutritious and healthy product, claiming that it contains vitamins and minerals, has no preservatives and is 99 percent fat free and 99 percent caffeine free. The complaint states, “Unfortunately for consumers and, in certain cases their children, all these claims are false and misleading. Defendants’ healthful claims are misleading since the Product fails to properly disclose they contain a highly unhealthy, non-nutritious ingredient known as partially hydrogenated oil. This partially hydrogenated oil…

A federal court in California has denied defendant’s motion to dismiss a putative class action alleging that the company deceived the public by promoting and labeling its reformulated microwave popcorn as containing “No Added Diacetyl.” Fine v. ConAgra Foods, Inc., No. 10 01848 (D.C. Cal., order entered June 29, 2010). According to the plaintiff, she relied on defendant’s claims about “no added diacetyl” when purchasing its products, yet the popcorn still contains diacetyl. Accepting the plaintiff’s allegations as true for the purpose of ruling on the motion, the court noted that while plaintiff does not have “direct knowledge of the presence of diacetyl in Defendant’s products, Plaintiff relies on the work and statements of several health experts and alleges that ‘[k]nown “substitutes” for diacetyl still contain molecules of diacetyl.’” The defendant sought to dismiss the claims on the grounds that the plaintiff did not allege a cognizable injury and thus lacks…

The former manager of an Iowa-based kosher meatpacking plant that was raided by immigration authorities in 2008 has reportedly been sentenced to 27 years for financial fraud and ordered to pay $27 million in restitution. While the initial case against Sholom Rubashkin involved the hiring of hundreds of illegal immigrant workers, prosecutors apparently changed their focus to his alleged mishandling of loans that led to bank losses of $26 million. The presiding federal judge reportedly released a 52-page memorandum in advance of the sentencing hearing to explain her decision. The sentence, two years longer than requested by prosecutors, has generated controversy given the relatively lighter sentences meted out to corporate officials responsible for greater frauds in recent years. Six former U.S. attorneys general submitted a letter to the judge supporting a lighter prison term. Rubashkin’s lawyers have indicated that they will appeal the sentence. See The New York Times, June…

A number of Minnesota-based apple growers have filed a complaint against the regents of the University of Minnesota and others claiming that exclusive and limited licensing agreements pertaining to the cultivation and sale of a new apple variety violate federal and state competition and restraint of trade laws. Aamodt Apple Farm, Inc. v. Regents, U. Minn., No. __ (Minn. Dist. Ct., Hennepin Cty., filed June 16, 2010). According to the complaint, the SweeTango®, a cross between the Honeycrisp™ and Zestar!™ varieties, was developed with the use of state funding through the university’s apple-breeding program. One grower allegedly has an exclusive license to grow the apple and may license others to grow it on its behalf. The agreements allegedly limit the number of trees that can be planted and where and how the apples can be sold. The plaintiffs allege unreasonable restraint of trade in commerce; establishment, maintenance and use of a…

The Center for Science in the Public Interest (CSPI) has notified McDonald’s Corp. that it intends to sue the company within 30 days if it does not immediately stop using toys to market its Happy Meals® to young children. The letter characterizes the practice as “illegal, because marketing to kids under eight is (1) inherently deceptive, because young kids are not developmentally advanced enough to understand the persuasive intent of marketing; and (2) unfair to parents, because marketing to children undermines parental authority and interferes with their ability to raise healthy children.” The June 22, 2010, letter claims that McDonald’s has violated the consumer protection laws of California, Massachusetts, New Jersey, Texas, and the District of Columbia. According to CSPI, each of the 24 Happy Meals® food combinations is 26 percent higher on average in calories than a reasonable lunch and contains more saturated fat, sodium and sugar than a…

In a 7-1 ruling, the U.S. Supreme Court has determined that a district court erred in enjoining the Animal and Plant Health Inspection Service (APHIS) from even partially deregulating Monsanto’s Roundup Ready® alfalfa while the agency takes steps to comply with the National Environmental Policy Act (NEPA). Monsanto Co. v. Geertson Seed Farms, No. 09-475 (U.S., decided June 21, 2010). The district court found that APHIS failed to prepare an environmental impact statement (EIS) as required under NEPA before granting Monsanto’s petition to deregulate the seed, which has been genetically modified (GM) to resist glyphosate, a weed killer used on GM crop fields. The court then enjoined APHIS from deregulating GM alfalfa until an EIS could be completed and further enjoined the seeds’ sale and planting beyond sales already made in March 2007. Farmers who had purchased the seed were allowed to plant it that year. Writing for the majority, Justice…

A Wisconsin organic farm was reportedly scheduled to argue in court this week that state restrictions on the sale of raw milk do not apply where the sales are made to consumers who are part owners of the farm. While the legislature recently attempted to change a law that regulators contend allows incidental raw milk sales only, the state calls the farm’s sales in excess of $80,000 yearly to consumers, who each own a $10 share in the farm, well beyond what the law allows. Wisconsin’s governor vetoed the popular bill, which would have allowed on farm raw milk sales, apparently concerned that E. coli outbreaks purportedly linked to consumption of the unpasteurized product could affect the state’s entire dairy industry. Raw milk proponents dispute that any such link exists. Meanwhile, public health officials investigating a recent E. coli outbreak that has allegedly sickened eight Minnesota residents including school-aged children…

The Environmental Law Foundation has notified more than four dozen food manufacturers and retailers that they are in violation of California’s Proposition 65 Toxics Right to Know law (Prop. 65) after testing purportedly indicated the presence of lead in numerous fruit and fruit juice products. According to the foundation, “apple juice, grape juice, packaged pears and peaches (including baby food), and fruit cocktail” products contained “enough lead in a single serving that they require a warning” under Prop. 65, and the companies, since June 9, 2009, “have exposed and continue to expose consumers of their food products to lead” every day. California’s attorney general, city attorneys and county district attorneys received copies of the notice. The foundation declares in the notices that it intends “to bring suit in the public interest” against the listed companies in 60 days to correct the Prop. 65 violations. A foundation news release indicates that…

The Judicial Panel on Multidistrict Litigation (JPML) has denied a request to transfer four pending federal lawsuits to a multidistrict litigation court, finding that the common factual questions about General Mills’s alleged nationwide marketing claims for its Yo-Plus® yogurt products are not sufficiently complex or numerous to justify consolidation. In re: General Mills, Inc., Yoplus Yogurt Prods. Mktg. & Sales Practices Litig., MDL No. 2169 (JPML, order filed June 14, 2010). Putative class actions, challenging the company’s claimed probiotic digestive benefits, are currently pending in federal courts in California, Florida, New Jersey, and Ohio. They involve statewide classes that the court found “will likely not overlap significantly.” The Florida action, already certified, is pending on interlocutory appeal before the Eleventh Circuit, and the California court stayed its class certification hearing pending the JPML’s ruling. According to the panel, “Because all plaintiffs are represented by mostly common counsel and General Mills…

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