Coke Will Pay $2.5M To Settle Seagram’s Ginger Ale Class Action

The Coca-Cola Co. has agreed to pay $2.5 million to resolve class action claims that Seagram’s ginger ale labels are misleading.

According to plaintiff Jackie Fitzhenry-Russell, the settlement provides a reasonable resolution to her class action claims that Seagram’s ginger ale labels mislead customers by claiming that the drink is “made with real ginger.”

Under the Seagram’s ginger ale settlement, Coke will have to stop labeling their ginger ale with these claims.

Instead, they can use statements such as “real ginger extract” or “natural ginger taste.”

In addition to the label changes, Coke has pledged to pay $2.5 million into a settlement fund.

Settlement Class Members who file a valid claim will be able to collect around 80 cents per product with a maximum payment of $10 per customer without proof of purchase and a maximum payment of $80 if customers can provide proof of purchase.

The proposed settlement will benefit all U.S. consumers who purchased Seagram’s ginger ale since April 1, 2013.

The proposed settlement will also provide payment for Class counsel and a service award for Fitzhenry-Russell. Class Counsel plans to ask for around $800,000 in court costs and attorneys’ fees. They will also request a $5,000 service payment for Fitzhenry-Russell.

Fitzhenry-Russell states that the proposed settlement is a fair and reasonable resolution to her class action lawsuit.

“Under the circumstances, plaintiffs and plaintiffs’ counsel appropriately determined that the instant settlement outweighs the gamble of continued litigation,” the settlement proposal states.

The terms of the settlement still need to be given approval by U.S. District Judge Edward J. Davila, the judge overseeing the class action lawsuit in the Northern District of California.

If Judge Davila gives preliminary approval, the settlement will move forward with the beginnings of administration. After that, the settlement still needs to survive a round of final approval in order for settlement Class Members to receive payment.

Fitzhenry-Russell first filed her claims against The Coca-Cola Co. in late 2016. She argued that the Seagram’s ginger ale labeling wrongfully advertises their products as “made with real ginger.”

This representation was allegedly misleading because the products are made with extracts and flavorings rather than real ginger.

According to Fitzhenry-Russell’s class action lawsuit, Coke purposefully misleads its customers with these false representations in order to help Seagram’s ginger ale compete with smaller brands.

Health conscious consumers try their best to purchase products that are made with natural ingredients and often turn towards smaller, natural brands when shopping. Fitzhenry-Russell claims that Coke tried to steal business from these small brands with their allegedly false representations.

In October 2017, Fitzhenry-Russell’s class action survived a dismissal motion after Judge Davila found that she had sufficiently brought claims under several California laws including the Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

Fitzhenry­-Russell and the proposed Class are represented by Adam Gutride, Seth Safier, Marie McCrary, Matthew McCrary and Kristen Simplicio of Gutride Safier LLP.

The Seagram’s Ginger Ale Class Action Lawsuit is Fitzhenry-­Russell v. The Coca­-Cola Co., Case No. 5:17-­cv-­00603, in the U.S. District Court for the Northern District of California.

UPDATE: On June 13, 2019, the Coca-Cola Co. and a group of Seagram’s ginger ale drinkers received preliminary approval for a settlement that would end claims that the beverage is not made with real ginger as advertised.

UPDATE 2: July 2019, the Seagram’s Ginger Ale class action settlement is now open. Click here to file a claim.

UPDATE 3: On Feb. 27, 2020, Top Class Actions viewers started receiving checks from the Seagram’s Ginger Ale class action settlement worth $10.40. Congratulations to everyone who filed a claim and got PAID!

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