A federal jury has reportedly awarded $7.2 million to a man who claimed that he developed bronchiolitis obliterans, a debilitating lung disease also known as popcorn lung, from consuming two to three bags of microwave popcorn every day for six years. Watson v. Dillon Cos., Inc., No. 08-91 (D. Colo., decided September 19, 2012). Details about the case appear in issue 244 of this Update. The settlement that the plaintiff reached with one of the defendants, a flavoring manufacturer, is discussed in Issue 331 of this Update. According to a news source, the jury found that Gilster-Mary Lee Corp., which manufactured the popcorn, and a retailer were negligent for failing to warn that diacetyl, the butter flavoring chemical in the product, was dangerous. The manufacturer was found liable for 80 percent of the damages, and the supermarket chain was found liable for 20 percent. The retailer has indicated that it…
Category Archives Litigation
A European Court of Justice panel has determined that a German winemaker may not, under European Union law, place labels on its bottles including the word bekömmlich (meaning digestible, wholesome or nourishing). Deutsches Weintor eG v. Land Rehinland-Pfalz, Case C 544/10 (E.C.J., decided September 6, 2012). According to the court, “[b]y highlighting only the easy digestion of the wine concerned, the claim at issue is likely to encourage its consumption and, ultimately, to increase the risks for consumers’ health inherent in the immoderate consumption of any alcoholic beverage. Consequently, the prohibition of such claims is warranted in light of the requirement to ensure a high level of health protection for consumers.” The matter returns to a German court for final ruling.
A New York resident has filed a putative class action in a California federal court seeking to recover damages allegedly sustained by pet owners whose dogs became sick after eating “Chinese Chicken Jerky.” Langone v. Del Monte Corp., No. 12-4671 (N.D. Cal., filed September 6, 2012). The plaintiff cites and quotes a number of items published on the Internet purportedly showing that the Food and Drug Administration had been warning, at least since 2007, that chicken jerky products could pose a threat to dogs. “Notwithstanding these warnings,” he claims, “Del Monte continued to market the product as being wholesome and Del Monte placed no warnings concerning their products on their packaging to date.” Seeking to represent a nationwide class of product purchasers, the plaintiff alleges violations of California’s Unfair Competition Law and False Advertising Law and breach of express warranty and implied warranty of merchantability under the Magnuson-Moss Warranty Act. He…
A New York resident has filed a putative class action against The Dannon Co., alleging that because the company adds “filler materials, such as water, corn starch, and Milk Protein Concentrate” to products that it sells as yogurt, the products contain “banned additives” and, as a matter of federal law, are not yogurt, are misbranded and “cannot legally be sold in the United States.” Conroy v. The Dannon Co., Inc., No. 12-6901 (S.D.N.Y., filed September 11, 2012). A number of allegations in the complaint, including a history of yogurt-making, are carbon copies of a complaint filed in a California federal court in August 2012 against Cabot Creamery Cooperative, alleging that its Greek-style yogurt cannot be sold in the United States for similar reasons. Filed by the same law firm, that case is discussed elsewhere in this Update. Seeking to certify a nationwide class and New York subclass of product purchasers, the…
A California resident has filed a putative nationwide class action with astatewide subclass against a yogurt maker that sells “Greek-Style Yogurt” which allegedly contains ingredients that the Food and Drug Administration (FDA) has banned from use in yogurt. Smith v. Cabot Creamery Coop., Inc., No. 12-4591 (N.D. Cal., filed August 31, 2012). According to the named plaintiff, the company sells its product as “authentic Greek yogurt” thus allowing it to “charge a substantial price premium. . . . But the price premium for Cabot Greek is even larger, because Cabot Greek has no value whatsoever. Because the product is adulterated, it cannot legally be sold at any price. It is worthless.” The plaintiff contends that by using whey protein concentrate and milk protein concentrate as filler materials to thicken the product, the company does not incur the time and expense required to produce real Greek yogurt. Among other matters, the plaintiff…
New York and New Jersey residents have filed a putative nationwide class action with two statewide subclasses against General Mills, Inc. in a Minnesota federal court, alleging that the company has violated federal and state consumer fraud laws by marketing its Nature Valley snack bars as “100% Natural” when they contain high-fructose corn syrup and other non-natural ingredients. Chin v. General Mills, Inc., No. 12-2150 (D. Minn., filed August 31, 2012). The plaintiffs also allege that the products contain highly processed high-maltose corn syrup and the texturizer maltodextrin. They allege that they relied on the company’s marketing and advertising and purchased its products “believing them to be 100% natural,” but sustained “injury in fact and lost money as a result of General Mills having misrepresented the Nature Valley Products.” According to the complaint, General Mills incorporates the “100% Natural” claim into its primary branding of the Nature Valley products and…
The Ranchers-Cattlemen Action Legal Fund, United Stockgrowers Association (R-CALF USA) has filed a complaint for declaratory and injunctive relief in a Colorado federal court against the World Trade Organization (WTO) and U.S. Department of Agriculture Secretary Tom Vilsack, alleging that WTO’s determination that the U.S. Country of Origin Labeling Act (COOL) imposes discriminatory burdens on meat imported from Canada and Mexico is contrary to U.S. law and the Uruguay Round Agreements. Made in the USA Foundation, Inc. v. WTO, No. 12-2337 (D. Colo., filed September 1, 2012). Details about WTO’s ruling appear in Issue 419 of this Update. With some 5,400 members in 45 states, R-CALF USA apparently worked with Congress to pass the COOL legislation “that reserves the USA label for only cattle born, raised, and slaughtered in the U.S.A.” The complaint alleges that the plaintiffs will lose income as a result of WTO’s ruling and that its members “are…
Beef Products Inc. (BPI) has filed a defamation lawsuit against ABC News, Diane Sawyer and two former U.S. Department of Agriculture (USDA) employees, among others, claiming that they “knowingly and intentionally published nearly 200 false and disparaging statements regarding the company and its product, lean finely textured beef (LFTB).” Beef Prods. Inc. v. ABC, Inc., No. ___ (Cir. Ct., Union Cty., S. Dak., filed September 13, 2012). The company is seeking $1.2 billion in damages. At one time, LFTB was used in some 70 percent of ground beef; it is made from fatty scraps remaining after cattle carcasses are cut into steaks and roasts. Bits of lean meat are heated and separated from the fat in a centrifuge, then treated with ammonium hydroxide gas to rid the product of E. coli or other pathogens. BPA claims that it sold more than 3.7 billion pounds of LFTB between 2003 and 2012 and…
The manager of an Iowa egg farm that recalled 550 million eggs in a 2010 Salmonella outbreak that may have sickened 2,000 people has reportedly entered a guilty plea to a charge of conspiring to bribe a public official to allow the sale of eggs that failed to meet federal standards. United States v. Wasmund, No. 12-3041 (N.D. Iowa, plea entered September 12, 2012). According to Tony Wasmund’s attorney, the former manager, who oversaw some of the enterprises owned by Jack DeCoster, is cooperating with government authorities. The indictment charged Wasmund with authorizing the use of $300 in petty cash to be used by a colleague to bribe a U.S. Department of Agriculture inspector assigned to DeCoster’s Wright County egg farm. The bribe was purportedly intended to persuade the inspector to approve the sale of shell eggs that had been withheld for falling short of applicable USDA standards. Prosecutors apparently refused…
A federal court in San Francisco has issued a temporary injunction against the city of Richmond, California, to block enforcement of a law requiring campaign mailers to include information about “major funding from large out-of-city contributors.” Cmty. Coal. Against Beverage Taxes v. City of Richmond, No. 12-4545 (N.D. Cal., order entered September 7, 2012). The ordinance calls for committees that spend at least $2,500 on a local ballot proposal campaign to list their top five contributors on each mailer. According to news sources, the city adopted the ordinance in June in the midst of a heated political dispute over a November ballot measure that would, if approved by voters, require local businesses to pay a 1-cent-per-ounce tax on the sales of sugar-sweetened beverages. The Community Coalition Against Beverage Taxes, purportedly funded by the American Beverage Association, has apparently spent in excess of $350,000 to defeat the measure, outspending the proposal’s…
