Kashi and Bear Naked Reach “All Natural” Class Action Settlements

Kashi Co. and its unit Bear Naked Inc. have both settled class actions stemming from their claims that their products are “All Natural” and include “Nothing Artificial.” Astiana v. Kashi Co., No. 11-1967 (S.D. Cal., settlement filed May 2, 2014). Thurston v. Bear Naked Inc., No. 11-2890 (S.D. Cal., settlement filed May 2, 2014). The plaintiffs alleged in California federal court that the companies, both part of Kellogg Co., advertised their products as all natural and charged higher prices based on that quality while inserting synthetic material into their foods. A judge certified both  classes in July 2013 after ruling that the plaintiffs had proved the artificiality of some of the “natural” ingredients, including hexane-processed soy ingredients and pyridoxine hydrochloride. Kashi has agreed to pay $5 million to California consumers who purchased its products and to alter its labeling and advertising to remove the claims at issue; in a similar settlement, Bear Naked will pay $325,000. Kashi denies any wrongdoing, but reportedly cites the expense and burden of litigation as a driving force for the settlement. Details on the class action certification appear in Issue 492 of this Update. See Law360, May 5, 2014.

Issue 523