An Alberta court has reportedly approved a settlement agreement in a class action stemming from an E. coli outbreak that resulted in the recall of nearly 4 million pounds of beef in Canada and the United States, amounting to the largest meat recall in Canadian history. Harrison v. XL Foods Inc., No. 1203-14727 (Can. Alta. Q.B., order entered February 17, 2016). Under the settlement agreement, the class is open to consumers in Canada and the United States who either purchased XL Foods Inc.’s beef, thereby suffering an economic injury, or consumed it, causing them to contract an illness. Eligible class members can receive a full refund with proof of purchase or CAN $25 without. See CBC News, February 17, 2016. Issue 595
Category Archives Issue 595
A California federal court has dismissed a lawsuit against Chipotle Mexican Grill Inc. alleging the company falsely advertises its food as free of genetically modified organisms (GMOs) despite selling meat and dairy produced from animals fed GMO products as well as soft drinks manufactured with GMO corn syrup. Gallagher v. Chipotle Mexican Grill, Inc., No. 15-3952 (N.D. Cal., order entered February 5, 2016). The plaintiff had failed to plausibly plead her allegations, the court found, because she failed to specify which products she purchased. Accordingly, the court granted Chipotle’s motion to dismiss but allowed the plaintiff leave to amend. Additional information about the complaint appears in Issue 577 of this Update. Meanwhile, a jury ordered Chipotle to pay $351,936 in back pay and $255,000 in punitive damages to three female former managers at restaurants near Cincinnati, Ohio, over allegations of gender discrimination. Rogers v. Chipotle Mexican Grill Inc., No. 13-0146…
A California state court has reportedly rejected Pabst Brewing Co.’s attempt to dismiss a lawsuit brought by Snoop Dogg asserting the rapper is entitled to a portion of the proceeds obtained through the $700 million sale of the company in 2014. Spanky’s Clothing Inc. v. Pabst Brewing Co. LLC, No. BC584365 (Cal. Super. Ct., Los Angeles Cnty., rulings issued February 24, 2016). In the June 2015 complaint, the rapper argued that through a phantom equity clause in his three-year deal to endorse Blast by Colt 45®, a line of fruit-flavored alcohol beverages, he is owed part of the sale price realized by Pabst stockholders. The parties reportedly disputed over whether the court should take judicial notice of the securities sale agreement, but the court found that considering it was inappropriate at this stage of the litigation and denied the motions to dismiss the case. See Law360, February 24, 2016. …
Cumberland Packing Corp. and a group of consumers have reached a settlement agreement in a lawsuit alleging that Cumberland Packing Corp. misrepresents its Stevia in the Raw® sweetener products as all natural despite containing genetically modified organisms. Frohberg v. Cumberland Packing Corp., No. 14-0748 (E.D.N.Y., motion filed February 22, 2016). Under the agreement, Cumberland will pay up to $1,547,000 to reimburse class members with $2.00—or 40 percent of the average purchase price—per purchase of Stevia in the Raw®, to a maximum of $16 per person. In addition, Cumberland will remove “100% Natural” or “All Natural” label claims. Issue 595
A New York state court has reportedly refused to grant the National Restaurant Association’s request for a preliminary injunction to stall the enforcement of New York City’s new requirement that chain restaurants label menu items containing 2,300 mg of salt or more, which is set to take effect March 1, 2016. Nat’l Restaurant Assoc. v. New York City Dept. of Health, No. 654024/2015 (N.Y. Super. Ct., New York Cty., order entered February 24, 2016). During the hearing, the court reportedly distinguished the rule from a ban on the ingredient, noting, “It’s not a ban. It’s information. It’s a warning.” Under the rule, chain restaurants must display a logo of a triangle with the image of a salt shaker next to applicable menu items or risk a $200 fine for each infraction. See Bloomberg, February 24, 2016. Issue 595
A Texas federal court has dismissed multidistrict litigation (MDL) alleging that Whole Foods Market Inc. lists incorrect amounts of sugar on its yogurt labels, concluding the Consumer Reports data relied on by the plaintiffs did not meet federal standards. In re Whole Foods Mkt. Inc. Greek Yogurt Mktg. & Sales Practices Litig., MDL No. 2588 (W.D. Tex., Austin Div., order entered February 16, 2016). The consumers claimed Whole Foods’ store-brand yogurt contains 11.4 grams of sugar per serving, while the listed sugar content is 2 grams. Details about some of the 11 consolidated lawsuits appear in Issues 533 and 534 of this Update. Whole Foods argued that the consumers’ claims were preempted by the federal Food, Drug, and Cosmetic Act (FDCA) because the scientific testing techniques used by Consumer Reports failed to comply with the testing methodology determined by the U.S. Food and Drug Administration. The court agreed, noting that…
A California federal court has dismissed portions of a lawsuit alleging that B&G Foods mislabeled its taco shells as containing “0g Trans Fat” despite the product’s use of partially hydrogenated oil as an ingredient. Walker v. B&G Foods, No. 15-3772 (N.D. Cal., order entered February 8, 2016). Five of the plaintiff’s seven claims involved alleged mislabeling of the taco shells as free of trans fat; the court disposed of the claims, finding that the Nutrition Labeling and Education Act required the trans fat level be listed as 0 grams if the content is less than one-half of a gram, thus preempting the claims. The court then turned to the non-labeling claims, through which the plaintiff argued the taco shells were unsafe for consumption based on the trans fat content and thus amounted to a breach of an implied warranty of merchantability and a violation of California’s Unfair Competition Law. Citing…
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