A federal court in the Southern District of California has transferred to the Northern District a lawsuit filed in January 2014 against Pepsico, Inc., alleging that its products violate the state’s Safe Drinking Water and Toxic Enforcement Act of 1986 (Prop. 65) because they contain 4 methylimidazole (4-MEI), a chemical included on the Prop. 65 list of substances known to the state to cause cancer, and the company has not provided appropriate consumer warnings. Riva v. Pepsico, Inc., No. 14-0340 (S.D. Cal., order entered April 30, 2014). Eight similar federal lawsuits against Pepsico were filed either in the Northern District or transferred there and are scheduled for a May 29, 2014, case management conference. Finding that transfer to the Northern District would promote the efficient use of judicial resources, the court granted the defendant’s motion. The plaintiffs had argued that under the first-to-file rule, all of the cases should have been…
Category Archives Litigation
A federal court in California has dismissed all but one claim in a putative consumer-fraud class action against The Hershey Co., finding that, based on his deposition, the plaintiff relied only on the label claims for antioxidants in making his purchasing decisions. Khasin v. The Hershey Co., No. 12-1862 (N.D. Cal., order entered May 5, 2014). Information about a prior court ruling that dismissed other claims appears in Issue 463 of this Update. The court granted the company’s motion for summary judgment as to claims made on its website or in off-label advertising and as to “any claims based on alleged misrepresentations or omissions regarding vanillin, PGPR, serving size and alkalized cocoa powder.” The court also granted summary judgment as to claims alleging a failure to make disclaimers on the company’s mint products, i.e., that they should not be substituted as an entrée, lunch or meal and that they are not…
The University of California Davis, has reportedly filed a motion in California state court to dismiss the breach of contract suit that the California Strawberry Commission filed in October after it learned that the university may stop breeding and selling strawberry germplasm to farmers. UC Davis has developed and sold its strawberry germplasm at low royalty rates to the commission for several decades through a research program headed by two professors. According to the commission’s complaint, the professors announced their intention to resign in 2012 and take their research to a private company, raising the cost of royalties and limiting the sales to select strawberry growers, and as a result, the university notified the commission of its intention to shutter the program. In its complaint, the commission argued that its growers have directly funded the university program, so they are entitled to receive the new strawberry varieties that the professors…
A federal magistrate in Florida has decided that the opinion proffered by the plaintiffs’ expert in litigation challenging “brain health” marketing claims for algal-derived DHA Omega-3 fortified milk products is unreliable, thus granting the defendant’s motion to exclude it. In re Horizon Organic Milk Plus DHA Omega-3 Mktg. & Sales Practices Litig., MDL No. 12-2324 (S.D. Fla., order entered April 28, 2014). The ruling affects claims brought by consumers in six states alleging that the defendant violated state laws by falsely claiming that the DHA in its products “Supports Brain Health” and “Supports a Healthy Brain,” and that “competent, scientific evidence shows that these claims are false.” While the court found that most of the defendant’s arguments in support of exclusion went to the weight of the testimony rather than its admissibility, it agreed that the expert failed to show how small studies involving 49 women and 658 children in the…
To settle claims that it allegedly deceived consumers by advertising and labeling its Dreamfields pasta products as a low-glycemic index and low-carbohydrate alternative to traditional pasta, Dakota Growers Pasta Co. has agreed to establish a $5-million settlement fund and pay an additional $2.9 million to plaintiffs’ counsel. Mirakay v. Dakota Growers Pasta Co., No. 13-4429 (D.N.J., motion for preliminary settlement approval filed April 14, 2014). The company has also agreed to remove the allegedly false or misleading statements from Dreamfields packaging for at least one year. Under the settlement, which requires certification of a nationwide class of consumers and approval by the court, those who purchased the pasta online will automatically receive $1.99 for every box purchased. Class members who purchased the products in stores and submit a valid claim form will be limited to reimbursement for 15 boxes of pasta. Any funds remaining will be used to adjust each…
Four former employees of T.G.I. Friday’s, Inc. have filed a putative class action against the restaurant and its parent company, Carlson Restaurants, Inc., to recover unpaid wages, including overtime compensation and unlawful deductions. Flood v. Carlson Restaurants Inc., No. 14-2740 (S.D.N.Y., filed April 17, 2014). The former employees claim that T.G.I. Friday’s managers required them to work in violation of the Fair Labor Standards Act and New York Labor Law. In the complaint, the employees allege that managers required tip-earning workers to do “side work” like rolling silverware, cleaning the restaurant and other tasks that did not merit them tips while the restaurant paid them at the reduced minimum wage reserved for tipped workers. They further allege that managers prevented the employees from receiving their earned overtime pay by lowering the amount of time the employees were on the clock each week to below 40 hours and that the restaurant…
A federal court in Georgia has denied a motion to sever the criminal charges filed against the former owner of the Peanut Corp. of America, linked to a 2009 nationwide Salmonella outbreak, from charges filed against other company employees. United States v. Parnell, No. 13-cr-12 (M.D. Ga., order entered April 24, 2014). Information about a hearing conducted to assess the reliability of the defendant’s proffered expert—retained to testify about Stewart Parnell’s purported Attention Deficit Hyperactivity Disorder— appears in Issue 517 of this Update. The court has also continued an April 28 status conference in light of a previous ruling rescheduling the trial. Issue 521
A federal court in Missouri has determined that a man who alleges employment discrimination and retaliation in violation of the Americans with Disabilities Act (ADA) on the basis of his severe obesity has sufficiently stated his claims and may proceed with his action. Whittaker v. America’s Car-Mart, Inc., No. 13-0108 (D. Mo., order entered April 24, 2014). The plaintiff allegedly began working for the defendant in August 2005 and was discharged from his general manager position in November 2012, purportedly because of his disability. He claims that the defendant regarded him as having a physical impairment under the ADA and “as being substantially limited in a major life activity, walking, as a result of his obesity.” To support its argument that the alleged disability “is not an actual disability under the ADA unless it is related to an underlying physiological disorder or condition and that plaintiff fails to allege that his…
A federal court in California has denied the motion to certify statewide monetary or injunctive relief classes in litigation alleging that J.M. Smucker’s labels for Uncrustables and Crisco Original and Butter Flavor Shortening products “mislead consumers into believing that they are healthful, when in reality they both contain trans fat and Uncrustables also contain high fructose corn syrup.” Caldera v. The J.M. Smucker Co., No. 12-4936 (C.D. Cal., decided April 15, 2014). As to monetary relief, the court dismissed the motion to certify with prejudice. The court agreed with the defendant that the plaintiff could not satisfy the predominance requirement as to her claims for monetary relief because she failed to identify any method of proving damages on a class-wide basis other than relying on the defendant’s California sales data. According to the court, this is insufficient to support a claim for restitution, because “this is not a case where class…
A federal court in California has certified a statewide class of those who purchased Twinings North America’s green, black and white tea products labeled as a “Natural Source of Antioxidants.” Lanovaz v. Twinings N. Am., Inc., No. 12-2646 (N.D. Cal., order entered April 24, 2014). Details about a previous ruling narrowing the claims appear in Issue 509 of this Update. So ruling, the court rejected the defendant’s argument that the proposed class lacked ascertainability “because few, if any, company records exist to identify purchasers or which products they bought, and consumers did not keep receipts or product containers.” According to the court, many classes similar to this one had been certified by courts in the Ninth Circuit to the extent that the “class definition describes a set of common characteristics sufficient to allow a prospective plaintiff to identify himself or herself as having a right to recover based on the description.”…
