Convenience store chain settles Kona coffee false advertising lawsuit for $12M

Kona coffee lawsuit overview: 

• Who: MNS Ltd., which operates ABC Stores convenience stores mainly in Hawaii, agreed to a $12 million settlement with a class of farmers in the Kona region of Hawaii.
• Why: The Kona coffee lawsuit settlement was reached in response to lawsuits claiming that ordinary coffee was sold under a Kona coffee name.
• Where: The Kona coffee lawsuit was filed in federal court in Washington.

MNS Ltd. agreed to pay $12 million to settle its portion of a class action lawsuit claiming that companies were selling regular coffee under the Kona coffee name.

The class includes farmers and those who produce Kona coffee, which comes from the slopes of Hualalai on the island of Hawaii. The $12 million settlement with the owner of ABC Stores in Hawaii is the largest settlement so far in the class action.

More than $21 million has been obtained in previous settlements with a $7.8 million settlement with Mulvadi Corp., a coffee company, set to follow the MNS settlement.

“Like each of the settlements previously approved and implemented, this settlement elicited no objections and no opt-outs,” the Kona coffee lawsuit settlement says. “This is especially noteworthy because class members have been repeatedly notified of settlements and had received their checks from multiple prior settlements: they are familiar with the litigation, have seen the results, and continue to offer their support.” 

Settlement: Companies must accurately label percentage of Kona coffee beans used

The Kona coffee lawsuit plaintiffs are now requesting final approval of the settlement as well as class certification. The settlement also includes an agreement to “accurately and unambiguously state on the front label of the product the minimum percentage of authentic Kona coffee beans the supplier of the product states are contained in the product.”

Hawaii law has labeling standards for allowing the companies to claim a coffee is Hawaii grown roasted or instant coffee.

L&K Coffee Co., operators of Magnum Coffee Roastery, agreed to pay $6.15 million earlier this year to a group of Hawaiian coffee farmers to resolve claims they sold ordinary coffee under the name “Kona.”

Do you purchase Kona coffee? Let us know in the comments.

The plaintiffs are represented by Nathan T. Paine, Daniel T. Hagen and Joshua M. Howard of Karr Tuttle Campbell along with Jason L. Lichtman. Daniel E. Seltz and Andrew Kaufman of Lieff Cabraser Heimann and Bernstein LLP. 

The Kona coffee lawsuit is Corker, et al. v. MNS Ltd, Case No. 2:19-CV-00290-RSL, in the U.S. District Court for the Western District of Washington at Seattle.

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