Kellogg’s Sugary Cereal Class Action Settles For $20M

UPDATE 2: On July 20, 2020, consumers asked a judge to approve a revised version of a $20 million Kellogg’s cereal class action settlement.

UPDATE: On Feb. 20, 2020, a California federal judge rejected a proposed $31.5 million sugar content class action settlement struck between Kellogg’s and consumers, that would have ended claims that the company falsely advertised some of its products as healthy despite their high sugar content.

Kellogg’s recently agreed to pay $20 million to resolve claims that they falsely advertised their sugar-filled cereals as healthy.

The Kellogg’s class action settlement will reportedly provide $20 million in direct Class Member payments and will implement marketing changes estimated to be worth more than $11 million.

These changes include the removal or modification of claims such as “healthy,” “wholesome” and “nutritious” on cereals such as Smart Start and Raisin Bran.

If the settlement is approved, Class Members will include consumers who purchased Raisin Bran, Frosted Mini-Wheats, Smart Start, Crunchy Nut, and Krave cereals, as well as Nutri-Grain snack bars between Aug. 29, 2012, and Oct. 21, 2019.

In order to benefit from the settlement, Class Members will reportedly need to visit a website landing page that will calculate a “base refund” estimate. This estimate will be used to offer several types of compensation, including cash or vouchers for Kellogg’s products. Of the monetary settlement, $12 million will reportedly be set aside for cash compensation and the remaining $8.25 million will go towards funding vouchers.

Plaintiff Stephen Hadley filed his Kellogg’s class action lawsuit in August 2016, taking issue with the “healthy” marketing associated with the company’s Raisin Bran, Frosted Mini-Wheats, and Smart Start cereals, along with Nutri-Grain breakfast bars.

Hadley argued that the products’ labeling used phrases like “lightly sweetened” and “wholesome goodness” to imply that the products are healthy and low in sugar. However, despite these representations, the cereal and breakfast bars reportedly contain 18 to 40 percent added sugars.

Kellogg’s attempted to dismiss Hadley’s claims, but U.S. District Judge Lucy H. Koh mostly denied this dismissal motion. Although Judge Koh dismissed some claims based on “puffery,” a common type of marketing exaggeration, many of the claims were allowed to proceed.

In August 2018, Hadley secured another victory when Judge Koh certified three Classes of consumers who purchased Raisin Bran, Frosted Mini-Wheats, or Smart Start cereals, respectively. The court refused to certify a fourth Class of consumers who purchased Nutri-Grain breakfast bars based on the packaging variations of the products.

Kellogg’s has since agreed to resolve the class action claims against them but has not admitted any wrongdoing. Both sides are reportedly satisfied with the Kellogg’s class action settlement.

The Kellogg’s class action settlement is scheduled for a preliminary approval hearing on Feb. 6, 2020.

Did you buy sugary Kellogg’s cereal-based on representations that the products were healthy? Let us know what you think about this settlement in the comment section below.

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.

The settlement Class is represented by Jack Fitzgerald, Trevor M. Flynn and Melanie Persinger of the Law Office of Jack Fitzgerald PC and Sidney W. Jackson III of Jackson & Foster LLC.

The Kellogg’s Cereal Class Action Lawsuit is Hadley v. Kellogg Sales Co., Case No. 5:16-cv-04955, in the U.S. District Court for the Northern District of California.

Read More Lawsuit & Settlement News:

Golden Grahams Class Action Says Cereal Boxes Contain Too Much Empty Space

Neocate Infant Formula Linked to Broken Bones, Rickets: Study

Honey Bunches of Oats Class Action Says Cereal Sweetened With Sugar, Corn Syrup

Why is Black Lung Disease Still Killing Coal Miners?