According to a news source, a company that makes high-priced cookware and targets its sales to Spanish-speaking immigrants in the Los Angeles area has agreed to settle litigation accusing it of fraudulently claiming that its products could cure diseases ranging from cancer and Alzheimer’s to diabetes and heart disease. California v. Rena Ware Int’l, Inc., No. BC437981 (Cal. Super. Ct., Los Angeles Cty., settlement reached July 1, 2010). California Attorney General Jerry Brown brought the lawsuit, alleging unfair competition and false advertising. Sales representatives reportedly told consumers that the cookware reduced high blood pressure by removing hormones from meat while it cooked. Under the agreement, the manufacturer will pay a total of $625,000 to resolve the dispute and must ensure, by means of an independent monitor, that it will refrain from using either false information or high-pressure sales tactics. See Mealey’s Personal Injury Report, July 12, 2010.
Category Archives U.S. Circuit Courts
A federal court in New Jersey has reportedly stayed for six months consumer fraud litigation against the company that makes Arizona Iced Tea® beverages and has asked the Food and Drug Administration (FDA) to determine whether high-fructose corn syrup (HFCS) qualifies as a “natural” ingredient. Coyle v. Hornell Brewing Co., No. 08-2797 (D.N.J., stay order entered June 15, 2010). Claiming that these beverages are deceptively marketed as “100% Natural” despite containing HFCS, the plaintiff alleges violation of the New Jersey Consumer Fraud Act, unjust enrichment and common-law restitution, and breach of express and implied warranties. The court issued the stay rather than dismiss the putative class action outright as requested by the defendants on the basis of the doctrine of primary jurisdiction. According to a news source, the court acknowledged that “categorizing HFCS as either natural or artificial for the purpose of food and beverage labeling does not fall within…
According to news sources, a St. Louis jury has awarded more than $500,000 to a Louisiana farmer who alleged that when the U.S. rice supply was contaminated in 2006 with a genetically modified (GM) crop that was somehow released from testing facilities, he lost $1.5 million due to lost sales abroad. In re: Genetically Modified Rice Litig., MDL No. 1811 (E.D. Mo.). The lawsuit is the third to reach trial of more than 500 consolidated before a multidistrict litigation court in eastern Missouri; it marks the third loss in federal court for the defendant, which is facing more than $52 million in jury awards. Two state trials also resulted in plaintiff verdicts. While the defendant has not apparently disputed the contamination, it has denied that it was negligent and contends that rice sales recovered shortly after the initial plunge. See Bloomberg Businessweek and Post Dispatch, July 14, 2010.
As part of its ongoing campaign to persuade government authorities to prohibit the use of bisphenol A (BPA), the Natural Resources Defense Council (NRDC) recently filed a lawsuit in the D.C. Circuit Court of Appeals seeking to force the Food and Drug Administration (FDA) to take action on a petition the organization filed in October 2008 requesting that the agency prohibit the chemical’s use in food packaging. In re: NRDC, Inc., No. 10-1142 (D.C. Cir., filed June 29, 2010). One year ago, NRDC also submitted a petition to California EPA’s Office of Environmental Health Hazard Assessment, requesting that BPA be added to list of chemicals “known to the state to cause reproductive toxicity” under the Safe Drinking Water and Toxic Enforcement Act of 1986 (also known as Prop. 65). In its lawsuit, NRDC notes that more than 600 days have passed since its FDA petition was filed, and the NRDC reiterates…
A federal court in California has dismissed a putative class action alleging that consumers were misled into believing that Cap’n Crunch’s Crunch Berries® cereal contained real berries or fruit. Werberl v. PepsiCo, Inc., No. 09-04456 (N.D. Cal., decided July 1, 2010). Noting that one law firm had filed unsuccessful suits in two other California federal district courts on behalf of two other class representatives, the court observed that the claims before it were “virtually identical.” Additional information about the dismissal of one of the other cases appears in issue 306 of this Update. According to the court, “no reasonable consumer would believe that Cap’n Crunch derives any nutritional value from berries” and any reliance on the use of the term “crunch berries” to imply “that real berries or fruit are contained in the cereal would neither be reasonable nor justifiable.” The court also found that leave to amend was unwarranted…
A federal court in Washington has dismissed the lawsuit filed by a man who alleged that inhaling the diacetyl in fumes from four to six bags of microwave popcorn daily caused his lung disease. Newkirk v. ConAgra Foods, Inc., No. 08-273 (E.D. Wash., decided July 2, 2010). Additional information about this litigation appears in issue 274 of this Update. Represented by the Independence, Missouri, attorney who has brought claims on behalf of popcorn factory workers and other consumers, Larry Newkirk sought to introduce the general causation opinion of physician David Egilman and the specific causation opinions of Dr. Charles Pue, Dr. Allan Parmet and William Ewing. The court analyzed Egilman’s proposed testimony and found it unreliable on a number of grounds, including that he sought to extrapolate residential diacetyl exposures from industrial exposures, which have been extensively studied and associated with bronchilitis obliterans, a debilitating lung disease also referred to…
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…
