Chicken Producer to Settle Claims over “Raised Without Antibiotics” Ad Campaign
Multidistrict litigation (MDL) plaintiffs who challenged claims that Tyson products were made from “chickens raised without antibiotics” have sought approval of a settlement reached with the company. In re: Tyson Foods Inc., Chicken Raised Without Antibiotics Consumer Litigation, MDL No. 1982 (D. Md., motion filed January 12, 2010).
Under the terms of the settlement, Tyson will pay up to $5 million to three tiers of plaintiffs: those who can provide receipts (they can recover up to $50); those who can estimate how much they spent on the products, how often they purchased them and where the purchases were made (they can recover up to $10) and those who simply claim they purchased the product at least once and submit a claim for a $5 coupon instead of cash. Four named plaintiffs in the suits consolidated before the MDL court for pre-trial proceedings and four class members who were deposed will receive incentive awards not to exceed a total of $20,000 if the settlement is approved.
Attorney’s fees not to exceed $3 million will be paid separately by the company, and any unclaimed funds will be used for in-kind donations of Tyson products to food banks. According to a news source, a hearing for the court to review the settlement and the request to certify a settlement class was scheduled to be held January 15, 2010. A company spokesperson was quoted as saying, “Our Raised Without Antibiotics chicken initiative, which we started in 2007, was suspended in 2008 due to labeling challenges. While we believe our company acted appropriately, we also believe it makes sense for us to resolve this legal matter and move on.” See meatingplace.com, January 13, 2010.
Additional information about related litigation filed by Tyson competitors appears in issues 256, 257 and 258 of this Update. More details about the consumer litigation that led to the proposed settlement appear in issues 259 and 265 of this Update. A challenge that Tyson filed against the U.S. Department of Agriculture’s antibiotic labeling regulations appears in issue 264.
