Chobani Class Action Heads to the Ninth Circuit Appeals Court

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After their Chobani class action lawsuit was dismissed, three plaintiffs took their claim to the Ninth Circuit to attempt to revive allegations that the yogurt-maker deceives consumers by mislabeling ingredients.

Plaintiffs Katie Kane, Arianna Rosales and Darla Booth are appealing U.S. District Judge Lucy Koh’s decision to dismiss their proposed class action suit, declaring the plaintiffs failed to sufficiently alleged that they relied of the yogurt manufacturer’s mislabeling of ingredients when they decided to buy the Chobani yogurt products. The plaintiffs hope that the Ninth Circuit judge will reverse Judge Koh’s decision and allow the proposed class action to continue.

In oral arguments, the lawyer representing the plaintiffs and proposed Class, stated that Judge Koh failed to accept the plaintiffs’ reliance as true, though she was actually required to do so as part of the Federal Rules of Civil Procedure, which constituted an error. The lawyer argued that instead, Judge Koh made “incorrect assumptions” about the knowledge and state of mind when the plaintiffs made their yogurt purchase.

In response, Circuit Judge Richard Tallman questioned how the plaintiffs claim they could have relied on the allegedly misleading term “evaporated cane juice” instead of “sugar” in purchasing the yogurt when they admitted that they did not know what evaporated cane juice was.

The plaintiffs’ counsel answered Judge Tallman by saying the plaintiffs were specifically looking for products without added sugar and had checked the ingredients of the Chobani yogurt and did not come across “sugar” or “syrup” before purchasing the yogurt products.

“When the plaintiffs read the ingredient list, they were looking for those terms ‘sugar’ and ‘syrup,’ and they didn’t see it, and thus were misled into thinking the yogurt didn’t have added sugar,” their lawyer stated. “Because it used the term ‘juice,’ it sounded like a healthier ingredient.”

The lawsuit was initially filed in May 2012 by Kane on behalf of herself and a proposed Class of consumers who purchased the yogurt in the four years prior to the launch of the suit. She alleged that the products contained artificial ingredients, coloring, flavors and chemical preservatives despite being labeled as “all natural.”

The class action lawsuit accused Chobani of engaging in deceptive marketing practices that mislead consumers about the healthiness of its products while bolstering its sales. Kane claimed Chobani boasted about using evaporated cane juice, which it called “a natural type of unrefined sweetener” and only natural ingredients in its yogurt. Kane alleged that the yogurt-maker failed to disclose that “evaporated cane juice” is just another term for sugar.

Judge Koh dismissed the case in 2013, but allowed Kane to amend her claims. Following her amended complaint, Koh dismissed Kane’s suit again in 2014, this time with prejudice. Judge Koh ruled that the plaintiffs failed to demonstrate how they were tricked by the term “evaporated cane juice” when their complaint alleged that they knew the related term “dried cane syrup” was another term for sugar.

Chobani maintains that the term “evaporated cane juice” is still as accurate as it can be under federal regulations, and that ”sugar” would be an inaccurate term because it was would indicate a refined sugar, while its yogurt ingredient is not refined sugar.

The plaintiffs are represented by Darren Brown of Provost Umphrey Law Firm LLP and Pierce Gore of Pratt & Associates.

The Chobani Greek Yogurt Class Action Lawsuit is Kane et al. v. Chobani Inc., Case No. 14-15670, in the U.S. Court of Appeals for the Ninth Circuit.