Category Archives Litigation

Warner Brothers, the film studio that owns the rights to the Willy Wonka movies, has asked the Trademark Trial and Appeal Board of the U.S. Patent and Trademark Office to stop a Georgia craft brewer’s use of “Golden Ticket” as the name for a chocolate stout beer, claiming that the name could lead some to believe the filmmaker is promoting underage drinking. Warner Bros. Entm’t Inc. v. S. Sky Brewing Co., No. 91233169 (T.T.A.B., filed March 1, 2017). In the Willy Wonka movies, children who found golden tickets tucked inside chocolate­-bar packaging won a tour of the chocolate factory and a chance to win a grand prize. Warner Brothers claims the name “Golden Ticket” is an “intent to capitalize” on the popularity of the films, alleging that Southern Sky’s beer is advertised as “reminiscent of a chocolate hazelnut candy bar and as creamy as chocolate milk,” reinforcing the “mental association”…

A Georgia court has dismissed with prejudice a complaint against television personality Mehmet Oz accusing the physician of making false claims about the quality of olive oil in the United States, finding that Oz’s statements were protected under a state anti-SLAPP (strategic lawsuit against public participation) law protecting speech made in connection with an issue of public concern. N. Am. Olive Oil Assoc. v. Oz, No. 2016­-283156, (Sup. Ct. Ga., Fulton Cty., order entered March 3, 2017.) The North American Olive Oil Association alleged that Oz and his guests made “false statements regarding the quality and purity” of olive oil sold in U.S. supermarkets. One of the guests was employed by olive oil producer California Olive Ranch, but the guest’s ties to the company were allegedly not disclosed on the show. The court said it had “grave concerns that the motivation for the present action falls directly within the purpose…

A Connecticut plaintiff filed a projected class action against Subway after DNA testing of the chain’s chicken sandwiches allegedly showed the meat was only 42 to 53 percent chicken and the remainder was processed soy. Moskowitz v. Doctor’s Associates Inc., No. 17­-0387 (D. Conn., filed March 1, 2017). Researchers affiliated with the Canadian Broadcasting Company’s “Marketplace” news show apparently found that the meat used in Subway’s oven-­roasted chicken items was only 53.6 percent chicken, while the meat used in the sweet onion teriyaki items was only 42.8 percent chicken. The plaintiff claims that Subway is “disseminating false and misleading information via advertising, marketing, its website, and menu intended to trick unsuspecting customers, into believing they are purchasing chicken for their money, rather than Sandwiches and Chicken Strips containing a multitude of ingredients.” The complaint alleges violations of the federal Magnuson-­Moss Warranty Act, the Connecticut Unfair Trade Practices Act, breach of…

A consumer has filed a putative class action against the manufacturers of Rachael Ray’s dog foods, alleging that the products are labeled as “natural” despite containing artificial or synthetic chemicals. Grimm v. APN, Inc., No. 17­-0356 (C.D. Cal., filed February 28, 2017). The plaintiff claims that she only bought the dog foods, sold under the Nutrish , Dish, Zero Grain and Just 6 labels, because they were labeled as natural and free of preservatives and would have purchased other products had she known the foods contained “artificial preservatives and unnatural ingredients.” The plaintiff alleges the defendant manufacturers “capitalized” on consumer preferences for natural food products. The product labels indicate that the dog foods contain L-­ascorbyl­-2­ polyphosphate, menadione sodium bisulphate complex, thiamine mononitrate, and caramel color. For alleged negligent representation, violations of California’s Legal Remedies Act, False Advertising Law and Unfair Competition Law, breach of warranties and quasi­-contract, the plaintiff is…

A consumer has filed a putative class action against Ferrara Candy Co. claiming that its packaging of Jujyfruits and other candies misleads consumers by misrepresenting the amount of candy contained in each box. Iglesias v. Ferrara Candy Co., No. 17-­0849 (N.D. Cal., filed February 21, 2017). The plaintiff claims that Ferrara “shortchanges consumers” by under­filling its opaque candy boxes. In movie theaters, where boxed candies are sold, the boxes are kept behind glass showcases, the complaint asserts, and consumers have no opportunity to examine net weight, serving disclosures or other labeling until after paying for the candy. Moreover, the plaintiff claims that consumers’ purchasing decisions are heavily dependent on product packaging and that “consumers are apt to choose the larger box because they think it’s a better value.” The action includes other candy lines manufactured by Ferrara, including Lemonhead , RedHots , Chuckles , Brach’s and Atomic Fireball products. For…

A New York federal court has dismissed a putative class action against Chipotle Mexican Grill Inc. alleging the burrito chain violated the Securities and Exchange Act of 1934 by making material misrepresentations about the company’s response to food-borne illnesses linked to its stores. Ong v. Chipotle Mexican Grill, Inc., No. 16­0141 (S.D.N.Y., order entered March 8, 2017). The court has granted the plaintiffs, led by Metzler Investment GmbH and Construction Laborers Pension Trust of Greater St. Louis, leave to amend. Chipotle’s stock price dropped in 2015 after outbreaks of foodborne illnesses, including norovirus, E. coli and Salmonella, were linked to its stores. As a result, Chipotle profits declined by 95 percent in 2016 as compared to the year before. The plaintiffs alleged that Chipotle and three of its executives misled shareholders and the public in the statements and reports it released about the outbreaks, although Chipotle predicted poor performance in…

The widow of a Vermont man who died after eating raw­milk cheese allegedly contaminated with Listeria monocytogenes has filed suit against the manufacturer of the cheese, Vulto Creamery. Friedman v. Vulto Creamery LLC, No. 17­-0283 (N.D.N.Y., filed March 10, 2017). Vulto issued a recall of its Ouleout, Miranda, Heinennellie and Willowemoc raw-­milk cheeses in March 2017 after the U.S. Food and Drug Administration identified Ouleout as the source of a Listeria outbreak that began in September 2016. The complaint asserts that multiple people became ill or died after eating Vulto’s Ouleout. For alleged strict liability, breach of warranty, negligence and negligence per se, the plaintiff is seeking damages and attorney’s fees.   Issue 627

Three environmental and conservation advocacy groups have moved to intervene in a lawsuit filed by a group of seafood processing, distribution and retail companies to block implementation of the Seafood Import Monitoring Program. Alfa Int’l Seafood, Inc. v. Sullivan, No. 17-­0031 (D.D.C., motion filed March 7, 2017). Natural Resources Defense Council, Oceana and the Center for Biological Diversity are asking to defend the oversight program, known as the Seafood Traceability Rule, which gives the National Oceanic and Atmospheric Administration power over stringent reporting and recordkeeping of fish catches, vessel and species identification, names of buyers and other chain-­of-­custody information. The National Marine Fisheries Service published the rule in December 2016 to combat U.S. imports of seafood alleged to be the product of illegal, unreported and unregulated fishing, along with fraudulent practices such as mislabeling of species.   Issue 627

A California-based seafood company has reportedly been sentenced in federal court for knowingly selling mislabeled frozen fish fillets. United States v. Seafood Solutions, Inc., No. 11-297 (C.D. Cal., sentencing February 6, 2012). Seafood Solutions, Inc. agreed to plead guilty to the charge in July 2011, as part of a federal investigation into companies that had been selling Asian catfish imports under other labels to avoid anti-dumping duties. Under the terms of the agreement, the company was fined $700,000 and will pay an additional $300,000 to the National Fish and Wildlife Foundation. Two California men also pleaded guilty in connection with the scam and are apparently scheduled for sentencing on February 12, 2012. See Law360, February 7, 2012.

John Fox, former owner of wine shop Premier Cru, has reportedly been sentenced to 6.5 years in prison after pleading guilty to wire fraud and defrauding investors out of at least $45 million. As part of the scheme, Fox sold wine to customers around the world, embezzled the money, then used newer purchasers’ money to buy and ship the wine promised to earlier purchasers, an arrangement one prosecutor called a “wine Ponzi scheme.” Fox reportedly spent the money on luxury cars, personal credit cards and gifts for women he met online. He began serving his sentence immediately. See Los Angeles Times, December 15, 2016.   Issue 626

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