Odwalla Asks Judge to Dismiss Mislabeling Class Action Lawsuit

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Odwalla Inc., a subsidiary of Coca-Cola Inc., urged a California federal judge last week to dismiss a proposed class action lawsuit accusing the company of misleading consumers about the sugar content of its Odwalla products by listing “evaporated cane juice” instead of “sugar” in the ingredients list. The company argued that use of “evaporated cane juice” on product labels is an issue the U.S. Food and Drug Administration has not yet adopted guidelines for.

In March, plaintiff Robin Reese filed the class action lawsuit after she purchased Odwalla products that listed evaporated cane juice on their labels. She claims that she relied on the ingredient list when she made her purchase, not knowing at the time that the products were allegedly “misbranded” in violation of California’s Sherman Law and the federal Food, Drug and Cosmetics Act (FDCA). She seeks to represent a nationwide class of consumer who purchased Odwalla products that listed evaporated cane juice as an ingredient under the belief that the products did not contain sugar.

In its motion to dismiss the Odwalla class action lawsuit, the company argued that Reese’s claims are invalid because they are based on a draft version of guidelines for evaporated cane juice that the FDA has not yet adopted. The company said that the claims can only be recognized if they are based on current law. Because the draft guidelines have not yet been adopted, the company cannot be held liable for violating them, they added.

Reese, on the other hand, argues that there is separate statutory and regulatory authority that shows the term “evaporated cane juice” is unlawful under the Sherman Law. Further, the FDA has “sent out a number of warning letters indicating that evaporated cane juice is a misleading term that misbrands a product,” her class action lawsuit says. “According to the FDA, the term ‘evaporated cane juice’ is not the common or usual name of any type of sweetener, including dried cane syrup.”

Odwalla argues that the FDA’s warning letters were not directed toward the issue of evaporated cane juice. Rather, the company argues, the term “evaporated cane juice” was mentioned in passing. Further, the FDA has indicated that its warning letters do “not necessarily represent the formal position of FDA.” The agency’s draft guidelines, which were written in 2009, have been criticized by numerous companies and businesses. The FDA has not taken any action to finalize its recommendations about evaporated cane juice.

In its motion to dismiss the Odwalla class action lawsuit, the company argued that it is improper to establish a nationwide class because the claims fall under California law. According to Odwalla: “California law is unique insofar as it purports to allow private plaintiffs to sue to enforce FDCA requirements under state law. While some states have enacted ‘mini-FDCA’ statutes of their own, legislators in those states have made a deliberate policy choice not to permit private enforcement or remedies.”

Reese is seeking more than $5 million in damages on behalf of the putative Class Members.

The plaintiff is represented by Pratt & Associates and by the Fleischman Law Firm.

The Odwalla Class Action Lawsuit is Reese v. Odwalla Inc., et al., Case No. 4:13-cv-00947, in the U.S. District Court for the Northern District of California.

UPDATE: On July 27, 2016, the Odwalla class action lawsuit has been revived after a two-year pause following the FDA’s recent administrative guidance concerning the use of the controversial term “evaporated cane juice” instead of “sugar” on ingredients list. 

UPDATE 2: On Aug. 10, 2016, Odwalla and the Coca-Cola Company asked a judge to dismiss a class action lawsuit accusing them of misleading consumers by listing “evaporated cane juice” as an ingredient instead of sugar.

UPDATE 3: On Sept. 16, 2016, Reese responded to the company’s motion for dismissal, reiterating her argument that the company shouldn’t use the term “evaporated cane juice” to describe what should be properly called “sugar.”

UPDATE 4: On Feb. 13, 2017, this Odwalla class action lawsuit will continue, following a federal judge’s denial of the company’s motion to dismiss.

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions