A federal court in California has granted a motion for final settlement approval in a nationwide class action alleging that Kellogg Co. falsely advertised its Frosted Mini-Wheats cereal products as a food that could help improve children’s attentiveness by 20 percent. Dennis v. Kellogg Co., No. 09-1786 (S.D. Cal., order entered September 10, 2013). Details about prior rulings in the case appear in Issue 483 of this Update. The court had previously given reluctant approval to the preliminary settlement, concerned that the class relief appeared to have diminished after remand from the Ninth Circuit, with attorney’s fees appearing to remain constant—the original settlement had a cash value of about $10.5 million with $2 million for attorney’s fees and claims administration; the revised settlement has a cash value of $4 million with $1.5-2 million reserved for attorney’s fees and claims administration. According to the court, the plaintiffs demonstrated that “the seemingly unchanged total…
Category Archives Litigation
A second amended complaint has been filed in a putative nationwide class action alleging that The Hain Celestial Group’s food and beverage product labels render their products misbranded and further mislead consumers because they use the terms “No Trans Fat,” “Evaporated Cane Juice” or “All Natural” in violation of state law. Smedt v. The Hain Celestial Group, Inc., No. 12-3029 (N.D. Cal., filed August 30, 2013). Details about the court ruling dismissing the claims with leave to amend appear in Issue 495 of this Update. The plaintiff has omitted any claims that the company’s website misled consumers and has otherwise attempted to address the court’s concerns about ambiguous fraud allegations in her initial pleadings.
While dozens of consumers have purportedly experienced nausea and cramps after eating Chobani Greek Yogurt products allegedly contaminated with mold, a California resident without apparent physical injury has filed a putative class action against the company to recover damages for purchasing a defective product. Green v. Chobani, Inc., No. 13-2106 (S.D. Cal., filed September 9, 2013). Plaintiff Harold Green alleges that he purchased 16 cups of yogurt subject to a company recall and that he and his family members consumed some of them before the September 5, 2013, recall date. After receiving notice of the recall, the plaintiff claims that he returned six cups to the store. Seeking to represent a nationwide class and statewide subclass of purchasers, the plaintiff alleges negligence and breach of the implied warranty of merchantability for food. He requests restitution, disgorgement, interest, compensatory damages, attorney’s fees, and costs. See NBCNews.com, September 10, 2013. Issue…
A federal court in Colorado has reduced the damages awarded to a man who allegedly contracted bronchiolitis obliterans, a debilitating respiratory condition, after consuming microwave popcorn containing the butter flavoring compound diacetyl. Watson v. Dillon Cos., Inc., No. 08-91 (D. Colo., judgment entered September 5, 2013). The jury awarded the plaintiff and his wife more than $7 million, including punitive damages, apportioned among a number of defendants, and the court reduced the total award by more than half to $3.04 million with interest. Additional information about the lawsuit appears in Issues 244, 454 and 480 of this Update. The court agreed with defendant Gilster-Mary Lee, a private label food manufacturer, that a statutory cap applied to the $800,000 non economic damages award against it because the plaintiff discovered or should have discovered his lung injury and its cause before a statutory cut-off in January 2008. The court further refused to…
A federal court in the District of Columbia has denied the American Meat Institute’s motion for a preliminary injunction in a challenge to the amended country-of-origin labeling (COOL) rules adopted by the U.S. Department of Agriculture’s (USDA’s) Agricultural Marketing Service in response to a World Trade Organization (WTO) determination that the original rules violated the WTO Agreement on Technical Barriers to Trade by according less favorable treatment to foreign livestock. Am. Meat Inst. v. USDA, No. 13-1033 (D.D.C., decided September 11, 2013). The court was not persuaded that the plaintiffs, meat processing interests, were likely to succeed on the merits of their First Amendment and statutory challenges to the amended rule. Additional information about the challenge appears in Issue 495 of this Update. Assessing the First Amendment claims under a lenient reasonableness standard because the rule involved commercial speech that mandated purely factual and uncontroversial disclosures, the court determined that…
The Ninth Circuit Court of Appeals has affirmed a lower court ruling denying the request for a preliminary injunction to halt the application of a California statute that forbids the sale of products resulting from force feeding a bird to enlarge its liver and prohibits force feeding birds to enlarge their livers beyond normal size. Association des Éleveurs de Canards et d’Oies du Québec v. Harris, No. 12-56822 (9th Cir., decided August 30, 2013). While the court dismissed the governor and state as defendants on the basis of immunity, it agreed with the district court that the state attorney general was not immune from suit under the Eleventh Amendment. Additional information about the lawsuit appears in issues 446 and 454 of this Update. Because the court found that the plaintiffs, out-of-state foie gras producers and a California restaurant that sold the product before the law took effect, were not likely…
According to a news source, the federal court that heard a challenge to the U.S. Department of Agriculture’s (USDA’s) revision to its country-of-origin labeling (COOL) rules to comply with a World Trade Organization ruling stated during the hearing that it would issue a decision on the plaintiffs’ request for a preliminary injunction within 14 days. Am. Meat Inst. v. USDA, No. 13-1033 (D.D.C., oral argument held August 27, 2013). Additional information about a dispute that has split trade associations representing different parts of the meat production industry appears in issues 490 and 495 of this Update. The organizations seeking the injunction reportedly argued that “[t]his is a regulation the agency concedes is a de minimis benefit . . . for a de maximus cost.” They contend that the new rules violate their First Amendment rights and could put them out of business. A USDA attorney apparently argued that the new…
The Mexican brewer that makes Dos Equis® beer and has advertised it with a distinctive campaign since 2007 has brought a trademark and copyright infringement lawsuit against a New Jersey-based company and its president for an advertising campaign that allegedly mimics the brewer’s “Most Interesting Man in the World®” ads. Cervezas Cuauhtémoc Moctezuma, S.A. de C.V. v. KCI, Inc., No. 13-5044 (D.N.J., filed August 22, 2013). According to KCI’s LinkedIn page, the company offers storage area network (SAN) maintenance services. The complaint alleges that defendants have filed trademark applications for and use in a YouTube video the marks “The Most Interesting SAN Architect in the World” and “I Don’t Always Use Third Party Companies When I Buy and Maintain SAN Equipment But When I Do It’s Always Team KCI . . . Stay Convergent My Friend.” This compares with the brewer’s registered marks “The Most Interesting Man in the World” and…
A federal court in Illinois has refused to certify a multistate class of consumers who were allegedly deceived under the consumer protection statutes and unjust enrichment laws of eight named states by a company that, at one time, either misrepresented or failed to indicate that its single serving coffee product contained “instant” or “soluble” coffee rather than fresh ground coffee and a filter. McManus v. Sturm Foods, Inc., No. 11-565 (S.D. Ill., order entered August 26, 2013). According to the court, the class, defined as all consumers in the eight states who purchased the product from September 2010 until the present, included many who had no injury or had not relied on any product representations. Among the putative class members were individuals who (i) knew that the product was instant coffee and bought it anyway because it made no difference to their purchasing decision, (ii) purchased the product after the…
A federal court in California has denied the motion to dismiss filed by J.M Smucker Co. in a putative class action alleging that it misleads consumers by labeling four of its Crisco® oil products as “All Natural” because they are purportedly made with genetically modified (GM) corn, canola and soy crops and because they are highly processed. Parker v. J.M. Smucker Co., No. 13-690 (N.D. Cal., order entered August 23, 2013). Finding that the amended complaint met the plausibility pleading standard, the court ruled that the plaintiff had standing to pursue claims as to products she had not purchased because they were sufficiently similar. In the court’s view, “They are all the same kind of product. They all have highly similar labels. Plaintiff alleges the same actionable conduct as to each of them.” The court also rejected the defendant’s contention that the claims were preempted in light of the Food…
