The U.S. Department of Labor and New York Attorney General Eric Schneiderman have announced that four Papa John’s Pizza franchisees have agreed to pay $469,355 for labor violations. Back wages and damages will be distributed to 250 affected workers, to whom the franchisees failed to pay minimum and overtime wages and failed to provide one week’s worth of adequate uniforms. “Once again, we’ve found Papa John’s franchises in New York that are ripping off their workers and violating critical state and federal laws,” Schneiderman said. “Fast food chains across the state should be on notice: we will not stop until your workers are treated with respect and paid lawful wages. Once again, I call on Papa John’s and other fast food companies to step up and stop the widespread lawlessness plaguing your businesses and harming the workers who make and deliver your food.” See New York State Office of the…
Category Archives Litigation
Two consumers have reportedly filed a putative class action against Welch Foods, Inc. and Promotion in Motion Cos. alleging their Welch’s fruit snacks products are deceptively advertised as providing vitamins and nutrients despite being “no more healthful than candy.” Atik v. Welch Foods, Inc., No. 15-5405 (E.D.N.Y., filed September 18, 2015). Welch’s packaging advertises its products as produced from “real fruit” despite using only fruit concentrate, the complaint reportedly alleges, and the packaging implies the vitamins in the fruit snacks are derived from the fruit rather than introduced during the production process. This infusion allegedly runs afoul of the U.S. Food and Drug Administration’s “jelly bean rule,” which targets products that would not otherwise meet the agency’s standards for healthful foods without the addition of vitamins during the production process. See FoodNavigator-USA, September 23, 2015. Issue 580
Proximo Spirits, Inc. has settled a class action alleging it deceptively marketed Tincup Whiskey® as manufactured entirely in Colorado despite part of its production occurring in Indiana. Aliano v. Proximo Spirits, Inc., No. 14-17429 (Ill. Cir. Ct., Cook Cty., preliminary approval entered September 16, 2015). Proximo has agreed to establish a $425,000 settlement fund to pay class members with proofs of purchase $4.50 and $2.25 to those without, per bottle purchased. In addition, class members who purchased Tincup for on-premises consumption can receive $0.75 up to a maximum of five drinks. Future Tincup labels will no longer feature claims that the product was manufactured entirely in Colorado and instead must identify the state or states where Proximo manufactured the product. Issue 580
Sazerac Co., maker of Fireball Cinnamon Whisky®, and Stout Brewing Co. have filed a joint stipulation of dismissal with prejudice in a lawsuit alleging that Stout infringed Sazerac’s trademark by selling a malt specialty beer called “Fire Flask.” Sazerac Co. Inc. v. Stout Brewing Co. LLC, No. 15-0107 (W.D. Ky., stipulation filed September 24, 2015). Stout has reportedly agreed to stop selling its existing Fire Flask products and will redesign the label for future production. Each party will pay its own attorney’s fees and costs. Additional details on the August 2015 complaint appear in Issue 576 of this Update. See Law360, September 24, 2015. Issue 580
A Florida federal court has dismissed five putative class action claims, allowing one to continue, against Fifth Generation Inc. in a lawsuit alleging Tito’s® Handmade Vodka is not actually made by hand in “an old fashioned pot still” and thus is deceptively marketed. Pye v. Fifth Generation Inc., No. 14-0493 (N.D. Fla., order entered September 23, 2015). The court cited its May 2015 decision in Salters v. Beam addressing similar claims against Maker’s Mark®, finding that “[m]uch of the analysis here repeats what was said there.” Details about that decision appear in Issue 564 of this Update. The plaintiffs alleged that “handmade” means “made from scratch” or “in small units,” with human involvement in the process. The court disagreed, finding, “No reasonable person would understand ‘handmade’ in this context to mean literally made by hand. No reasonable person would understand ‘handmade’ in this context to mean substantial equipment was not…
A California federal court has denied class certification in a lawsuit consolidated from four separate actions alleging that Hain Celestial Seasonings Teas were produced from ingredients sprayed with pesticides and contained pesticide residue, thus allegedly precluding Hain from labeling its teas as “natural.” In re Hain Celestial Seasonings Prods. Consumer Litig., No. 13-1757 (C.D. Cal., order entered September 23, 2015). In its answer to the complaint, Hain argued the plaintiffs conflated the definitions of “natural” and “organic” in their arguments, noting that under the plaintiffs’ standards, even an apple picked directly from a tree would not be “natural” had pesticides been applied during its growth. The court first chastised the plaintiffs for erroneous references and poorly timed supplemental filings. “Despite 18 months passing between the filing of this lawsuit and the filing of the Certification Motion, Plaintiffs effectively left the Court to drink from a fire hose, perhaps filled with…
A California federal court has denied the U.S. Department of Agriculture’s (USDA’s) motion to dismiss a lawsuit brought by environmental organizations challenging USDA’s issuance of a guidance document about the use of pesticides in compost without first having solicited public comment. Ctr. for Envt’l Health v. Vilsack, No. 15-1690 (N.D. Cal., order entered September 29). The Center for Food Safety (CFS), Center for Environmental Health and Beyond Pesticides challenged USDA’s actions on Administrative Procedures Act (APA) grounds, arguing the agency violated federal procedures by not allowing a formal rulemaking and public comment period about a guidance document permitting the use of compost with pesticides in the production of organic food. The court found that the organizations had sufficiently stated their claim under the APA and had standing to sue. “The agency’s unilateral action to allow compost contaminated with pesticides in organic production was contrary to federal rulemaking requirements as well…
One week after the sentencing of three Peanut Corp. of America (PCA) executives, two managers have been sentenced to prison for their roles in a Salmonella outbreak linked to nine deaths and hundreds of illnesses. Samuel Lightsey and Daniel Kilgore, former operations managers at PCA’s Blakely, Georgia, plant, were sentenced to three years and six years respectively. “By making sure that the individuals involved in the corporate fraud at PCA were held accountable, I am confident that the message to other executives is clear,” said U.S. Attorney Michael Moore. “Because we all know that it is people who make decisions about what goes on behind the corporate curtain, we’ll be looking to hold those individuals personally accountable when they steer their businesses down the path of fraud. Mr. Kilgore and Mr. Lightsey acknowledged their wrongdoing, and today their sentences reflect not only their acceptance of that responsibility, but also the…
People for the Ethical Treatment of Animals Inc. (PETA) has filed a lawsuit against Whole Foods Market claiming the grocery chain’s “5-Step® Animal Welfare Rating System” is a “sham” because Whole Foods fails to enforce the program against its chicken, turkey, pork and beef suppliers. PETA v. Whole Foods Mkt., Inc., No. 15-4301 (N.D. Cal., filed September 21, 2015). The complaint asserts that “the entire audit process for Whole Foods’ animal welfare standards is a sham because it occurs infrequently and violations of the standards do not cause loss of certification. Indeed, a supplier can be out of compliance for multiple years without losing its certification.” Further, the certification standards “barely exceed common industry practices, if at all.” The complaint coincides with an investigative report from PETA that purportedly exposes several program violations at a Pennsylvania pig farm that supplies to Whole Foods. “‘Humane meat’ is a myth that dupes…
Gosling Brothers Ltd. has filed a complaint against Pernod Ricard USA, maker of Malibu Island Spiced Rum®, alleging that a recipe on the Malibu website violates Gosling’s “Dark ‘N Stormy” trademarks. Gosling Bros. Ltd. v. Pernod Ricard USA, No. 15-13360 (D. Mass., filed September 15, 2015). Gosling holds five trademarks for “Dark ‘N Stormy” in the categories of wine and spirits, bar services and clothing to protect a cocktail recipe and a premixed cocktail drink composed of Gosling’s Black Seal Rum and ginger beer. The Malibu website, the complaint alleges, offers a recipe for a “Dark N’ Stormy” drink composed of Malibu Island Spiced Rum®, ginger beer, bitters and a lime wedge along with a video instructing how to make the cocktail. The complaint further alleges that a similar recipe for a “Black Stormy” cocktail uses similar ingredients but replaces the Malibu Island Spiced Rum® with Malibu Black Rum®. Gosling…
