A consumer has filed a putative class action against Buffalo Trace Distillery, Inc., Old Charter Distillery Co. and Sazerac Co. alleging the companies misrepresent Old Charter Bourbon as aged for eight years before entering the market. Parker v. Buffalo Trace Distillery, Inc., No. 16-8986 (S.D.N.Y., filed November 18, 2016). The complaint argues that Old Charter was aged for eight years before a switch in manufacturing practices in 2014, and the bottle's labels were adjusted to remove the eight-year claim. Where the label once said "Aged 8 years," the label was changed to merely display an 8; in another spot on the label, the text reads, "gently matured for eight seasons." The plaintiff alleges negligent misrepresentation, fraud, breach of warranty, unjust enrichment and violations of New York and federal law. Issue 624
Category Archives U.S. Circuit Courts
Two consumers have filed a projected class action against Arizona Canning Co. alleging that the image of a bowl full of beans on its Sun Vista products misleads consumers into believing the can is filled completely with beans rather than filled with some beans and a large amount of water. Beckman v. Ariz. Canning Co., No. 16-2792 (S.D. Cal., removed November 14, 2016). The complaint asserts that the “picturesque” label image depicts “a bowl full of plump and hearty beans with glimmer of shine, and little to no water,” but when the can is opened, it reveals “the repulsive sight of bean water” and “an inappropriately large amount of water and a small amount of beans.” The complaint admits that a reasonable consumer “would expect to find some water within the container,” but one plaintiff’s “home investigation” apparently found that a 29-ounce can of pinto beans contained 13 ounces of…
Christian Rivas, owner of Oasis Brands Inc., has been sentenced to 15 months in prison for two charges that he sold cheese contaminated with Listeria monocytogenes after the U.S. Food and Drug Administration (FDA) instructed the company to stop distribution until it remedied its practices. FDA inspected Oasis in August 2014, found several violations and required Oasis to halt distribution of any products until they were cleared by laboratory testing. Rivas continued distributing Oasis' cheese, which then failed a random Listeria test at a Virginia grocery store. In addition to his 15 months in prison, Rivas is subject to one year of supervised release. See South Florida Business Journal, November 16, 2016. Issue 623
The Ninth Circuit Court of Appeals has ruled that the attorneys general of six states—Missouri, Nebraska, Oklahoma, Alabama, Kentucky and Iowa—do not have standing to sue California AG Kamala Harris in an attempt to block enforcement of a law requiring egg-production facilities to provide hens enough space to fully extend their limbs and turn around freely in the confinement in which they spend the majority of the day. Missouri v. Harris, No. 14-17111 (9th Cir., order entered November 17, 2016). The court found that the plaintiff states did not have parens patriae standing, the standing provided to a governmental entity as the legal protector of its citizens. The states could not “articulate an interest apart from the interests of private egg producers, who could have filed an action on their own behalf,” the court held. Further, the states’ allegations about potential economic damages were speculative, and “the allegations of discrimination were…
A consumer has filed a projected class action against Krispy Kreme Doughnuts, Inc., alleging the company’s blueberry, maple and raspberry products are not made with the ingredients in their fruit-based names. Saidian v. Krispy Kreme Doughnuts, Inc., No. 16-8338 (C.D. Cal., filed November 9, 2016). The complaint highlights health benefits apparently linked to raspberries, blueberries, maple syrup and maple sugar, asserting that Krispy Kreme charged a premium for its products to capitalize on those perceived health benefits while using imitation versions of the ingredients. The plaintiff also distinguishes the blueberry, raspberry and maple products from Krispy Kreme’s lemon, strawberry and cinnamon apple products, because the latter group does contain its advertised ingredients, leading to further consumer confusion. For allegations of fraud, misrepresentation and violations of California statutes, the plaintiff seeks class certification, an injunction, damages and attorney’s fees. Issue 622
Heartland Consumer Products, producer of sucralose-based sweetener Splenda®, has filed a lawsuit against Dunkin’ Brands, Inc. and its franchisees alleging the restaurant chain misleads its customers into believing it carries Splenda® while providing a different sweetener made in China. Heartland Consumer Prods. v. Dunkin’ Brands, Inc., No. 16-3045 (S.D. Ind., Indianapolis Div., filed November 7, 2016). According to the complaint, Dunkin regularly purchased Splenda® from Heartland until April 2016, when it switched to a different sucralose sweetener. Heartland asserts that Dunkin employees continue to tell customers that the sweetener is Splenda even though the new sweetener is a “Chinese-made, off-brand sucralose.” Heartland further argues that Dunkin appropriated its “Sweet Swaps” program by creating a Dunkin-branded “Smart Swaps” program. The complaint asserts that Heartland received multiple reports of consumer confusion, including one customer who reported that a Dunkin employee said Dunkin had “bought out Splenda.” For allegations of trademark infringement, dilution, false…
A federal grand jury has indicted Jeffry Hill of Hill Wine Co. on charges that he sold wine falsely labeled as originating from Napa Valley in California. United States v. Hill, No. 16-CR-0454 (N.D. Cal., indictment entered November 1, 2016). The indictment accuses Hill of growing grapes outside the designated Napa Valley borders and selling the grape juice, bulk wine or bottled wine as made only from Napa Valley grapes, which apparently earned him more than $1.5 million. Hill also allegedly misrepresented the varietals of grapes he sold and created fraudulent bills of lading and inventory records. The indictment asserts that Hill also concealed the true origins of the grapes from his employees by moving grapes between Hill Wine Co.’s three facilities and intercepting trucks shipping grapes to alter the paperwork indicating their origin or varietal. Hill faces eight charges of mail fraud and wire fraud. Issue 622
A California federal court has dismissed a consumer’s putative class action against AdvancePierre Foods, Inc. alleging the company both physically and financially harmed her by selling her a microwavable sandwich made with partially hydrogenated oil (PHO). Hawkins v. AdvancePierre Foods, Inc., No. 15-2309 (S.D. Cal., order entered November 8, 2016). The court agreed with AdvancePierre’s argument that the U.S. Food and Drug Administration’s June 2015 final determination removing PHO’s status as a material generally recognized as safe for use in food implemented a June 2018 deadline for compliance to avoid allowing consumers to obtain damages for the use of PHO in the meantime. Under the Consolidated Appropriations Act of 2016 (CAA), “No partially hydrogenated oils as defined in the [Final Determination] shall be deemed unsafe . . . and no food that is introduced into interstate commerce that bears or contains a partially hydrogenated oil shall be deemed adulterated . .…
A California federal court has denied Vigo Importing Co.’s motion to dismiss a lawsuit alleging the company mislabels its products as containing octopus when they are actually composed of jumbo squid. Fonseca v. Vigo Importing Co., No. 16-2055 (N.D. Cal., order entered October 26, 2016). Vigo Importing sought to dismiss the claim on jurisdictional grounds, arguing that based on its sales figures, the amount in controversy could not possibly meet the $5 million threshold required by the Class Action Fairness Act to allow a federal court to consider the case. The court disagreed, noting that the sales price was only part of the calculation; the potential damages determination requires information on the cost of the products as well as the value of the product if composed of jumbo squid. Details on the complaint appear in Issue 602 of this Update. Issue 621
A New York federal court has dismissed a consumer’s lawsuit alleging Mondelez International sells its Sour Patch Watermelon candy with unpermitted slack fill. Izquierdo v. Mondelez Int’l Inc., No. 16-4697 (S.D.N.Y., order entered October 26, 2016). The lead plaintiff had asserted that the box he purchased contained 28 pieces of candy but had enough space for 50 pieces. Additional details about the complaint appear in Issue 609 of this Update. After finding that the plaintiff did not have standing for an injunction, the court turned to the candy company’s arguments, dismissing its assertion that the accurate net weight released it from liability. Further, the court found it inappropriate to consider at the motion-to-dismiss stage whether a consumer could determine the contents of the package by shaking or squeezing it. The court was persuaded by Mondelez’s argument that the plaintiffs had failed to state a claim because they did not clarify what…
