Texas has settled a trademark dispute with Alamo Beer Co. and Old 300 Brewing after the state intervened in Alamo Beer’s lawsuit alleging Old 300 infringed its trademarked Alamo silhouette. Alamo Beer Co. v. Old 300 Brewing, LLC, No. 14-285 (W.D. Tex., consent order entered April 28, 2015). According to court documents, the settlement establishes that Texas owns the premises of the Alamo in downtown San Antonio and “[a]s the owner, the State also owns the image of the Alamo and the right to commercialize that image to whatever extent the State, as owner, decides to do so. Such commercialization includes the right to use or license the use of the image on product labels.” The consent order further lists the state’s federally registered trademarks related to the Alamo, which it uses to sell products at the landmark’s gift shop. Under the final judgment, Alamo Beer and Old 300 are permanently…
Category Archives U.S. Circuit Courts
A California federal court has denied Boulder Brands, Inc.’s motion to dismiss a lawsuit alleging that the company misrepresents the cholesterol-blocking effect of the plant sterols in its Smart Balance® butter products because the amount of plant sterols is “not enough to generate a ‘clinically meaningful cholesterol blocking effect.’” Mitchell v. Boulder Brands, Inc., No. 12-1862 (S.D. Cal., order entered April 16, 2015). The court declined to reconsider its earlier decision that “the products’ labels could plausibly be read as implying a ‘clinically meaningful cholesterol blocking benefit’ and that this implied representation is ‘specific, measurable, and falsifiable.’” The expert report upon which the court has based its decision stated that a minimum of 800 milligrams of plant sterols—eight times the content in one serving of the Smart Balance® product—would be the minimum to meaningfully block cholesterol. Issue 563
A Vermont federal court has denied a preliminary injunction that would have prevented from taking effect the nation’s first state law requiring the labeling of food products manufactured with genetically modified organisms (GMOs). Grocery Mfrs. Ass’n v. Sorrell, No. 14-0117 (D. Vt., order entered April 27, 2015). Several food industry groups challenged the statute’s provisions requiring GMO labeling and preventing foods with GMO ingredients from bearing a “natural” label. The court first examined the industry groups’ claim that the statute violates the dormant Commerce Clause of the U.S. Constitution. It agreed with the groups’ argument that the statute seems to prohibit the use of “natural” in signage and advertising “regardless of where or how those activities take place,” and accordingly refused to dismiss Vermont’s motion to dismiss that aspect of the Commerce Clause claim. The rest of the Commerce Clause claims, based on the argument that the statute would require…
A California federal court has granted in part and dismissed in part a motion to dismiss a putative consumer class action against The Hain Celestial Group alleging that the company mislabels its Sunflower Dream Drink as “all natural” despite containing artificial or synthetic ingredients, including xanthan gum and folic acid. Anderson v. The Hain Celestial Grp., Inc., No. 14-3895 (N.D. Cal., San Jose Div., order entered April 8, 2015). Hain challenged the plaintiff’s standing to sue for the alleged mislabeling of “substantially similar” products she did not personally purchase as well as standing for injunctive relief because she did not indicate that she would purchase Sunflower Dream Drink again. The court disagreed with the first argument, finding that the products the plaintiff did not purchase are substantially similar because they feature the same “all natural” representation and contain artificial, synthetic or extensively processed ingredients. Discussing the argument against standing for an…
The Center for Food Safety, Center for Environmental Health and Beyond Pesticides have filed a lawsuit against the leaders of the U.S. Department of Agriculture (USDA), Agricultural Marketing Service and National Organic Program (NOP) arguing that USDA failed to allow public comments on a contaminated compost rule before issuing a guidance document on the subject. Ctr. for Envtl. Health v. Vilsack, No. 15-1690 (N.D. Cal., filed April 14, 2015). The 2011 guidance at issue allows organic producers to use compost materials treated with pesticides. According to the complaint, “NOP regulations expressly prohibit fertilizers and compost from containing any synthetic substances not included on the National List” of approved exceptions, but the Contaminated Compost decision “contravened that legal requirement, purporting to establish that organic producers may in fact use these contaminated plant and animal materials in compost under certain circumstances.” The decision was never subject to public comment, the plaintiffs argue,…
Days after the U.S. Food and Drug Administration (FDA) released a March 2015 letter warning Kind LLC against using the word “healthy” to describe several of its products, a consumer filed a class action against the company alleging negligent misrepresentation and violations of California consumer protection statutes. Kaufer v. Kind LLC, No. 15-2878 (C.D. Cal., filed April 17, 2015). The FDA Warning Letter listed the packaging of several products that an agency investigation apparently determined violated the Federal Food, Drug, and Cosmetic Act because the products’ nutrient contents do not meet federal requirements to be described as “healthy.” The letter also warned Kind against the use of “+” or “plus” as well as “No Trans Fats.” The putative class action complaint cites the FDA letter, arguing that the “healthy,” “+” or “plus” and “no trans fats” claims mislead consumers into believing that they are purchasing a healthful product. The plaintiff…
A consumer has filed a purported class action against Natural & Tasty LLC alleging that the company misleads consumers by labeling its Goldbaum Quinoa Crisps® as “All Natural” and free of genetically modified organisms (GMOs) despite containing ingredients made from corn and soy because “almost all corn and soy grown in the United States are grown from seeds that have been genetically modified.” Slavinski v. Natural & Tasty LLC, No. 15-80451 (S.D. Fla., filed April 7, 2015). The complaint asserts that nearly all U.S. corn and soy are grown from GM seeds, “and as such, almost all corn and corn-based, as well as soy and soy-based ingredients in the United States are in fact unnatural, synthetic, artificial, and genetically modified ingredients.” The plaintiff points to several ingredients in the quinoa product as unnatural, including maltodextrin, whole grain corn flour, corn starch, and vegetable oil. While similar lawsuits have cited the reasonable…
A consumer has filed a putative class action in Louisiana federal court against several California wineries alleging that their products contain “dangerously high” levels of arsenic, echoing a similar lawsuit filed in California in March 2015. Crespo-Bithorn v. The Wine Grp. Inc., No. 15-1424 (M.D. La., filed April 20, 2015). The complaint alleges that the wineries “sell and distribute wine to consumers at inorganic arsenic levels significantly higher than what the State of California considers the maximum acceptable limit for safe daily exposure” and asserts that the advertising and marketing of each wine was deceptive because it failed to warn of the arsenic levels. The plaintiff seeks national and state class certification and damages for the Louisiana cause of action of redhibition as well as alleged violations of Louisiana consumer protection statutes and the Magnuson-Moss Warranty Act. Details about the March lawsuit appear in Issue 559 of this Update. …
Saeilo Enterprises Inc., and Alphonse Capone Enterprises Inc., have reportedly reached a settlement in a lawsuit alleging trademark and trade dress infringement for a bottle of vodka branded as “Tommy Guns Vodka” and shaped like Saeilo’s Thompson submachine gun. Saeilo Enterprises, Inc. v. Alphonse Capone Enterprises, Inc., No. 13-2306 (N.D. Ill., notification of docket entry filed April 21, 2015). The gun manufacturer alleged in its complaint that the vodka company misappropriated the trade dress and trademark of the Thompson gun with the shape of the bottle and the name, and Saeilo sought an injunction, damages and attorney’s fees. A notice filed with the court indicates that the parties have reached a settlement and will file a stipulation to dismiss, but terms of the settlement were unavailable. Issue 562
A New Jersey federal court has granted Gerber’s motion to compel discovery of medical records in a consumer putative class action alleging that the company misrepresented its probiotic formula as capable of improving infant immune systems. In re Gerber Probiotic Sales Practices Litig., No. 12-835 (D.N.J., order entered April 10, 2015). Gerber requested medical records for the children who ingested the products, but the plaintiffs objected that the “overly broad” request violated their rights of privacy and that the records were subject to physician-patient privilege. The court agreed with Gerber, finding “a legitimate need for medical records as there is no other source that could test the actual effectiveness of the products that claim to produce immune system health. Proof in the form of scientific studies and expert testimony may not be sufficient,” the court said, so “actual facts or the lack thereof may be essential.” Further, the medical records…
