The Third Circuit has reversed a Michigan district court’s dismissal in a case alleging that H.J. Heinz Co. stole the idea for the “Dip & Squeeze” ketchup packet from plaintiff David Wawrzynski, an inventor who had proposed the idea to the company in 2008. Wawrzynski v. H.J. Heinz Co., No. 13-4100 (3d Cir., order entered July 21, 2014). Wawrzynski owned a 1997 patent for a condiment packet that allowed users to dip food into it. From that idea, he developed a “separate and distinct” condiment packet that he called the Little Dipper, which allowed users to either dip food into it or squeeze out the contents. He met with Heinz in 2008 and discussed the possibility of selling the idea to the company, but they never reached a deal. Later, Heinz released its Dip & Squeeze ketchup packet, which allows users the option of dipping food directly into it or…
Category Archives 3rd Circuit
A federal court in New Jersey has denied without prejudice the motion to certify three classes of multi-state claimants alleging that Beam Global Spirits & Wine falsely markets and sells its “Skinnygirl Margarita” product as “all natural” and a “healthy alternative to other commercial Margarita products.” Stewart v. Beam Global Spirits & Wine, Inc., No. 11-5149 (U.S. Dist. Ct., D.N.J., order entered June 26, 2014). Under Third Circuit Court of Appeals precedent, the court determined that class membership, essentially via affidavit relying on potentially faulty memory, was not sufficiently ascertainable. The plaintiffs will have the opportunity to renew their motion at any appropriate time “specifically taking into account the rulings in Marcus, Hayes, and Carrera.” Among other matters, the court rejected the plaintiffs’ claim that the affidavits could be cross-checked using social media—for example, the “likes” or comments on the defendants’ Skinnygirl Facebook pages, or the companies’ consumer email records—or…
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…
A federal multidistrict litigation (MDL) court in Pennsylvania has determined that individual-purchaser plaintiffs and a direct-purchaser class failed to discover evidence that U.S. chocolate companies conspired to increase prices for immediate-consumption products between 2002 and 2007, and, with “nothing more than speculation as to the who, what, when, where, and how of communications that allegedly facilitated the parallel price increases,” the court was compelled to grant the defendants’ motions for summary judgment on the plaintiffs’ Section 1 antitrust claims under the Sherman Act. See In re Chocolate Confectionery Antitrust Litig., MDL No. 1935 (M.D. Pa., decided February 26, 2014). The litigation involves some 91 lawsuits transferred to the MDL court for pre-trial proceedings. Defendants Nestlé U.S.A., Inc., The Hershey Co., and Mars, Inc. and Mars Snackfood U.S. LLC control about 75 percent of the U.S. chocolate-products market, and during the relevant time period, which saw prices for cocoa increase 53…
Some four years after the U.S. Equal Employment Opportunity Commission (EEOC) accused several Ruby Tuesday, Inc. restaurants in Pennsylvania and Ohio of engaging in a pattern or practice of age discrimination against 40-year-old or older job applicants, Ruby Tuesday agreed to settle the claims, without admitting any liability. EEOC v. Ruby Tuesday, Inc., No. 09-1330 (W.D. Pa., consent decree approved December 9, 2013). The company will pay $575,000 into a qualified settlement fund account to provide back pay and statutory damages to eligible claimants, designate a decree compliance monitor to ensure compliance with the terms of the agreement, establish hiring and recruitment goals for individuals in the protected age group, adopt and maintain an electronic applicant tracking system, audit compliance, and report to EEOC. The company has also agreed to provide sufficient training regarding the decree, will report age-discrimination complaints to EEOC and retain certain records to resolve claims that…
A federal court in New Jersey has, on the basis of the primary jurisdiction doctrine, halted proceedings alleging that General Mills misleads consumers by labeling its Kix® cereals with bioengineered corn as “made with all natural corn.” In re General Mills, Inc. Kix Cereal Litig., No. 12-249 (D.N.J., order entered November 1, 2013). Citing rulings from California and Colorado referring the matter to the U.S. Food and Drug Administration (FDA) for resolution, the court stated that “the issue of whether products may be labeled ‘Natural’ when they are made with bioengineered forms of corn falls within the expertise of the FDA and deference to the FDA’s regulatory authority is appropriate here.” Information about the Colorado litigation appears in Issue 492 of this Update. The court “administratively terminated” (i) the action “until such time as the FDA responds to this referral” or the referrals in the two other cases, and (ii) the…
A federal court has dismissed without prejudice the first amended complaint filed in a putative class action alleging that Weight Watchers International misleads consumers by misrepresenting the number of calories in its line of diet ice cream bars. Burke v. Weight Watchers Int’l, Inc., No. 12-6742 (D.N.J., decided October 17, 2013). While the court held that it was premature to decide whether the plaintiff had standing to bring claims as to diet bars she did not purchase, persuaded by other courts that this was more properly decided at the class certification stage, it agreed with the defendants that the state law-based claims were preempted. The Food and Drug Administration has set forth the five methods that can be used to calculate the total number of calories in a food product labeled with that information. In the court’s view, “Burke’s claims are preempted because she has failed to plead two separate…
The Mexican brewer that makes Dos Equis® beer and has advertised it with a distinctive campaign since 2007 has brought a trademark and copyright infringement lawsuit against a New Jersey-based company and its president for an advertising campaign that allegedly mimics the brewer’s “Most Interesting Man in the World®” ads. Cervezas Cuauhtémoc Moctezuma, S.A. de C.V. v. KCI, Inc., No. 13-5044 (D.N.J., filed August 22, 2013). According to KCI’s LinkedIn page, the company offers storage area network (SAN) maintenance services. The complaint alleges that defendants have filed trademark applications for and use in a YouTube video the marks “The Most Interesting SAN Architect in the World” and “I Don’t Always Use Third Party Companies When I Buy and Maintain SAN Equipment But When I Do It’s Always Team KCI . . . Stay Convergent My Friend.” This compares with the brewer’s registered marks “The Most Interesting Man in the World” and…
A New Jersey resident has filed a putative nationwide class action against the Campbell Soup Co. and American Heart Association (AHA) claiming that the “Heart-Check Mark” which AHA allows Campbell to place on more than 30 varieties of its canned soups in exchange for a fee misleads consumers into believing that these products meet AHA’s heart-healthy nutritional guidelines when a single serving actually contains nearly three times the amount of sodium permitted under those guidelines. O’Shea v. Campbell Soup Co., No. 13-4887 (D.N.J., filed August 13, 2013). According to the plaintiff, “Properly characterized, the real meaning of the AHA’s Heart-Check Mark certification is, ‘Unhealthy, but maybe not as bad for you as other products.’” Also characterizing the certification program as a “scheme,” the plaintiff alleges, “By the AHA selling, and Campbell’s buying, the right to affix the AHA’s seal of approval to its products, they falsely represent to the public…
The Judicial Panel on Multidistrict Litigation (JPML) has denied transfer to a multidistrict litigation (MDL) court of consumer-fraud lawsuits involving Capatriti brand “100% Pure Olive Oil” made by Kangadis Food Inc. d/b/a The Gourmet Factory and numerous snack, cereal, protein bar, and frozen entrée products made by the Kashi Co. In re Capatriti Brand Olive Oil Mktg. & Sales Practices Litig., MDL No. 2469; In re Kashi Co. Mktg. & Sales Practices Litig., MDL No. 2456 (J.P.M.L., decided August 6, 2013). According to the court, centralization is not appropriate in the olive oil suit because the Southern District of New York action has made “significant progress” and the number of actions pending in adjacent districts is small with a “correspondingly limited number of involved counsel and courts.” Because the plaintiff in a New Jersey action has considered voluntarily transferring his action to New York, the JPML found that alternatives to centralization…
