Food & Beverage Litigation & Regulatory Update

Category: 7th Circuit

  • Insurers Must Defend Four Loko Maker in One of Five Lawsuits

    A federal court in Illinois has determined that insurers providing coverage to Phusion Projects, Inc., which makes Four Loko, an alcoholic beverage with large amounts of caffeine and other stimulants, do not have a duty to defend the company in lawsuits alleging injury from intoxication. Netherlands Ins. Co. v. Phusion Projects, Inc., No. 11-1253 (N.D. Ill.,…

  • Court Dismisses Insurer’s Suit Against Four Loko® Company

    A federal court in Illinois has granted the motion to dismiss filed by Phusion Projects, Inc., which sells Four Loko®, a caffeinated alcoholic beverage, in a case brought by one of the company’s insurers seeking a declaration that it owed no duty to defend or indemnify the beverage maker in third-party lawsuits claiming injury, death…

  • Insurers Need Not Defend Egg Producer Embroiled in Antitrust Litigation

    The Seventh Circuit Court of Appeals has determined that liability insurers of a major U.S. egg producer have no obligation to defend it in class action lawsuits alleging that the egg producer conspired with others to keep the price of eggs artificially high. Rose Acre Farms, Inc. v. Columbia Cas. Co., No. 11-1599 (7th Cir.,…

  • Seventh Circuit Dismisses Non-Natural Fiber Claims with Prejudice

    The Seventh Circuit Court of Appeals has dismissed with prejudice consumer protection claims filed against two companies that make snack bars with extra fiber, finding the claims preempted under federal law. Turek v. General Mills, Inc., No. 10-3267 (7th Cir., decided October 17, 2011). According to the court, “The disclaimers that the plaintiff wants added…

  • Purely Economic Injury Sufficient for Trans Fat Suit Against Quaker Oats to Continue

    A federal court in Illinois has determined that a plaintiff claiming that he would not have paid a premium for a product advertised as “heart healthy,” “0 grams trans fat” and “wholesome” had he known it actually contained trans fats, has standing to pursue his false advertising claims under state law. Askin v. The Quaker Oats Co.,…

  • Court Finds Honey Importers Improperly Served, Quashes Summonses

    A federal court in Illinois has determined that the government did not allege facts sufficient to pierce the corporate veil of related U.S. and foreign corporations and thus could not bring the foreign corporations before the court on charges of avoiding $80 million in customs duties on honey imported into the United States between 2002 and…

  • Brandeis University Sues Cookie and Biscuit Makers for Patent Infringement

    Brandeis University has filed suit against a number of cookie and biscuit manufacturers, including Keebler Co., Famous Amos Chocolate Chip and The Pillsbury Co., alleging that they have infringed patents that adjust the LDL/HDL ratio in human serum by balancing saturated and polyunsaturated dietary fatty acids. Brandeis Univ. v. East Side Ovens, Inc., No. 11-619 (W.D.…

  • Federal Court Rejects Claims That McDonald’s Food Packaging Harms the Environment

    A federal court in Illinois has reportedly dismissed on standing grounds the pro se claims of an individual plaintiff who alleged that the food packaging materials used by McDonald’s Corp., when discarded by consumers, pose a threat to the environment. Gencarelli v. McDonald’s Corp., No. 11-5573 (N.D. Ill., decided August 19, 2011). The plaintiff filed his…