A federal court in Florida has dismissed, without prejudice, a putative statewide class action filed against Amy’s Kitchen, alleging that the company misleads consumers by identifying the sugar in its products as “evaporated cane juice” (ECJ). Reilly v. Amy’s Kitchen, Inc., No. 13-21525 (S.D. Fla., order entered March 7, 2014). The court agreed with the company that, because the court had previously dismissed claims as to products the representative plaintiff had not purchased, the plaintiff could not, at the time she filed the complaint, meet the Class Action Fairness Act’s (CAFA’s) jurisdictional threshold of $5 million. Information about the court’s earlier ruling appears in Issue 507 of this Update. While jurisdictional facts are assessed at the time of removal, and post-removal events do not deprive courts of subject matter jurisdiction under CAFA, “if a claim of the required jurisdictional amount is made in good faith, the claim controls unless it…
Tag Archives evaporated cane juice
The U.S. Food and Drug Administration (FDA) has reopened the comment period on its draft industry guidance titled “Ingredients Declared as Evaporated Cane Juice” on food labels. First published for comments in October 2009, the draft guidance advises industry of “FDA’s view that the common or usual name for the solid or dried form of sugar cane syrup is ‘dried cane syrup,’ and that sweeteners derived from sugar cane syrup should not be declared on food labels as ‘evaporated cane juice’ because that term falsely suggests the sweeteners are juice,” and they are not “juice” as defined in federal regulations, 21 C.F.R. 120.1(a). FDA seeks “additional data and information to better understand the basic nature and characterizing properties of the ingredient, the methods of producing it, and the differences between this ingredient and other sweeteners.” Among the specific questions the agency has raised are (i) “How is ‘evaporated cane juice’…
A federal court in California has dismissed with prejudice the third amended complaint filed by named plaintiffs on behalf of a putative class of purchasers of Chobani Greek Yogurt products, alleging violations of state consumer protection laws because the products were mislabeled under federal law by listing evaporated cane juice (ECJ), instead of sugar, as an ingredient and stating that the yogurts contain only natural ingredients, when they actually contain fruit and vegetable juice—purportedly “highly processed unnatural substances”—as well as turmeric for color. Kane v. Chobani, Inc., No. 12-2425 (N.D. Cal., decided February 20, 2014). The court agreed with Chobani that the plaintiffs failed to sufficiently allege reliance or to plead fraud with sufficient particularity and thus lacked standing to pursue their claims under California’s Unfair Competition Law (UCL), False Advertising Law and Consumers Legal Remedies Act. Apparently annoyed that the plaintiffs had been given numerous opportunities to cure pleading…
A federal court in California has denied the motion to dismiss filed by guacamole maker Yucatan Foods, L.P. in a putative class action alleging violations of labeling laws based on the company’s use of “evaporated cane juice” instead of “sugar” on product labels. Swearingen v. Yucatan Foods, L.P., No. 13-3544 (N.D. Cal., order entered February 7, 2014). So ruling, the court rejected Yucatan’s arguments that (i) the “home state” exception of the Class Action Fairness Act should apply and divest the federal court of jurisdiction because a nationwide class of consumers cannot be certified given that California law cannot regulate conduct unconnected to the state—the court found that resolution of this issue was not appropriate at the pleadings stage; (ii) federal law preempts the plaintiffs’ state law-based claims—the court determined that the claims rise and fall on the defendant’s compliance with federal law, thus the requirements the plaintiffs seek to…
A putative statewide consumer-fraud class action has been filed in a Florida state court against Living Harvest Foods, Inc. over use of the term “evaporated cane juice” (ECJ) on food product labels rather than sugar. Miller v. Living Harvest Foods Inc., No. __ (Fla. Cir. Ct., Miami-Dade Cty., filed January 30, 2014). While the specific products at issue are not named, the plaintiff contends that the defendant “conceals the fact that its Products have added sugar by referring to the sugar as ECJ, a ‘healthy’ sounding name made up by the sugar industry years ago to sell sugar to ‘healthy’ food manufacturers to use in their consumer products. ECJ is not the common or usual name of any type of sweetener, or even any type of juice, and the use of such a name is false and misleading. Defendant uniformly lists ECJ as an ingredient on its Products, as well as…
A federal court in Florida has dismissed putative class claims in a consumer-fraud lawsuit to the extent they involve allegedly false “evaporated cane juice” (ECJ) labeling on Amy’s Kitchen food products that the named plaintiff did not purchase, but has otherwise allowed the remaining claims to proceed. Reilly v. Amy’s Kitchen, Inc., No. 13-21525 (S.D. Fla., order entered December 9, 2013). According to the court, in the Eleventh Circuit, plaintiffs have standing to assert claims based only on products they actually purchase thus rejecting the plaintiff’s argument that (i) she could bring claims involving products nearly identical to the purchased product and (ii) the issue was one of typicality and representation best resolved at the class certification stage. Because the plaintiff purchased just three Amy’s Kitchen products with ECJ listed as an ingredient on the label, she will be unable to pursue claims as to 57 other products. The court rejected…
Citing the settlement of similar class claims in a Florida court and plausibility issues, a federal court in California has dismissed with prejudice a putative class action alleging that companies misbrand products with an evaporated cane juice (ECJ) designation and sell products not meeting the standard of identity for yogurt and milk, including soymilk and almond milk. Ang v. WhiteWave Foods Co., No. 13-1953 (N.D. Cal., decided December 10, 2013). According to the court, the California plaintiffs, who filed their complaint after the class action was filed in Florida, were members of the class, knew about that settlement and had an opportunity to, but did not, object to it. Thus, the court found their ECJ and yogurt claims barred by res judicata. As for claims that consumers are confused by use of the terms “soymilk,” “almond milk,” and “coconut milk” in the names of Silk® products, an alleged violation of…
In a putative class action against Amy’s Kitchen, a federal court in California has dismissed with leave to amend claims that the company has mislabeled its products by listing “evaporated cane juice” (ECJ) or “organic evaporated cane juice” as an ingredient. Figy v. Amy’s Kitchen, Inc., No. 13-3816 (N.D. Cal., order entered November 25, 2013). The company argued that the plaintiff “failed to allege that he relied on the products’ ingredient labeling” and thus lacked standing under the state’s Unfair Competition Law (UCL). According to the plaintiff, “reliance on a label misrepresentation is not a necessary element of a claim under the unlawful prong of the UCL.” Interpreting and applying In re Tobacco II Cases, 46 Cal. 4th 298 (2009), and Kwikset Corp. v. Superior Court, 51 Cal. 4th 310 (2011), the court held, “because the statutes plaintiff relies on prohibit specific types of misrepresentation on food labels—the listing of…
A California resident has filed a putative nationwide class action against Pacific Foods of Oregon, Inc., alleging that the company falsely labels its Hemp NonDairy Beverage® products as “all natural” despite the presence of processed and artificial ingredients and misbrands them by listing as an ingredient “evaporated cane juice.” Perera v. Pac. Foods of Or., Inc., No. 13-1788 (C.D. Cal., filed November 13, 2013). Plaintiff Sadisha Perera claims that she purchased one specific beverage relying on the prominent “all natural” labeling, but seeks to represent class members who purchased a number of other hemp non-dairy products that are purportedly substantially similar. According to the plaintiff, she would not have purchased the products if she had known that ingredients, such as calcium phosphate, disodium phosphate, xanthan gum, and certain vitamins, listed on the product in smaller print, were non-natural. She claims that she did not get the benefit of the bargain…
A California resident has filed a putative nationwide class action against Lifeway Foods, Inc., alleging that many of its kefir, lassi and frozen yogurt products are misbranded under federal law and the state’s Sherman Law because they list as ingredients “Evaporated Cane Juice” or “Organic Cane Juice,” terms that purportedly render the products illegal. Figy v. Lifeway Foods, Inc., No. 13-4828 (N.D. Cal., San Francisco Div., filed October 17, 2013). The plaintiff avers that he and the class purchased these illegal products at a premium price and have sustained economic damages under the unlawful business acts and practices law. According to the complaint, the “unlawful sale of an illegal product is the only element necessary for the UCL claim. No reliance is necessary.” The plaintiff requests restitution, injunctive relief, corrective action, attorney’s fees, costs, and interest.
