The company that makes Four Loko, a caffeinated malt liquor beverage allegedly responsible for the deaths of five consumers, has reached a settlement with two Liberty Mutual Insurance Co. units which had sought a declaration that a policy exclusion freed them from defending or indemnifying the beverage maker in the underlying lawsuits. The Netherlands Ins. Co. v. Phusion Projects, Inc., No. 12-7968 (N.D. Ill., stipulation of dismissal filed March 11, 2014). The settlement terms have not been disclosed. Details about a Seventh Circuit ruling on the insurance carriers’ duty to defend appear in Issue 508 of this Update. Issue 517
Category Archives Litigation
The Center for Science in the Public Interest (CSPI) and Mercury Policy Project have sued the U.S. Food and Drug Administration (FDA), seeking a declaration that the agency’s delay in responding to their citizen petition on labeling fish with high levels of mercury is unreasonable and violates the Administrative Procedure Act and Federal Food, Drug, and Cosmetic Act. CSPI v. FDA, No. 14-0375 (D.D.C., filed March 10, 2014). Further details about the petition, which seeks labeling on seafood packaging and point-of-purchase signage, appear in Issue 401 of this Update. The plaintiffs also seek an order compelling the agency to issue a final response by a court-imposed deadline. According to the complaint, the plaintiffs submitted the petition to FDA in July 2011 and received a tentative response from the agency beyond the 180-day limit required by FDA regulations. The plaintiffs claim that they have not received any communication from FDA since then…
A federal court in Georgia presiding over a criminal action against the owner and employees of the now-defunct Peanut Corp. of America, purportedly involved in a 2009 nationwide Salmonella outbreak, conducted a hearing on March 13, 2014, to determine whether the expert testimony proffered as to owner Stewart Parnell’s ability to form the intent to commit the alleged crimes is admissible under Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993). According to defense expert Joseph Conley, a clinical psychologist, Parnell has an Attention Deficit Hyperactivity Disorder (ADHD) condition. Defense counsel claims that Conley’s testimony will show that Parnell did not commit the alleged crimes because he did not factually acquire the knowledge necessary to form an intent about the actions the government has alleged. Conley would testify that Parnell’s ADHD is so severe that he likely never read, nor understood the significance of, many of the emails on…
Snack maker Snyder’s Lance, Inc. has filed a motion to dismiss an amended class complaint filed by representative plaintiffs alleging that the company misleads consumers by labeling its products as “natural” when they contain genetically modified ingredients. Barron v. Snyder’s Lance, Inc., No. 13-62496 (S.D. Fla., Miami Div., motion filed March 10, 2014). Among other matters, the company argues that the plaintiffs’ “premium price” theory of harm is not plausible, they lack standing to seek injunctive relief and their failure to address their understanding of the term “natural” is fatal to their claims. As to the price theory, Snyder’s-Lance contends that the plaintiffs’ claims require the court to assume that price differences between its products and those of “rival brands” are based solely on the “natural” labeling. According to the company, the alleged price differential could be due to any number of other factors, such as better taste, more appealing…
A federal court in California has determined that the tasks an employee performed only when working the closing shift for Starbucks Corp. consumed a de minimis amount of time and thus dismissed his claims that the company violated the state Labor Code by failing to pay him for that time. Troester v. Starbucks Corp., No. 12-7677 (C.D. Cal., order entered March 7, 2014). According to the court, the software Starbucks used during the relevant time period required an employee to clock out before initiating the store closing procedure, which involved setting the store alarm and locking the door, tasks that took no more than one to two minutes. Other tasks the employee undertook included walking employees to their cars or staying with them until they were picked up, placing forgotten patio furniture indoors, or even re-entering the store to retrieve an employee’s personal belongings. In the court’s view, “[e]ven assuming all…
A federal court in Florida has dismissed, without prejudice, a putative statewide class action filed against Amy’s Kitchen, alleging that the company misleads consumers by identifying the sugar in its products as “evaporated cane juice” (ECJ). Reilly v. Amy’s Kitchen, Inc., No. 13-21525 (S.D. Fla., order entered March 7, 2014). The court agreed with the company that, because the court had previously dismissed claims as to products the representative plaintiff had not purchased, the plaintiff could not, at the time she filed the complaint, meet the Class Action Fairness Act’s (CAFA’s) jurisdictional threshold of $5 million. Information about the court’s earlier ruling appears in Issue 507 of this Update. While jurisdictional facts are assessed at the time of removal, and post-removal events do not deprive courts of subject matter jurisdiction under CAFA, “if a claim of the required jurisdictional amount is made in good faith, the claim controls unless it…
A French organic winemaker has reportedly appeared in court to answer to charges that he defied an official order to spray his vineyard with a pesticide to prevent the spread of a leafhopper insect believed to be responsible for a devastating bacterial disease that has affected vines in Burgundy’s Côte-d’Or region, where Emmanuel Giboulot produces Côte de Beaune and Hautes-Côtes de Nuits organic wines. He claims that the pesticide does not work and is harmful to pollinating insects such as bees. He also apparently insists that more natural means can be used to fight the disease. According to a news source, Giboulot faces a six-month prison sentence and €30,000 (US$41,000) fine for failing to apply the insecticide treatment to his vineyard in July 2013. An online petition about his case has reportedly been signed by more than 40,000 supporters, and a large crowd gathered outside the Dijon court on March…
A former Chiptole Mexican Grill employee has brought a wage-and-hour complaint against the company, including claims of harassment, gender discrimination, retaliation, battery, and wrongful termination. Roberts v. Chipotle Mex. Grill, Inc., No. BC537487 (Cal. Super. Ct., Los Angeles Cty., filed February 26, 2014). Filing on behalf of herself and in a representative capacity on behalf of others, plaintiff Tedi Roberts claims that Chipotle (i) failed to pay legally required overtime or compensation for hours worked; (ii) failed to provide legally required meal periods and rest periods or accurate wage statements; (iii) failed to take action when she complained about sexual harassment and battery; (iv) refused to change her schedule or provide a transfer to help her avoid further harassment, battery, embarrassment, and humiliation; and (v) retaliated against her—terminated her employment—for complaining about the conditions of her employment including through the “protected activity” of social networking. Roberts avers that she has…
A California resident has filed a putative statewide class action against PepsiCo, Inc., alleging that the company “touts Pepsi One as follows—‘Full Flavor and One Calorie are now living in complete harmony inside Pepsi One—the drink that unites the taste of regular cola with all the things you like about diet cola’"—without disclosing that it contains the caramel-coloring chemical 4-methylimidazole (4-MEI), identified by the state as a carcinogen under the Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65). Ree v. PepsiCo, Inc., No. 14-0328 (C.D. Cal., filed March 4, 2014). According to the complaint, the absence of the disclosure “was a material and substantial factor which influenced [the plaintiff’s] decision to purchase Pepsi One. In fact, Plaintiff would not have purchased the Product had she known that it contained 4-MEI well in excess of Proposition 65 guidelines.” The plaintiff includes information from a Consumer Reports article about…
According to a news source, counsel for POM Wonderful LLC has urged federal district court Judge Dean Pregerson to decertify the nationwide class action he certified in consolidated false advertising multidistrict litigation, arguing that the U.S. Supreme Court’s decision in Comcast v. Behrend and the plaintiffs’ failure to establish a valid damages model supported the company’s request. In re POM Wonderful LLC Mktg. & Sales Practices Litig., MDL No. 2199 (C.D. Cal., motion argued March 3, 2014). Additional information about the court’s decision to certify the class appears in Issue 457 of this Update. While the judge did not rule on the motion, he apparently expressed skepticism about whether the plaintiffs would be able to establish that class members purchased the juice for its various advertised health benefits only, rather than buying it for other reasons, such as taste, color or shelf location. He also reportedly asked whether the class certification…
