Complaint Filed Against Walnut Seller for Omega-3 Health Claims

A New York resident has filed a putative class action against Diamond Foods, Inc. in a California federal court alleging that the company labeled its walnuts with false claims that “consumption of the omega-3 fatty acids in walnuts promotes heart health and lowers the risk of coronary heart disease.” Zeisel v. Diamond Foods, Inc., No. 10-1192 (N.D. Cal., filed March 22, 2010). The plaintiff seeks to certify a nationwide class of consumers who purchased the company’s shelled walnut products since March 19, 2006, and claims that he relied on the product labels to make his purchasing decision.

The complaint alleges unlawful, unfair and fraudulent business practices; false advertising; violation of California’s Consumer Legal Remedies Act; and unjust enrichment. The plaintiff seeks an order certifying the class, restitution of either the amounts paid to purchase the products or the company’s profits from the transactions, an order enjoining further misleading advertisements, attorney’s fees, costs, and interest. The complaint alleges that the Food and Drug Administration rejected health claims for walnuts in 2004 and cites the letter the agency sent to the company in February 2010 warning that its products were misbranded. The plaintiff is represented by law firms different from the one that was soliciting plaintiffs with claims against Diamond; more details about that initiative appear in issue 341 of this Update.