Pasta Maker to Settle Product Labeling Claims for $7.9 Million
To settle claims that it allegedly deceived consumers by advertising and labeling its Dreamfields pasta products as a low-glycemic index and low-carbohydrate alternative to traditional pasta, Dakota Growers Pasta Co. has agreed to establish a $5-million settlement fund and pay an additional $2.9 million to plaintiffs’ counsel. Mirakay v. Dakota Growers Pasta Co., No. 13-4429 (D.N.J., motion for preliminary settlement approval filed April 14, 2014). The company has also agreed to remove the allegedly false or misleading statements from Dreamfields packaging for at least one year.
Under the settlement, which requires certification of a nationwide class of consumers and approval by the court, those who purchased the pasta online will automatically receive $1.99 for every box purchased. Class members who purchased the products in stores and submit a valid claim form will be limited to reimbursement for 15 boxes of pasta. Any funds remaining will be used to adjust each class member’s recovery upward by as much as 50 percent; residual funds will be donated to the American Diabetes Association.
Issue 521
