Tag Archives California

According to a news source, the Center for Environmental Health has filed a lawsuit under California’s Safe Drinking Water and Toxic Enforcement Act (Prop. 65), alleging that Reed’s Ginger Products fails to warn consumers about the caramel-coloring chemical 4-methylimidazole (4-MEI) purportedly present in its soft drinks. Ctr. for Envtl. Health v. Reed’s, Inc., (Cal. Super. Ct., Alameda Cty., filing date unknown). In a June 26, 2014, 60-day notice, the center claimed that the company had violated the law since January 2012, stating, “No clear and reasonable warning is provided with these products regarding the carcinogenic hazards associated with 4-MEI exposure.” Prop. 65, a voter-approved law, requires warnings to consumers about exposures to substances known to the state to cause cancer or reproductive hazards and allows private individuals or organizations to enforce it. See Courthouse News Service, September 11, 2014.   Issue 537

Former Rancho Feeding Operations co-owner Robert Singleton has agreed to plead guilty to one count of aiding and abetting the distribution of condemned and diseased cattle in violation of the Federal Meat Inspection Act and will testify against the other owner of the now-defunct slaughterhouse operation and its employees. United States v. Singleton, No. 14-cr-441 (N.D. Cal., entered August 22, 2014). Additional details about the criminal allegations appear in Issue 535 of this Update. As part of the agreement, Singleton, who is 77, will cooperate with the U.S. attorney’s office, surrender any assets acquired as a result of the alleged illegal conduct, and permanently cease and desist from owning, operating or managing a meat-processing facility or slaughterhouse. The agreement contains admissions as to all of the conduct alleged in the information filed against Singleton, including instructing employees to swap the heads of healthy cattle for those of diseased cattle before…

Two residents of Berkeley, California, have filed a lawsuit in state court alleging that the proposed 1-cent-per-ounce soda tax, which will appear on the ballot in November, uses “politically charged” language and affects beverages beyond the targeted “high-calorie, sugary drinks.” Johnson v. Numainville, No. RG14786763 (Cal. Super. Ct., Alameda Cty., filed August 13, 2014). The complaint accuses the city council of failing to define the term “high calorie, sugary drink,” and suggests “sugar-sweetened beverage” instead. The plaintiffs also argue that the tax would apply to “any beverage intended for human consumption to which one or more added caloric sweeteners has been added and that contains at least 2 calories per fluid ounce,” despite that under U.S. Food and Drug Administration guidelines, a 12-ounce, 24 calorie drink would actually be considered low calorie. They request that the court order the city council to insert their suggested phrases for the allegedly biased…

The parties to a putative class action against Merisant Co. and Whole Earth Sweetener Co. have agreed on settlement terms, including changes to the Pure Via sweetener’s website and packaging, class certification and a $1.65- million payment to a settlement fund. Aguiar v. Merisant Co., No. 14-670 (C.D. Cal., motion filed August 18, 2014). The plaintiff had alleged that Merisant and Whole Earth label, advertise and market Pure Via products as natural, which she argued was false and deceptive. Under the terms of the proposed settlement, Merisant and Whole Earth agreed to add an asterisk to Pure Via packaging with a statement that directs consumers to the product website, which will explain the process of producing Pure Via from stevia to provide consumers with “significant information to make their own determination as to whether they deem Pure Via to be ‘natural.’” In addition, Merisant and Whole Earth have agreed to…

The parties to litigation alleging that Ghirardelli Chocolate Co. white chocolate products do not contain the requisite white chocolate ingredients to be labeled and promoted as such have agreed to settle the putative nationwide class action for $5.25 million and labeling changes. Miller v. Ghirardelli Chocolate Co., No. 12-4936 (N.D. Cal., motion filed August 20, 2014). Additional information about the case appears in Issues 465 and 479 of this Update. The settlement would also resolve claims to be alleged in a second lawsuit by an intervening named plaintiff regarding the use of “all natural” on product labels. Under the agreement, class members who purchased the company’s Classic White Chips would be able to receive $1.50 per purchase, while those purchasing 72 other “all natural” products would receive $0.75 per purchase. The claims of those with proofs of purchase would not be capped, while claimants without proof of purchase would receive a maximum…

Federal charges have been brought against two owners and two employees of Rancho Feeding Operations, a Petaluma, California-based livestock slaughterhouse, for distributing condemned and diseased cattle in violation of the Federal Meat Inspection Act. United States v. Amaral, No. 14-cr-437 (N.D. Cal., filed August 14, 2014); United States v. Singleton, No. 14-cr-441 (N.D. Cal., filed August 18, 2014). As a result of the investigation giving rise to the charges, Rancho voluntarily recalled some 8.7 million pounds of beef products in February 2014. According to the criminal indictment and information, Jesse Amaral and Robert Singleton, who owned the operation, allegedly directed Eugene Corda, Rancho’s primary yardperson, and Felix Cabrera, the facility’s foreperson, to either (i) remove “USDA Condemned” stamps from cattle carcasses and to process them for transport and distribution, or (ii) place the heads of healthy cows, swapped for diseased heads—from “cancer eye cows”—next to the carcasses of diseased animals while…

A California appeals court has determined that the state Labor Code requires employers to reimburse employees who “must use their personal cell phones for work-related calls”; so ruling, the court reversed a class-certification denial and ordered the lower court to reconsider the motion in light of this interpretation of the law. Cochran v. Schwan’s Home Serv., Inc., No. B247160 (Cal. Ct. App., decided August 12, 2014). The trial court denied certification due to lack of commonality and because a class action was not a superior method to litigate the claims. In its view, if an employee did not pay the cell phone charges because someone else did or the employee purchased a different cell phone plan that accommodated the calls, individual inquiries into the plans and payments would be necessary to determine liability. According to the appeals court, the issue in the case is whether an employer must always “reimburse…

A California federal court has dismissed several of the plaintiffs’ claims in a putative class action accusing Frito-Lay North America Inc. of mislabeling its Rold Gold pretzels as “low fat,” “fat free” or “all-natural” despite allegedly containing high sodium levels and unnatural ingredients. Figy v. Frito-Lay North America Inc., No. 13-3988 (N.D. Cal., order entered August 12, 2014). The court found that the plaintiffs had standing to sue on behalf of purchasers of several non-purchased products because Frito-Lay’s health claims were the same for each and the only difference was the shape of the pretzel products. The court then dismissed several of the plaintiffs’ claims. It found that it did not have subject matter jurisdiction to grant injunctive relief because Frito-Lay had triggered the plaintiffs’ obligation to prove jurisdiction by submitting declarations and extrinsic evidence of the plaintiffs’ lack of standing to seek an injunction, and the plaintiffs had then failed to…

A plaintiff has accused cereal company Organic Milling of mislabeling its Nutritious Living Hi-Lo brand cereals as “100% natural” despite allegedly containing synthetic and heavily processed ingredients and being produced with genetically modified (GM) crops. Mirto v. Organic Milling, No. BC553780 (Super. Ct. Cal., Los Angeles Cty., filed Aug. 5, 2014). The complaint alleges first that the use of GM crops in the cereal’s production precludes the company from using the phrase “100% natural” on its marketing materials, citing definitions from the World Health Organization and Environmental Protection Agency to argue that “GM crops are not ‘natural,’ and products made from these crops, including [Organic Milling’s products], are not ‘100% natural.’” The complaint further argues that Organic Milling’s use of canola oil in Hi-Lo cereal is not “100% natural” either because of the heavy processing required to produce the oil. The plaintiff also objects to the use of emulsifier soy…

A federal court in California has granted in part the motion to dismiss filed by Diamond Foods, Inc. in a putative class action alleging that the company misleads consumers by claiming that its Reduced Fat Sea Salt Chips are “40% reduced fat potato chips” and its Backyard Barbecue Chips are “All Natural,” as well as making false and deceptive statements in the company’s “promotional materials” and on its “website.” Hall v. Diamond Foods, Inc., No. 14-2148 (U.S. Dist. Ct., N.D. Cal., order entered July 31, 2014). An amended complaint, if any, must be filed by August 15, 2014, and the case management conference will be held on October 31. The court dismissed the reduced fat claims finding them insufficiently pleaded because it was unclear whether the plaintiff read only the statement on the front of the bag, in which case he “would lack standing to argue the statements on the…

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