A California federal court has granted the plaintiffs’ request to dismiss their entire action with prejudice in a case accusing Gruma Corp. of labeling its Mission Restaurant Style tortilla chips as “all natural” despite containing genetically modified corn. Cox v. Gruma Corp., No. 12-6502 (N.D. Cal., order entered July 25, 2014). The plaintiffs’ stipulation to dismiss did not indicate whether the parties reached a settlement agreement. In the 2012 complaint, the plaintiffs alleged that Gruma violated state consumer protection laws like the Consumer Legal Remedies Act due to its alleged mislabeling; in July 2014, they debated Gruma’s motion to dismiss, in which the corporation argued that a reasonable customer would not have been misled by their labels, the complaint’s claims infringed the First Amendment, the plaintiffs failed to plead their fraud claims with the particularity required, and the court lacked jurisdiction to issue an injunction. Additional information on the case appears…
Tag Archives California
A federal court in California has dismissed for lack of standing a putative class action alleging that Pacific Foods of Oregon, Inc. misleads consumers by using the term “evaporated cane juice” (ECJ) on its food labels instead of sugar. Swearingen v. Pac. Foods of Ore., Inc., No. 13-4157 (N.D. Cal., order entered July 30, 2014). Plaintiffs Mary Swearingen and Robert Figy are named plaintiffs in a number of ECJ-related cases that have recently been stayed under the primary jurisdiction doctrine as the U.S. Food and Drug Administration considers its position on use of the term by food makers. Two such cases are summarized in Issue 529 of this Update. The court did not address this issue here, because it dismissed the case on pleading grounds. According to the court, the plaintiffs did not allege that they purchased the company’s products “in reliance on any alleged misrepresentations that evaporated cane juice is…
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…
A California federal court has dismissed fraud claims against R.C. Bigelow in a putative class action accusing the company of advertising that its tea “delivers healthful antioxidants” when the levels of antioxidants are too low to benefit the consumer. Victor v. R.C. Bigelow, No. 13-2976 (N.D. Cal., order entered July 18, 2014). The court allowed to proceed the plaintiff’s claim that Bigelow’s antioxidants assertion on its packaging violated California’s Unfair Competition Law (UCL) based on the “unlawful” prong, but it dismissed with prejudice his claims that Bigelow had violated the “fraud” prong of the UCL. Despite arguing the importance of the word “deliver,” the plaintiff failed to prove that the phrase “delivers healthy antioxidants” represented that the product contained a high enough level of antioxidants to provide health benefits to the tea drinker; as the court had previously allowed the plaintiff to amend his complaint, the claims relating to fraudulent…
A California federal court has approved a settlement in a class action alleging that Trader Joe’s labels items with synthetic ingredients as “All Natural.” Larsen v. Trader Joe’s Co., No. 11-5188 (N.D. Cal., order entered July 11, 2014). Trader Joe’s will pay $3.375 million to a settlement fund to compensate class members with a proof of purchase for all products and members without a proof of purchase for up to 10 items, with leftover funds to be distributed as products to class members at retail locations throughout the United States. Plaintiffs’ counsel will receive $950,000 of the fund. In 2011, plaintiffs accused Trader Joe’s of labeling several of its food products as “All Natural” or “100% Natural” despite containing one or more synthetic ingredients, which they alleged constituted fraud and unlawful business practices under federal and California law. The parties attended three mediation sessions supervised by a retired judge, but they…
John Wayne Enterprises (JWE) has filed a complaint in California federal court seeking declaratory judgments determining that its usage of the “Duke” trademark is not likely to cause confusion with the trademarks owned by Duke University, which has challenged several JWE trademark applications over the last decade. John Wayne Enterprises, LLC v. Duke Univ., No. 14-1020 (C.D. Cal., filed July 3, 2014). JWE intends to sell bourbon under the name Duke, a nickname John Wayne used since his childhood and which fans still use to affectionately refer to him. Duke University has repeatedly challenged JWE’s past trademark applications by filing notices of opposition and a petition for cancellation of JWE’s owned “Duke” trademarks, alleging that the marks suggest a false connection to the university, would likely confuse consumers and dilute the university’s trademarks. JWE seeks two declaratory judgments to determine that its “Duke” mark does not create any likelihood of…
A California federal court has dismissed on jurisdictional grounds Quest Nutrition LLC’s lawsuit against Louisiana State University Agricultural Center accusing the school of filing a patent for a sweetener using Quest’s confidential information. Quest Nutrition LLC v. Bd. of Supervisors of LSU Agric. & Mech. Coll., No. 14-2005 (C.D. Cal., order entered July 8, 2014). The court ruled that the majority of Quest’s claims—including those for unfair competition and breach of contract—arose under state law so the court lacked subject matter jurisdiction, and the court held that state courts and the U.S. Patent and Trademark Office have subject matter jurisdiction over Quest’s patent claims. Quest hired LSU Agricultural Center in 2013 to test a potentially new sweetener and bound the information by a confidentiality agreement. The company alleged that the university succeeded in identifying the formula for the sweetener and filed a patent application with the information that did not list Quest…
Briefing has been completed before the U.S. Supreme Court (SCOTUS) on a petition seeking review of the Ninth Circuit Court of Appeals ruling upholding California’s prohibition on the sale of food produced by force feeding birds to enlarge the liver beyond normal size. Association des Éleveur de Canards des d’Oies du Québec v. Harris, No. 13-1313 (U.S., distributed for Sept. 29, 2014, conference on July 16). Additional details about the Ninth Circuit’s ruling appear in Issue 497 of this Update. Joining the Canadian and New York foie gras producers that filed the certiorari petition are the attorneys general (AGs) of 13 states. Their amici curiae brief claims that the petition presents an issue of “exceptional importance to the preservation of state sovereignty,” namely, that the lower court’s decision “allows the states to engage in economic isolationism, set themselves against one another, and balkanize the nation, thus giving rise to trade wars…
A federal court in California has granted final approval to the nationwide class settlement of claims that the company which makes Muscle Milk® products deceived consumers by labeling them with the terms “Healthy, Sustained Energy” and “Healthy Fats.” Delacruz v. CytoSport, Inc., No. 11-3532 (N.D. Cal., order entered July 1, 2014). Additional information about the litigation and settlement appears in Issues 403, 436, 475, and 505 of this Update. Under the agreement, CytoSport will pay $1 million to eligible class members and cease using the allegedly deceptive terms on all newly printed packaging for certain products. The company may continue to use the designation “Healthy Fats” on the packaging for Muscle Milk® RTD and related products if they contain “fewer than 0.5 grams of saturated fat per serving, or CytoSport also includes the words ‘See nutrition information for saturated fat content’ in connection with the words ‘Healthy Fats.’” The court also awarded…
Poultry manufacturer Foster Farms has filed an amended complaint in its lawsuit against its Lloyd’s of London insurers, which had rejected its $14.2 million claim for economic losses resulting from a government-mandated shutdown of one of its facilities. Foster Poultry Farms Inc. v. Certain Underwriters at Lloyd’s, London, No. 14–953 (E.D. Cal., amended complaint filed July 3, 2014). Foster Farms had paid almost $600,000 for a yearlong product contamination policy to three insurers operating on the Lloyd’s of London insurance market, and the company later filed a claim to cover losses from the forced closure, including costs from the 1.3 million pounds of product it destroyed. The insurers rejected the claim because Foster Farms did not initiate the recall of its chicken, arguing instead that the policy covered economic losses associated with a voluntary recall from customers rather than losses from the destruction of products still in its warehouse. In a…
