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Vegan cookie company, Lenny & Larry's Inc., has reached
a $5 million settlement with a proposed class of consumers who
accused the company of misstating the nutritional value of its
"Complete Cookie." The proposed class action plaintiffs
alleged that the Complete Cookie's label violated the federal
Food, Drug and Cosmetic Act and a variety of state consumer
protection laws by (i) understating the calorie, carbohydrate, fat
and sugar content; (ii) overstating the protein content; and (iii)
miscalculating the percent daily protein share.
Under the terms of the settlement, Lenny & Larry's will
put $5 million in a common fund, with $1.85 million towards cash
payments – with portions of this cash payment going toward
administrative costs, the plaintiff's fees and costs, and named
plaintiff's incentive awards – and $3.15 million towards
free product. Any unclaimed cash will go toward free cookie
distribution instead, and if the initial free cookie distribution
doesn't exhaust the entirety of the $3.15 million product
inventory, the remainder will be sent to retail outlets to be given
to consumers for free. Additionally, Lenny & Larry's retain
the right to terminate the settlement if more than 300 settlement
class members opt-out of the settlement.
Takeaway:
As we have previously written, advertisers of food products
should continue to pay special attention to the labelling of
ingredients in light of the continued scrutiny by the class-action
bar.
This article is presented for informational purposes only
and is not intended to constitute legal advice.
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