Sara Lee Class Action Lawsuit Says There’s Oil in ‘All Butter Pound Cake’

A New York man has filed a class action lawsuit against the Sara Lee company over claims the bakery committed fraud by adding soybean oil and food coloring to its frozen All Butter Pound Cake.

John Briley of New York claims the Sara Lee Frozen Bakery willfully misled him and other customers by labeling its pound cake as an “All Butter Pound Cake” even though it has soybean oil in it.

Briley also says the bakery’s “No Colors From Artificial Sources,” labeling on the package is inaccurate because the cake contains annatto, which is a food coloring. Annatto contributes to the “yellowish-hue” of the frozen pound cake, which is also depicted in imagery on the outside of the package, the class action says.

“The use of annatto is permitted in butter, but used in the (pound cake), gives the consumer the impression that the product contains more butter than it does,” the class action lawsuit says, “and only contains butter as its shortening ingredient.”

Annatto is a type of food coloring made from the seeds of the achiote tree, which is indigenous to South and Central America, Mexico and the Caribbean. According to Healthline, annatto might not be a household name, but around 70% of natural food colors are derived from this ingredient.

The Sara Lee “All Butter Pound Cake” is sold in a 10.75-ounce package in retail stores and online for no less than $3.99, excluding tax.

Its exterior packaging features claims the cake has “No Artificial Flavors,” “No Colors From Artificial Sources,” and “No High Fructose Corn Syrup,” the class action lawsuit says. The frozen cakes are sold at a higher price than other, similar products, the plaintiff claims.

Briley says customers “prefer butter to chemically produced ‘vegetable’ oils when baking for reasons including taste, health and avoidance of highly processed artificial substitutes for butter.”

The class action lawsuit also claims that butter costs more than vegetable oil alternatives such as the soybean oil contained in the Sara Lee cake, and he would not have paid as much for the Sara Lee cake if he knew it contained the oil.

Soybean oil is derived from whole soybeans that are shelled and crushed, extracting the oil from the mashed bean pulp. The oil is then purified to remove particles and contaminants that can impact its flavor, color or aroma.

According to the International Food Information Council Foundation, soybean “is used in a wide variety of packaged foods, baked goods, snacks, dressings and sauces, in addition to being sold on its own as a cooking oil.” It is classified as a vegetable oil.

Sara Lee’s packaging for the frozen pound cake is designed to “deceive, mislead and defraud” customers, Briley’s class action says. The plaintiff claims the bakery violated state consumer protection statutes, committed negligent misrepresentation and fraud, breached express warranty, and benefited from unjust enrichment.

Have you purchased a Sara Lee “All Butter Pound Cake” thinking the only fat it contained was butter? Did you feel misled when you discovered it contained soybean oil and other ingredients? Tell us about it in the comment section below.

Plaintiff John Briley and the proposed Class Members are represented by Spencer Sheehan of Sheehan & Associates PC.

The Sara Lee All Butter Pound Cake Class Action Lawsuit is John Briley v. Sara Lee Frozen Bakery, Case No. 7:20-cv-07276, in the U.S. District Court for the Southern District of New York.

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