U.S. Attorney Patrick Fitzgerald has brought conspiracy charges against the president of a honey manufacturer from China in an alleged scheme to illegally dump adulterated honey on the U.S. market, and recently announced that the defendant pleaded guilty. The product was apparently shipped through the Philippines and Thailand between 2005 and 2008 to avoid steep anti-dumping duties. While defendant Yong Xiang Yan entered a plea to one count of conspiracy involving the avoidance of more than $625,000 in anti-dumping duties, he acknowledged during the plea hearing that he authorized many other shipments that avoided an additional $3.3 million in duties. Some of the honey imported into the United States was allegedly adulterated with antibiotics, but “[n]either the charges [n]or the plea agreement indicate any instances of illness or other public health consequences attributed to consumption of the honey, nor does it identify any store brands or domestic supply chain of…
Category Archives U.S. Circuit Courts
California residents have filed a putative class action in federal court against the company that makes a number of margarine products, alleging that the products are falsely marketed “as healthful despite the fact its margarines have dangerous levels of artificial trans fat, a toxic food additive banned in many parts of the world.” Red v. Unilever U.S., Inc., No. 09-07855 (C.D. Cal., filed October 28, 2009). According to the complaint, the defendant (i) “specifically markets its margarines as good for cardiovascular health,” (ii) uses “non-standard and deceptive charts” when comparing the nutritional value of margarine to butter, (iii) “misleads consumers by marketing its margarines as ‘cholesterol free,’ implying its products are desirable for those with high blood cholesterol levels,” and (iv) uses “words such as ‘natural’ and ‘nutritious’ to describe products with artificial trans fat and adding images of hearts.” Among the products subject to the litigation are I Can’t Believe…
A California resident has filed putative class claims against the Kellogg Co., alleging that it falsely advertises its Cocoa Krispies® cereal as a boost to children’s immunity. Kammula v. Kellogg Co., No. 09-08102 (C.D. Cal., filed November 5, 2009). According to the complaint, without the support of any “known clinical study,” Kellogg claims that the cereal “has been improved to include antioxidants and nutrients that your family needs to help them stay healthy.” The plaintiff alleges that this practice was intended “to profit from a growing trend in the manufacturing, advertising, and sales of ‘functional’ foods.” The complaint also alleges that “Defendants fail to adequately disclose that other ingredients, including but not limited to sugar, chocolate, high-fructose corn syrup and/or partially-hydrogenated oils, may not ‘help support’ a child’s immunity.” The named plaintiff seeks to certify a class of California residents who purchased Cocoa Krispies® since November 4, 2005, alleging false…
Plaintiffs who brought personal and economic injury claims against Topps Meat Co. for an E. coli outbreak that led to the recall of more than 20 million pounds of ground beef in 2007 have filed a motion for class certification. Patton v. Topps Meat Co., No. 07-654 (W.D.N.Y., motion filed October 15, 2009). While the proposed classes, a “consumer class” of persons who purchased ground beef subject to the recall and allege economic losses and an “injury class” of persons who consumed the ground beef and allege personal injury, are national in scope, the plaintiffs contend that New York law will apply to the case. According to the named plaintiffs, each of whom was allegedly sickened by consuming contaminated meat, federal investigators confirmed 40 E. coli cases linked to the outbreak strain and estimate that for every reported case, 20 cases go unreported. Thus, they suggest that the number of injury…
Connecticut residents have filed a putative class action in state court against several fast food companies alleging that they violated consumer protection laws by selling grilled chicken products containing a carcinogenic chemical without providing warnings. Delio v. McDonald’s Corp., No. __ (Conn. Super. Ct., Hartford Cty., filed October 21, 2009). They seek to represent a class of all individuals who purchased and ingested these products in Connecticut and allege that the defendants knew or should have known that PhIP is formed when chicken is grilled and that it “has no safe level for ingestion.” The named plaintiffs, who are represented by The Cancer Project, a Washington, D.C.-based nonprofit organization, seek warning signs, actual damages, punitive damages, and attorney’s fees. The complaint refers to scientific research on PhIP and notes that California placed it on its list of chemicals known to the state to cause cancer in 1994 and that the…
A federal court in Florida has refused to enforce a $97 million judgment obtained in a Nicaraguan court by 150 banana plantation workers who alleged that exposure to the pesticide DBCP caused their sterility. Osorio v. Dole Food Co., No. 07-22693 (S.D. Fla., decided October 20, 2009). The plaintiffs sought to enforce the award under a Florida law allowing for the recognition of out-of-country foreign money judgments. Defendants Dole Food Co. and Dow Chemical Co. contended that the Nicaraguan law under which the case was litigated, Special Law 364, violated their due process rights in a number of respects, and the court agreed, finding multiple grounds for non-recognition under the Florida statute. Among other matters, the Nicaraguan law targeted a limited number of defendants, established irrefutable presumptions about causation, restricted defendants’ ability to introduce evidence, required significant financial deposits by defendants even before liability was determined, and granted no right…
A coalition of dairy farmers from the northeastern United States has reportedly filed a putative class action against the Dairy Farmers of America (DFA) and Dean Foods Co., alleging that they have monopolized the distribution of fluid milk in the Northeast, fixed prices and created an economic crisis in the industry. Allen v. DFA, No. ___ (D. Vt., filed October 8, 2009). Similar litigation is reportedly pending in a federal court in Tennessee. According to plaintiffs’ counsel, “Many dairy farmers have been forced to choose between joining DFA or DMS [Dairy Marketing Services] or going out of business. If they join, they have to pay a fee to continue to market to their own customers at prices fixed by DFA, DMS and other cooperatives. Meanwhile major milk processors Dean and HP Hood, which is part-owned by DFA, enjoy the economic benefits.” He also reportedly said that the anticompetitive milk distribution…
A federal court in California has dismissed without prejudice putative class claims that Nature Valley granola bars were fraudulently promoted as “100% Natural” while containing purportedly non-natural ingredients such as high-fructose corn syrup (HFCS). Wright v. General Mills, Inc., No. 08-1532 (S.D. Cal., decided September 30, 2009). The court refused to dismiss the claims as preempted under federal law or under the primary jurisdiction doctrine, which allows courts to stay or dismiss litigation “pending the resolution of an issue within the special competence of an administrative agency.” The dismissal was based instead on the plaintiff’s failure to plead her claims with sufficient specificity under recent U.S. Supreme Court rulings that have, according to the court, dramatically changed the federal courts’ notice-pleading standard. The court determined that the first amended complaint (FAC) “is based on little more than conclusory and speculative factual content . . . Plaintiff argues that her FAC alleges…
An Ohio appeals court has dismissed negligence, product liability, fraudulent concealment, and civil conspiracy claims filed against companies that supplied diacetyl to a flavoring company that employed two workers who allegedly contracted bronchiolitis obliterans, a debilitating lung disease, from exposure to the butter-flavoring chemical. Doane v. Givaudan Flavors Corp., No. C-080928 (Ohio Ct. App., decided September 25, 2009). Affirming the trial court’s grant of defendants’ motions for summary judgment, the appeals court found, among other matters, that the claims were barred by the statute of limitations and because the employer was a sophisticated purchaser with greater knowledge about the “dangers of diacetyl” than its suppliers.
The Center for Science in the Public Interest (CSPI) has filed a putative class-action lawsuit in a Connecticut court on behalf of an Arizona woman who allegedly had a severe allergic reaction from eating artificial chicken patties made with a Quorn Foods, Inc. fungus. Cardinale v. Quorn Foods, Inc., No. __ (Conn. Super. Ct., filed September 15, 2009). CSPI participated in another lawsuit raising similar allegations against the Connecticut-based company and Whole Foods Markets, Inc. in Texas, but those claims were apparently dismissed. According to CSPI, more than 1,000 consumers have contacted it to complain that eating foods containing the meat substitute, described in the complaint as “a proprietary processed, vat-grown, soil fungus, combined with flavorings, binders, and other substances,” causes nausea, vomiting, diarrhea, hives, difficulty breathing, or anaphylactic reactions. A CSPI press release characterizes the product as a “fibrous, proteinaceous paste.” The named plaintiff in the Connecticut litigation purportedly…
