Category Archives U.S. Circuit Courts

The U.S. Equal Employment Opportunity Commission (EEOC) has filed a lawsuit alleging that Del Taco LLC failed to provide "a conciliation agreement acceptable to the Commission" following allegations of discriminatory practices against female employees. EEOC v. Del Taco LLC, No. 18-1978 (C.D. Cal., filed September 17, 2018). Allegations include sexual harassment of female employees by male shift leaders and general managers. The complaint asserts that after Del Taco was notified of the alleged harassment, it "failed to take prompt and effective remedial action reasonably calculated to end the harassment," including "failing to conduct an adequate investigation," "failing to adequately discipline harassing supervisors and/or coworkers," "failing to follow complaint procedures and take sexual harassment complaints seriously" and "actively deterring employees from making sexual harassment complaints." EEOC seeks class certification for the female employees and asks the court to compel Del Taco to "institute and carry out policies, practices, and programs to…

The U.S. Court of Appeals for the Ninth Circuit has rejected a class member's objection to a settlement between Salov North America Corp. and a class of Filippo Berio olive-oil purchasers. Kumar v. Salov N. Am. Corp., No. 17-16405 (9th Cir., entered September 11, 2018). The appeals court held that the district court properly found the settlement "fair, reasonable, and adequate" after considering "the strength of the plaintiffs' case and the risk involved with further litigation."

Trader Joe's has agreed to pay $1.3 million to settle allegations that it underfills its five-ounce tuna cans. In re Trader Joe's Tuna Litig., No. 16-1371 (C.D. Cal., motion filed September 14, 2018). Under the agreement, class members will receive $29, which will be diluted pro rata if the total amount of claims exceeds the available funds. According to the motion for preliminary approval, the plaintiffs' investigation included "commissioning pressed weight testing of Trader Joe's Tuna and reviewing numerous pressed weight test reports in cooperation with qualified experts from the U.S. National Oceanic and Atmospheric Administration."

A consumer has filed a putative class action alleging that Kind LLC misleadingly markets its products as made from whole fresh fruits. Song v. Kind LLC, No. 18-4982 (E.D.N.Y., filed September 4, 2018). The complaint asserts that the product names and descriptions "use collective names to refer to their components” because they are allegedly made from processed fruit, “by-products or processed derivative ingredients.” The plaintiff also argues that the visual representations on the packaging “emphasize their equivalence to whole fruits.” The complaint further asserts that tropical fruits used in the products are dried using osmotic dehydration, which purportedly treats the fruits with added sugars. In addition, the plaintiff alleges that Kind uses ascorbic acid as a preservative but does not list it among the ingredients. Claiming violations of New York’s General Business Law, negligent misrepresentation and unjust enrichment, the plaintiff seeks class certification, injunctive relief, damages and attorney’s fees.

AriZona Beverages LLC faces a putative class action alleging it misleads consumers by representing the sugar and calorie content of its beverages based on a serving size of eight ounces while its product is sold in 16-ounce cans. Neville v. AriZona Beverages USA LLC, No. 18-5040 (E.D.N.Y., filed September 6, 2018). The complaint asserts that AriZona “engaged in unfair competition to the detriment of consumers by refusing to follow the industry standard which is based upon the size of a can or bottle that a consumer would usually drink in one sitting.” Alleging violations of several state consumer-protection statutes and breach of express warranty, the plaintiff seeks class certification, damages, injunctive or declaratory relief, restitution and attorney’s fees.

The Good Food Institute (GFI) and Tofurky Co. have filed a civil-rights action alleging that Missouri "criminalizes truthful speech by prohibiting 'misrepresenting' a product as 'meat' if that product is 'not derived from harvested production livestock or poultry.'" Turtle Island Foods v. Richardson, No. 18-4173 (W.D. Mo., filed August 27, 2018). The lawsuit responds to Missouri's agriculture bill, which was amended to include the contested language in June 2018 and took effect August 28. The complaint alleges that the statute seeks "to prevent plant-based and clean meat producers, including Tofurky, from accurately informing consumers what their products are: foods designed to fulfill the roles conventional meat has traditionally played in a meal." The plaintiffs argue that consumers are unlikely to be confused because "historically, the term 'meat' has had multiple meanings, including to describe the edible part of any food, such as a fruit or nut"; further, "clean meat" products…

A California federal court has dismissed with prejudice a putative class action alleging that Diet Dr Pepper is falsely advertised as a weight-loss product. Becerra v. Dr Pepper/Seven Up, Inc., No. 17-5921 (N.D. Cal., entered August 21, 2018). The plaintiff alleged that the term “diet” leads consumers to believe the beverage is a weight-loss or weight-management product despite that aspartame could allegedly cause weight gain. The court, which previously dismissed the complaint three times, found implausible "that reasonable consumers would believe consuming Diet Dr Pepper leads to weight loss or healthy weight management absent a change in lifestyle.” The court held that the plaintiff again failed to plead facts that could pass a “reasonable consumer” test and that the plaintiff failed to sufficiently plead a causal link between aspartame and weight gain.

Jamba Inc. and Jamba Juice Co. face a putative class action alleging the company's advertising deceives and misleads consumers about the nutritional value and ingredients of its smoothie beverages. Turner v. Jamba, Inc., No. 18-5168 (N.D. Cal., filed August 23, 2018). The plaintiffs allege that Jamba's smoothies contain more sugars than typical sodas or soft drinks rather than being “simple and nutritionally on par with eating whole fruits and vegetables." In addition, the complaint asserts that the smoothies contain concentrated fruit juice blends—predominantly apple, pear and grape—rather than “whole fruits and veggies.” The plaintiffs also allege that the sherbets and frozen yogurts used in the smoothie blends contain "numerous additives," including sugar, corn syrup, caramel coloring, carrageenan, citric acid, guar gum, lactic acid, locust bean gum and pectin. Claiming violations of California’s and New York’s consumer-protection statutes, the plaintiffs seek class certification, declaratory judgment, injunctive relief, damages and attorney’s fees.

A plaintiff has filed two putative class actions alleging the manufacturers of “organic salt" violate consumer-protection laws against deceptive advertising because salt is an inorganic mineral that “cannot be identified as organic” pursuant to the National Organic Program. Garcia v. HimalaSalt-Sustainable Sourcing, LLC, No. 18-7410 (C.D. Cal., filed August 23, 2018); Garcia v. Frontier Natural Prods. Coop., No. 18-7457 (C.D. Cal., filed August 24, 2018). In both complaints, the plaintiff alleges that she paid a premium for the products—HimalaSalt's Himalayan salt and Simply Organic's flavored salts—because she believed them to be "more healthful than regular salt." Claiming violations of California’s consumer-protection statutes, the plaintiff seeks class certification, injunctive relief, restitution, damages and attorney’s fees in both cases.

A California federal court has granted certification to buyers of Kellogg Co.’s Raisin Bran, Frosted Mini-Wheats and Smart Start who allege they were misled about the health benefits of the products because they contain added sugar. Hadley v. Kellogg Sales Co., No. 16-4955 (N.D. Cal., San Jose Div., entered August 17, 2018). The complaint also contained an allegation about Nutri-Grain bars, but the court declined to certify that class. Kellogg argued that the plaintiffs did not meet the predominance standards for certification, asserting that most consumers did not see the challenged phrases “lightly sweetened” and “wholesome goodness” on the product packaging and further that “the health impact of consuming added sugar—and thus the alleged falsity of the challenged statements—differs for each consumer.” The court agreed as to the “wholesome goodness” phrase on Nutri-Grain bars packaging but disagreed that most consumers would not have seen “lightly sweetened” phrasing based on its…

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