A California resident has filed a putative nationwide class action against Trader Joe’s alleging that the company fails to disclose “the dangerously high” sodium content contained in its sunflower kernels and sunflower shells and then markets the products as a “good” or healthy snack. DiSimone v. Trader Joe’s Co., No. BC544924 (Cal. Super. Ct., Los Angeles Cty., filed May 6, 2014). Claiming that the company deceives consumers by listing a single serving “with Shells” as containing 690 milligrams (mg) of sodium or “29%” of the total daily value established by the U.S. Food and Drug Administration (FDA), the plaintiff contends that the seeds and shells, which are also placed in the mouth, actually contain more than 2,350 mg of sodium, an amount that far exceeds a large order of McDonald’s French fries at 350 mg of sodium. The plaintiff further asserts that the average consumer will eat more than one…
Category Archives State Courts
The University of California Davis, has reportedly filed a motion in California state court to dismiss the breach of contract suit that the California Strawberry Commission filed in October after it learned that the university may stop breeding and selling strawberry germplasm to farmers. UC Davis has developed and sold its strawberry germplasm at low royalty rates to the commission for several decades through a research program headed by two professors. According to the commission’s complaint, the professors announced their intention to resign in 2012 and take their research to a private company, raising the cost of royalties and limiting the sales to select strawberry growers, and as a result, the university notified the commission of its intention to shutter the program. In its complaint, the commission argued that its growers have directly funded the university program, so they are entitled to receive the new strawberry varieties that the professors…
The former wife of billionaire Chobani, Inc. CEO Hamdi Ulukaya has alleged that he “boasted on occasions that he had obtained the formula for the Chobani brand of yogurt from [competitor] Fage by bribing a former employee of Fage. He traveled to Europe and bribed this individual with 30,000 Euros.” Giray v. Ulukaya, No. 652838-2012 (N.Y. Sup. Ct., N.Y. Cty., memorandum filed April 3, 2014). She made the allegation in a memorandum of law filed in support of her motion for injunctive relief in litigation seeking a determination that she is a 53 percent shareholder in defendant Euphrates, Inc., the assets of which, she claims, were used to create Chobani. Plaintiff Ayse Giray, a New York physician, also claims that she financed the formation of Euphrates “and is merely claiming what was acknowledged by defendants in writing. The yogurt was based upon a recipe he stole from a competitor, Fage.…
A South Dakota court has determined that most of the claims filed by the makers of lean finely textured beef (LFTB) against ABC News, certain news correspondents, including Diane Sawyer, and former U.S. Department of Agriculture (USDA) employees may proceed. Beef Prods., Inc. v. Am. Broadcasting Cos., Inc., No. 12-292 (Union Cty. Cir. Ct., S.D., order entered March 28, 2014). Information about the lawsuit appears in Issue 453 of this Update. While the court found the plaintiffs’ claims for common law disparagement preempted by a state statute addressing the elements of a disparagement cause of action, available relief and statute of limitations, it limited its dismissal with prejudice to those alleged tortious statements expressly stating or implying that the product is not safe for human consumption. As to the defamation claims, the court found that the three plaintiffs were appropriate parties because the complaint sufficiently alleged that people who heard the…
According to New York Attorney General (AG) Eric Schneiderman, Phusion Projects, LLC, the company that makes Four Loko flavored malt beverages, has agreed to settle allegations by 20 attorneys general and the San Francisco city attorney that the company marketed and sold its products in violation of consumer protection and trade practice statutes. In re Investigation by Eric T. Schneiderman, N.Y. AG of Phusion Projects, LLC, No. AOD 14-075 (N.Y. AG, Bureau of Consumer Frauds & Protection, March 25, 2014). Without admitting any liability, the company has agreed not to (i) promote the misuse of alcohol or mixing flavored malt beverages with caffeinated products; (ii) manufacture, market, sell, or distribute any caffeinated alcohol beverages; (iii) provide materials to wholesalers, distributors or retailers promoting mixing flavored malt beverages with caffeinated products; (iv) sell, distribute or promote alcohol beverages to underage persons or hire underage persons to promote these products; (v) use college-related…
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 three-attorney, Pasadena, California-based law firm has filed numerous 60-day notice letters since March 2013 to companies that make alcoholic beverages, warning that they have failed to comply with a section of the Safe Drinking Water and Toxic Enforcement Act of 1986 (Prop. 65) by selling without the required warnings (i) “alcoholic beverages, when associated with alcohol abuse,” (ii) “ethyl alcohol in alcoholic beverages,” and (iii) “ethanol in alcoholic beverages.” The letters, filed on behalf of John Bonilla, Rafael Delgado, Jesse Garrett, and Rachel Padilla, assert that the companies have sold their products in the state without first indicating to consumers under “Title 27, CCR § 25603(e)(1): ‘WARNING: Drinking Distilled Spirits, Beer, Coolers, Wine and Other Alcoholic Beverages May Increase Cancer Risk, and, During Pregnancy, Can Cause Birth Defects.’” According to a news source, four individuals have filed Prop. 65 violation lawsuits in the Los Angeles County Superior Court, alleging…
A California appeals court has affirmed the dismissal of Proposition 65 (Prop. 65) lawsuits filed against fast-food restaurants by the vegetarian and animal-rights advocacy organization Physicians Committee for Responsible Medicine (PCRM), finding that the organization failed to conduct the requisite investigation into the warning signs posted in the defendants’ restaurants before certifying the merit of its 60-day notices to the companies, attorney general and local prosecuting entities. PCRM v. Applebee’s Int’l, Inc., No. B243908 (Cal. Ct. App., decided February 27, 2014). At issue were warnings about the chemical PhIP, known to the state to cause cancer, created during the chicken grilling process. Details about the lower court’s ruling appear in Issue 450 of this Update. Reciting the lengthy litigation history, which involved a number of amended complaints, the court emphasized the statements that the plaintiff’s counsel made during hearings on demurrers to the pleadings and deemed them binding admissions that…
Represented by animal rights organization Compassion over Killing, a California resident has filed a putative statewide class action against the Kroger Co., alleging that it misleads consumers by labeling its store-brand chicken products as “sourced from chickens raised ‘cage free in a humane environment,’” when the company’s “Simple Truth” chickens “are treated no differently than other mass-produced chickens on the market.” Ortega v. The Kroger Co., No. BC536034 (Cal. Super. Ct., Los Angeles Cty., filed February 11, 2014). Plaintiff Anna Ortega claims that she purchased the company’s chicken products, sourced from Perdue, relying on the package representations and paid a premium for them, averaging 41 percent more than comparable products. The complaint outlines the industry standards that Perdue and other chicken processors follow, detailing how they fail to prevent pain, disease and injury from birth to slaughter for a significant number of birds. According to the complaint, Kroger and Perdue…
A Texas Court of Appeals has affirmed a lower court’s grant of the defendants’ summary judgment motion in a legal malpractice action brought by a mushroom distributor, finding that he failed to prove lost profits as to his negligence claim and filed his breach of fiduciary duty claim too late under the applicable statute of limitations. Thomas v. Carnahan Thomas, LLP, No. 05-11-01615-CV (Tex. Ct. App., 5th Dist., decided February 5, 2014). The defendants represented mushroom distributor Stuart Thomas and provided legal advice as to one of the ongoing disputes he had with the company that produced the mushrooms he distributed. Among other matters, the attorneys told Thomas he could violate non-compete agreements in his distribution and employment contracts and also unsuccessfully represented him in handling his declaratory judgment action as to the non-compete agreements. The court agreed with the attorneys that Thomas had no evidence of lost profits because…
