Food & Beverage Litigation & Regulatory Update

Category: Issue 306

  • Importers of Melamine-Tainted Wheat Gluten to Plead Guilty

    According to a news source, a Las Vegas-based company and its co-owners have agreed to plead guilty to charges that they imported from China melamine-tainted wheat gluten used to make the pet food that purportedly sickened and killed thousands of cats and dogs in the United States and Canada in 2007. More details about the…

  • Crunchberries® Cereal Not Misleading, Says Federal Court

    A federal court in California has dismissed a putative class action alleging that the maker of Cap’n Crunch with Crunchberries® cereal misrepresented its product in violation of the state’s Business & Professions Code. Sugawara v. Pepsico, Inc., No. 08-01335 (E.D. Cal., decided May 21, 2009). Plaintiff alleged that the colorful “Crunchberries” depicted on the cereal…

  • $86 Million Verdict in Starbucks Tip-Sharing Class Action Overturned

    A California appeals court has determined that Starbucks did not violate state labor laws by allowing shift supervisors to share the tips left by customers in collective tip boxes and thus, overturned an $86 million award made to a class of current and former Starbucks’ baristas. Chau v. Starbucks Corp., No. D053491 (Cal. Ct. App., decided…

  • MDL Court Dismisses Aurora Dairy Litigation with Prejudice

    The multitdistrict litigation (MDL) court in Missouri before which nearly 20 putative class actions against Aurora Dairy Corp., an accredited organic certifying agent and several retailers had been consolidated for pre-trial proceedings, has dismissed the lawsuits with prejudice finding that federal organic food laws preempt the claims. In re Aurora Dairy Corp. Organic Milk Mktg. &…

  • FTC Approves Final Consent Order in Whole Foods Litigation

    The Federal Trade Commission (FTC) has announced its approval of a final consent order in its challenge to the merger of Whole Foods Market, Inc. and Wild Oats Markets, Inc. Under the agreement, Whole Foods will sell 32 of its supermarkets and give up unrestricted rights to the “Wild Oats” brand. When the agreement was announced…

  • Oregon Proposal to Require Nutritional Information Advances

    Oregon’s Senate has reportedly approved a bill (H.B. 2726) that would require restaurants with more than 15 locations nationwide to post information about calories, saturated fats and sodium for all menu items. According to a news source, some 69 percent of state residents polled have said that they want more nutritional information on restaurant menus.…

  • USDA Issues Proposed Rule Amending Substances for Organic Crops

    The U.S. Department of Agriculture (USDA) has issued a proposed rule that would amend its national list of allowed and prohibited substances for organic crop production and organic processing. The rule adds six substances, including the fortified cooking wines marsala and sherry for organic processing, and removes one substance from the list. Written comments must…

  • New FDA Bottled Water Rules Aim to Combat E. Coli

    The Food and Drug Administration (FDA) has issued a final rule that requires bottled water manufacturers to face stricter standards to prevent E. coli contamination . All manufacturers are currently required to test source water for germs each week, but starting December 1, 2009, if tests prove positive for E. coli, companies must explain in…