Following similar decisions from courts across the country, two California federal courts have delayed final rulings in cases accusing Kashi and Trader Joe’s of mislabeling their products by using the term “evaporated cane juice” (ECJ) in their ingredient lists rather than simply “sugar,” which the plaintiffs allege is the same substance. Gitson v. Trader Joe’s Co., No. 13-1333 (N.D. Cal., order entered August 7, 2014); Saubers v. Kashi Co., No. 13-899 (S.D. Cal., order entered August 11, 2014). In the proposed class action against Kashi, the plaintiffs accused the Kellogg-owned company of “misbranding” more than 75 different food products by listing ECJ instead of sugar on its labels to conceal its inclusion in the foods. The court found that the plaintiffs’ claims relied “heavily, if not entirely, on the premise that the [U.S. Food and Drug Administration (FDA)] has concluded that ‘evaporated cane juice’ is not the common or usual name…
Category Archives 9th Circuit
The U.S. Environmental Protection Agency (EPA) and several conservation groups have agreed to a settlement that limits pesticide use near salmon habitats in three states in a lawsuit accusing the agency of failing to assess the effects of pesticides on salmon despite a 2004 court decision ordering it to consult with National Marine Fisheries Service (NMFS) on the issue. Nw. Ctr. for Alts. To Pesticides v. EPA, No. 10 1919 (W.D. Wash., stipulated settlement agreement filed August 13, 2014). The settlement bans aerial spraying of five pesticides—carbaryl, chlorpyrifos, diazinon, malathion, and methomyl—within 300 feet and ground applications within 60 feet of salmon habitats in California, Oregon and Washington. The restrictions will be in place while NMFS analyzes the impact of the pesticides on salmon, and according to the settlement, EPA will then be required to enact permanent protections based on the findings. The Fourth Circuit struck down similar provisions in 2013…
A California federal court has dismissed several of the plaintiffs’ claims in a putative class action accusing Frito-Lay North America Inc. of mislabeling its Rold Gold pretzels as “low fat,” “fat free” or “all-natural” despite allegedly containing high sodium levels and unnatural ingredients. Figy v. Frito-Lay North America Inc., No. 13-3988 (N.D. Cal., order entered August 12, 2014). The court found that the plaintiffs had standing to sue on behalf of purchasers of several non-purchased products because Frito-Lay’s health claims were the same for each and the only difference was the shape of the pretzel products. The court then dismissed several of the plaintiffs’ claims. It found that it did not have subject matter jurisdiction to grant injunctive relief because Frito-Lay had triggered the plaintiffs’ obligation to prove jurisdiction by submitting declarations and extrinsic evidence of the plaintiffs’ lack of standing to seek an injunction, and the plaintiffs had then failed to…
A federal court in California has granted in part the motion to dismiss filed by Diamond Foods, Inc. in a putative class action alleging that the company misleads consumers by claiming that its Reduced Fat Sea Salt Chips are “40% reduced fat potato chips” and its Backyard Barbecue Chips are “All Natural,” as well as making false and deceptive statements in the company’s “promotional materials” and on its “website.” Hall v. Diamond Foods, Inc., No. 14-2148 (U.S. Dist. Ct., N.D. Cal., order entered July 31, 2014). An amended complaint, if any, must be filed by August 15, 2014, and the case management conference will be held on October 31. The court dismissed the reduced fat claims finding them insufficiently pleaded because it was unclear whether the plaintiff read only the statement on the front of the bag, in which case he “would lack standing to argue the statements on the…
A federal court in Washington has determined that the U.S. Environmental Protection Agency (EPA) did not violate the Freedom of Information Act (FOIA) in responding to requests for information relating to its investigation of nitrate levels in groundwater and residential drinking water wells in the Lower Yakima Valley. Cmty. Ass’n for Restoration of the Env’t, Inc. v. EPA, No. 13-3067 (E.D. Wash., order entered August 6, 2014). Because the environmental organization (CARE), which is a plaintiff in Resource Conservation and Recovery Act (RCRA) citizen suits against the dairies whose documents are part of the FOIA requests, also alleged Administrative Procedure Act (APA) violations against EPA, the court granted its request to allow the parties to brief the merits of CARE’s APA claim. Meanwhile, the dairies subject to the RCRA actions have filed a lawsuit against EPA, seeking an order prohibiting EPA from disclosing to CARE or other members of the…
A California federal court has granted the plaintiffs’ request to dismiss their entire action with prejudice in a case accusing Gruma Corp. of labeling its Mission Restaurant Style tortilla chips as “all natural” despite containing genetically modified corn. Cox v. Gruma Corp., No. 12-6502 (N.D. Cal., order entered July 25, 2014). The plaintiffs’ stipulation to dismiss did not indicate whether the parties reached a settlement agreement. In the 2012 complaint, the plaintiffs alleged that Gruma violated state consumer protection laws like the Consumer Legal Remedies Act due to its alleged mislabeling; in July 2014, they debated Gruma’s motion to dismiss, in which the corporation argued that a reasonable customer would not have been misled by their labels, the complaint’s claims infringed the First Amendment, the plaintiffs failed to plead their fraud claims with the particularity required, and the court lacked jurisdiction to issue an injunction. Additional information on the case appears…
A federal court in California has dismissed for lack of standing a putative class action alleging that Pacific Foods of Oregon, Inc. misleads consumers by using the term “evaporated cane juice” (ECJ) on its food labels instead of sugar. Swearingen v. Pac. Foods of Ore., Inc., No. 13-4157 (N.D. Cal., order entered July 30, 2014). Plaintiffs Mary Swearingen and Robert Figy are named plaintiffs in a number of ECJ-related cases that have recently been stayed under the primary jurisdiction doctrine as the U.S. Food and Drug Administration considers its position on use of the term by food makers. Two such cases are summarized in Issue 529 of this Update. The court did not address this issue here, because it dismissed the case on pleading grounds. According to the court, the plaintiffs did not allege that they purchased the company’s products “in reliance on any alleged misrepresentations that evaporated cane juice is…
In consolidated actions pending since 2010, a federal court in California has entered a final order approving a class-action settlement that will require Quaker Oats Co. to remove partially hydrogenated oils (PHOs) from some of its oatmeal products and cease making the statement “contains a dietarily insignificant amount of trans fat” on any product label where the product still contains more than 0.2 grams of artificial trans fat per serving. In re Quaker Oats Labeling Litig., No. 10-0502 (U.S. Dist. Ct., N.D. Cal., San Jose Div., order entered July 29, 2014). Details about a court ruling trimming the plaintiffs’ claims that the company falsely advertised products with PHOs as healthy appear in Issue 433 of this Update. According to the court’s order awarding $760,000 to class counsel in attorney’s fees and costs, the suit and settlement conferred “a significant benefit . . . on the general public” given the product…
A California federal court has dismissed fraud claims against R.C. Bigelow in a putative class action accusing the company of advertising that its tea “delivers healthful antioxidants” when the levels of antioxidants are too low to benefit the consumer. Victor v. R.C. Bigelow, No. 13-2976 (N.D. Cal., order entered July 18, 2014). The court allowed to proceed the plaintiff’s claim that Bigelow’s antioxidants assertion on its packaging violated California’s Unfair Competition Law (UCL) based on the “unlawful” prong, but it dismissed with prejudice his claims that Bigelow had violated the “fraud” prong of the UCL. Despite arguing the importance of the word “deliver,” the plaintiff failed to prove that the phrase “delivers healthy antioxidants” represented that the product contained a high enough level of antioxidants to provide health benefits to the tea drinker; as the court had previously allowed the plaintiff to amend his complaint, the claims relating to fraudulent…
A California federal court has approved a settlement in a class action alleging that Trader Joe’s labels items with synthetic ingredients as “All Natural.” Larsen v. Trader Joe’s Co., No. 11-5188 (N.D. Cal., order entered July 11, 2014). Trader Joe’s will pay $3.375 million to a settlement fund to compensate class members with a proof of purchase for all products and members without a proof of purchase for up to 10 items, with leftover funds to be distributed as products to class members at retail locations throughout the United States. Plaintiffs’ counsel will receive $950,000 of the fund. In 2011, plaintiffs accused Trader Joe’s of labeling several of its food products as “All Natural” or “100% Natural” despite containing one or more synthetic ingredients, which they alleged constituted fraud and unlawful business practices under federal and California law. The parties attended three mediation sessions supervised by a retired judge, but they…
