Quaker Oats Class-Action Settlement Finalized, PHOs to Be Removed

In consolidated actions pending since 2010, a federal court in California has
entered a final order approving a class-action settlement that will require
Quaker Oats Co. to remove partially hydrogenated oils (PHOs) from some of
its oatmeal products and cease making the statement “contains a dietarily
insignificant amount of trans fat” on any product label where the product still
contains more than 0.2 grams of artificial trans fat per serving. In re Quaker
Oats Labeling Litig., No. 10-0502 (U.S. Dist. Ct., N.D. Cal., San Jose Div., order
entered July 29, 2014). Details about a court ruling trimming the plaintiffs’
claims that the company falsely advertised products with PHOs as healthy
appear in Issue 433 of this Update.

According to the court’s order awarding $760,000 to class counsel in attorney’s
fees and costs, the suit and settlement conferred “a significant benefit
. . . on the general public” given the product reformulations, estimated at a
cost to the company of some $1.4 million. The company has also reportedly
agreed not to introduce PHOs into any products at issue in the litigation or
into any Quaker Chewy Bars and Instant Quaker Oatmeal products, which do
not currently contain PHOs, for 10 years. Quaker Oats continues to deny the
plaintiffs’ allegations. See Law360, July 30, 2014.

Issue 532