Deceptive Ad Claims Settled with Muscle Milk® Maker

The company that makes the Muscle Milk® line of nutrition products has agreed to settle putative class claims that it misrepresented the products’ nutritional value. Delacruz v. CytoSport, Inc., No. 11-3532 (N.D. Cal., motion to approve settlement filed March 7, 2013). Details about the complaint appear in Issue 403 of this Update. A court order leaving just one issue in the case—an allegation that labeling claims of “healthy fats” in a Muscle Milk® product could deceive because a reasonable consumer would expect the product to contain unsaturated and not saturated fats—is summarized in Issue 436 of this Update.

Under the proposed agreement, the company would pay the equivalent of $5.275 million for awards to the named plaintiff and class members, a cy pres award, injunctive relief, class notice and settlement administration costs, attorney’s fees and expenses, and products in kind. Claimants with proof of purchase would receive up to $30 each; other class members would be able to submit claims for up to $10. A maximum of $85,000 would be paid to the American Heart Association, and plaintiff’s counsel would be paid 23.7 percent of the total settlement fund value as well as costs of up to $87,500. If the court approves the proposal, any residual funds “will be distributed in the form of distribution of CytoSport’s products to the American Cancer Society, and to elderly persons and hospital patients.”