Red Bull North America lost its motion to dismiss a $60-million wrongful death lawsuit involving a man who drank four cans of the energy drink every day for five years. Lemley v. Red Bull N. Am., No. 17-33 (S.D. Ga., order entered May 16, 2017). The suit alleges that reports dating back to 2000 show energy drinks cause fatal cardiovascular injuries to consumers. The court found the plaintiff had adequately pleaded the elements of fraud and the complaint stated a valid claim for relief. The U.S. Food and Drug Administration released adverse reports involving energy drinks in 2012—including reports of cardiovascular symptoms—but its investigation found no causal link between the drinks and the alleged injuries and deaths. In addition to damages for tort claims, the plaintiff is seeking $30 million in punitive damages. Issue 635
Tag Archives Georgia
A Georgia court has dismissed with prejudice a complaint against television personality Mehmet Oz accusing the physician of making false claims about the quality of olive oil in the United States, finding that Oz’s statements were protected under a state anti-SLAPP (strategic lawsuit against public participation) law protecting speech made in connection with an issue of public concern. N. Am. Olive Oil Assoc. v. Oz, No. 2016-283156, (Sup. Ct. Ga., Fulton Cty., order entered March 3, 2017.) The North American Olive Oil Association alleged that Oz and his guests made “false statements regarding the quality and purity” of olive oil sold in U.S. supermarkets. One of the guests was employed by olive oil producer California Olive Ranch, but the guest’s ties to the company were allegedly not disclosed on the show. The court said it had “grave concerns that the motivation for the present action falls directly within the purpose…
The North American Olive Oil Association (NAOOA) has filed a lawsuit against Mehmet Oz of "The Dr. Oz Show" alleging he falsely told his audience in a May 2016 episode that 80 percent of olive oil sold in supermarkets is fraudulent. N. Am. Olive Oil Ass'n v. Oz, No. 283156 (Ga. Super. Ct., Fulton Cty., filed November 29, 2016). The complaint asserts that Oz told viewers: "So how does it become fake, if it's just fresh olive juice? . . . Adulterated oil . . . takes some of the real oil and mixes it with fake olive oil substitute. To make the fake olive oil, you take an oil with no flavor or color like sunflower oil, add some coloring in there like chlorophyll to give it that rich green hue, then you mix that in with some of the real stuff, into extra virgin olive oil, and then,…
A Georgia federal court has reportedly ruled that four former executives of Peanut Corp. will not be forced to pay restitution to the victims of a Salmonella outbreak linked to nine deaths and 714 illnesses. The executives—Stewart Parnell, Michael Parnell, Samuel Lightsey and Daniel Kilgore—are each serving federal prison terms for knowingly shipping Salmonella-tainted peanut butter and faking related lab-test results. The court reportedly found that the loss estimates provided by the prosecutors were invalid because they included unrecoverable costs, including attorney’s fees. Further, the victims received more than $12 million from Peanut Corp.’s insurer, and the punitive factor of restitution would be reduced because requiring payment “would ultimately be for naught or close-to-naught,” as the executives received long prison sentences. See Associated Press, April 7, 2016. Issue 599
Experience Hendrix has filed a trademark infringement lawsuit against Tiger Paw Distributors, Private Label Distillery and Leon Hendrix, Jimi’s brother, for selling an alcohol product called “Purple Haze Liqueur.” Experience Hendrix v. Tiger Paw Distrib., No. 16-0642 (N.D. Ga., filed February 29, 2016). Experience Hendrix, established by Jimi’s father and now owned by Jimi’s sister and cousin, alleges that Leon and his company are selling Purple Haze Liqueur and promoting it with Jimi’s image, which Experience Hendrix owns. According to the complaint, Leon was previously enjoined from selling Jimi Hendrix Electric Vodka, sold in a purple bottle, after 2007 trademark litigation. The company argues that it hold copyright protection for several of Jimi’s songs, including “Purple Haze” and “Voodoo Child (Slight Return).” In addition, the U.S. Patent and Trademark Office previously refused to grant trademark rights to Tiger Paw for marks related to Jimi Hendrix because they suggested a false connection to…
One week after the sentencing of three Peanut Corp. of America (PCA) executives, two managers have been sentenced to prison for their roles in a Salmonella outbreak linked to nine deaths and hundreds of illnesses. Samuel Lightsey and Daniel Kilgore, former operations managers at PCA’s Blakely, Georgia, plant, were sentenced to three years and six years respectively. “By making sure that the individuals involved in the corporate fraud at PCA were held accountable, I am confident that the message to other executives is clear,” said U.S. Attorney Michael Moore. “Because we all know that it is people who make decisions about what goes on behind the corporate curtain, we’ll be looking to hold those individuals personally accountable when they steer their businesses down the path of fraud. Mr. Kilgore and Mr. Lightsey acknowledged their wrongdoing, and today their sentences reflect not only their acceptance of that responsibility, but also the…
Stewart Parnell, former chief executive of Peanut Corp. of America (PCA), has been sentenced to 28 years in prison following a conviction on federal conspiracy and fraud charges for his part in a Salmonella outbreak that killed nine people and sickened more than 700. U.S. v. Parnell, No. 13-cr-0012 (M.D. Ga., Albany Div., order entered September 21, 2015). “Americans should be able to trust that the food we buy for ourselves and our families is safe,” said Acting Associate Attorney General Stuart Delery in a September 21, 2015, press release. “The sentences handed down today to officials associated with the Peanut Corporation of America demonstrate the consequences for those whose criminal actions threaten that trust by introducing contaminated food into the marketplace. Our prosecution is just one more example of the forceful actions that the Department of Justice, with its agency partners, takes against any individual or company who compromises…
A Georgia federal court has upheld the convictions of Stewart Parnell, Michael Parnell and Mary Wilkerson, former Peanut Corp. of America (PCA) executives, after an investigation into the defendants’ claims of jury misconduct. United States v. Parnell, 13-12 (U.S. Dist. Ct., M.D. Ga., order entered May 28, 2015). The three were convicted on charges related to a 2008-2009 Salmonella outbreak that sickened hundreds of people nationwide and was linked to nine deaths. After a jury convicted them, the defendants argued that some jury members had conducted outside research, based on allegations made to them by Juror 34. The court rejected their argument, noting, “Throughout the sealed proceedings held on alleged juror misconduct, the court only uncovered one juror who could be termed biased: Juror 34.” Further, “the evidence against the Defendants was overwhelming,” the court said. The defendants’ attorney told media that it planned to appeal the ruling. Additional details about…
Stewart Parnell, former CEO of Peanut Corp. of America (PCA), and his brother Michael Parnell, former vice president of sales, have filed a joint motion for a new trial following their recent convictions on charges stemming from a Salmonella outbreak traced to their peanut processing facilities. United States v. Parnell, 13-12 (M.D. Ga., motion filed October 7). In a separate motion, former quality control manager Mary Wilkerson asked the court to acquit her of obstruction-of-justice charges because, she argued, the government failed to provide “a recording, time log, video, affidavit, state or any time of record of the alleged interview” in which Wilkerson was apparently asked “if she was aware of any positives [for Salmonella] in any of the FDA Inspector’s notes.” In their motion, the Parnells claimed that jury members conducted their own research and discovered that the Salmonella outbreak had been linked to nine deaths, a fact that had been excluded…
Following a seven-week trial in Albany, Georgia, a jury has reportedly convicted former Peanut Corp. of America owner Stewart Parnell, his brother Michael Parnell and quality assurance manager Mary Wilkerson on charges stemming from a 2008-2009 Salmonella outbreak that sickened hundreds of people nationwide and was linked to nine deaths. United States v. Parnell, No. 13-cr-12 (U.S. Dist. Ct., M.D. Ga., Albany Div., verdict entered September 19, 2014). Details about the mail and wire fraud, obstruction and conspiracy charges appear in Issue 472 of this Update. The conspiracy and obstruction charges each carry a potential sentence of 20 years in prison; sentencing will occur at a later date. Two former plant managers who were also charged entered guilty pleas that required them to cooperate with the prosecution. According to a news source, this could be the first time that corporate executives and facility workers have gone to trial in the…
