Category: Issue 509
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SEC Files Suit Against Diamond Foods over Financial Reporting
The U.S. Securities and Exchange Commission (SEC) has filed a complaint against Diamond Foods, Inc. and two former executives alleging that the company “materially misstated its financial results in multiple SEC Forms 10-Q, 10-K, and 8-K from at least February 2010 and ending in September 2011. In this timeframe, Diamond reported artificially inflated earnings per…
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FDA Will Not Say If GM Ingredients Are “Natural”
In a January 6, 2014, letter, the U.S. Food and Drug Administration (FDA) responded to three federal courts that stayed litigation involving whether food companies deceive consumers by labeling products with genetically modified (GM) ingredients as “natural,” stating that it would not make a determination on the issue to resolve a private litigation-related request. Cox v.…
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Twinings Prevails on Health-Based Allegations for Its Tea Products
A federal court in California has granted in part the motion for summary judgment filed by Twinings North America in a putative class action alleging that the company misbrands its tea products by stating that they are a “Natural Source of Antioxidants” and “a natural source of protective antioxidants.” Lanovaz v. Twinings N. Am., Inc.,…
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Bumble Bee Tuna Labeling Suit Trimmed
A federal court in California has granted in part the motion for summary judgment filed by Bumble Bee Foods in a putative class action alleging that certain labeling claims either deceived consumers or violate state and federal law. Ogden v. Bumble Bee Foods, LLC, No. 12 1828 (N.D. Cal., order entered January 2, 2014). Information about…
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Consumer-Fraud Litigation Against Chewing Gum Maker Dismissed
A federal court in California has dismissed with prejudice the second amended complaint in a putative class action alleging that Wrigley Sales Co.’s chewing gum and candy products are misbranded because the labels state that they are “sugar free.” Gustavson v. Wrigley Sales Co., No. 12-1861 (N.D. Cal., decided January 7, 2014). The court determined…
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Court Denies Class Cert. in Ben & Jerry’s “All Natural” Suit
A federal court in California has denied the plaintiff’s motion for class certification in a suit alleging that Ben & Jerry’s Homemade deceives consumers by using “all natural” on labels for ice cream, frozen yogurt and popsicle products that contain alkalized cocoa. Astiana v. Ben & Jerry’s Homemade, Inc., No. 10-4387 (N.D. Cal., decided January…
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Organic Labeling-Based Claims Dismissed as Preempted
Addressing a question of first impression, a California appeals court has dismissed a putative class action alleging that Herb Thyme Farms mislabeled its certified organically grown herbs as “USDA Organic” because the contents included a mix of organically and conventionally grown herbs. Quesada v. Herb Thyme Farms, Inc., No. B239602 (Cal. Ct. App., 2d Dist.,…
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Maine Governor Signs GM Labeling Bill
Maine Gov. Paul LePage (R) has signed a bill (L.D. 718) that will require labeling for foods containing genetically modified (GM) ingredients if at least five other states or a state with a population of at least 20 million passes similar legislation. Restaurants will be exempt from the disclosure requirements, and alcoholic beverages and medical…