Trader Joe’s ‘All Natural’ Class Action Settlement Gets Final Approval

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A California federal judge last week gave final approval to a $3.4 million class action settlement over allegations Trader Joe’s Co. labeled some of its products as “all natural” even though they contain synthetic ingredients.

The false advertising class action lawsuit alleged that Trader Joe’s falsely labeled several of its products as “All Natural” or “100% Natural” even though they contained one or more of the following allegedly synthetic ingredients: ascorbic acid, cocoa processed with alkali, sodium acid pyrophosphate, xanthan gum, and vegetable mono- and diglycerides.

The Trader Joe’s lawsuit asserted claims for violation of the Magnuson Moss Warranty Act, common law fraud, unlawful business practices in violation of California’s Unfair Competition Law, false advertising, fraudulent business practices and violation of the Consumer Legal Remedies Act.

Trader Joe’s denies any wrongdoing but agreed to the class action settlement, which was preliminarily approved by U.S. District Judge William Orrick in February.

On July 11, Judge Orrick gave final approval to the Trader Joe’s class action settlement, finding that the terms are fair, reasonable and adequate. He noted that Class Members filed nearly 60,000 claims for the class action settlement. There were 23 potential claimants who opted out and 18 who objected to the Trader Joe’s settlement. However, Judge Orrick said the objections are “not meritorious and should not undermine this successful settlement.”

Under the terms of the Trader Joe’s class action settlement, each Class Member with proof of purchase will be eligible to receive a full reimbursement for each product purchased during the Class Period. Class Members without proof of purchase can receive reimbursement for up to 10 products. If there are leftover settlement funds, they will be distributed to Class Members in the form of products at Trader Joe’s stores throughout the United States.

Trader Joe’s has also agreed to stop using the disputed labels on the products unless they are reformulated or the law is changed such that the use of “All Natural” or “100% Natural” would not be false or misleading.

The deadline to file a claim for the Trader Joe’s class action settlement passed on June 16, 2014. If you missed out, sign up for our free newsletter to receive updates on new class action lawsuits and settlements. You can also check out which class action settlements are still accepting claims in our Open Class Action Settlements section.

Class Members are represented by Janet Lindner Spielberg of the Law Offices of Janet Lindner Spielberg; Michael D. Braun of Braun Law Group PC; and Joseph Kravec Jr., Wyatt A. Lison and McKean J. Evans of Feinstein Doyle Payne & Kravec LLC.

The Trader Joe’s ‘All Natural’ Class Action Lawsuit is Tamar Davis Larsen, et al. v. Trader Joe’s Co., Case No. 3:11-cv-05188-WHO, in the U.S. District Court for the Northern District of California.

UPDATE: Checks for the Trader Joe’s class action settlement were mailed Dec. 23. Congratulations to our viewers who filed claims and got paid!