Settlement Reached in Camel Cash Class Action Lawsuit

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The parties in a class action lawsuit accusing R.J. Reynolds Tobacco Co. of breaching a contract with consumers during its “Camel Cash Promotion” agreed to settle the lawsuit for more than $4.8 million.

Lead plaintiffs Amanda Sateriale and Jeffrey Feinman initiated the Camel Cash class action lawsuit alleging that the tobacco company misled consumers with a promotion.

The Camel Cash promotion took place from Oct. 1, 1991 through March 31, 2007. As a part of the promotion, R.J. Reynolds attached Camel Cash “C-Notes” to packages of Camel-brand filtered cigarettes. Consumers could redeem C-Notes for various items of merchandise listed in catalogs distributed by the R.J. Reynolds after they filled out an enrollment form and registered for the Camel Cash program.

In November of 2009, the plaintiffs alleged that the “Camel Cash Promotion” was cancelled without notice to consumers. The promotion entailed the use of “C-notes” in exchange for cigarette related merchandise, which became worthless when the promotion was cancelled. The plaintiffs accused R.J. Reynolds of violating California’s Consumer Legal Remedies Act and committing unfair business practices over the issue.

In response to the initial C-Notes class action lawsuit, R.J. Reynolds established that they had provided consumers notice that it was canceling the Camel Cash promotion. The plaintiffs then alleged that R.J. Reynolds violated contractual obligations because it never sent a Camel Cash catalog.

The class action was dismissed in 2011 when the district court judge ruled the program was not a contract, but an advertisement. The Ninth Circuit overturned the dismissal in the following year and the district court certified the Class in 2014. The district court also limited the Class to California residents.

Last week, R.J. Reynolds agreed to allow customers to use Camel Cash vouchers as a part of a proposed settlement agreement to resolve the class action lawsuit. The tobacco company also agreed to pay over $4.8 million in attorneys’ fees and costs.

According to court documents, the terms of the settlement include reactivating the Camel Cash program for six months. Up to 3,000 “C-Note” reward vouchers will be able to be redeemed by customers in possession of the notes or up to 1,125 notes if they indicate they had them in 2006. Plaintiffs will also receive incentive awards of $91,000.

“Reynolds has similarly concluded that this agreement is desirable in order to avoid the time, risk and expense of defending protracted litigation, and to resolve finally and completely the claims of plaintiffs and the settlement class,” says a motion from the plaintiffs urging the district court judge to approve the settlement agreement.

The Class is represented by Lionel Z. Glancy and Marc L. Godino of Glancy Binkow & Goldberg LLP and Jeffrey H. Squire, Patrick J. O’Donnell, David J. Stone and Lawrence P. Eagel of Bragar Wexler Eagel and Squire PC.

The Camel Cash Class Action Lawsuit is Amanda Sateriale, et al. v. R. J. Reynolds Tobacco Co., Case No. 2:09-cv-08394, in the U.S. District Court for the Central District of California.

UPDATE: On Feb. 9, 1016, Top Class Actions received new details regarding the Camel class action settlement. The final hearing date has been set for May 2, 2016. The objection deadline has been set for April 11, 2016. A new settlement website has been established for this case, www.CamelCashSettlement.com. And the potential award for Class Members has been determined to include non-tobacco merchandise.

UPDATE 2: On May 5, 2016, the Court granted final approval of the Camel Cash class action settlement.