Judge Denies $1.5M Annie Chun’s MSG Class Action Settlement

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A California judge has denied approval of a proposed $1.5 million class action settlement stemming over allegations that the instant soup and noodle company Annie Chun’s falsely advertised its products as 100% all natural.

U.S. District Judge Dana M. Sabraw stated that there was only one reason for the denial of the Annie Chun’s class action lawsuit settlement; otherwise all the other factors seemed fair, reasonable and adequate. According to Judge Sabraw, lead plaintiff Dennis Peterson did not do enough to explain why California laws should apply to the proposed nationwide Class.

The federal judge pointed out that while the instant soup products are manufactured by CJ America Inc. which does business in California, it is unclear why Annie Chun’s customers across the nation should qualify to join the false advertising class action lawsuit against the U.S. subsidiary of a South Korean corporation.

“Absent a showing that California law should apply to the claims of class members outside of California, Rule 23(b)(3)’s predominance requirement is not met, and the class cannot be conditionally certified,” Judge Sabraw said.

Peterson filed the Annie Chun’s false advertising class action lawsuit in October 2014 after claiming to be misled into purchasing one of the prepackaged soup and noodle products by the claims on the food label. According to Peterson, Annie Chun’s Udon Soup Bowl states that the product contains “100% all natural ingredients” and “No MSG Added.”

However, the Annie Chun’s all natural class action lawsuit argues that monosodium glutamate (MSG) was either already in the ingredients or was created through the cooking process. Peterson claims that MSG can cause consumers to experience nausea and headaches.

The Annie Chun’s class action lawsuit accused CJ America of violating California’s Consumer Legal Remedies Act, California’s Unfair Competition Law, California Business and Professions Code, and California’s False Advertising Law.

Although the manufacturer of Annie Chun’s instant soup and noodle products denied any wrongdoing with regard to its product labels, the company agreed to the terms of the settlement which included a $1.5 million settlement fund for potential Class Members as well as the agreement not to print “No MSG Added” on the labels of Annie Chun’s or Ramen House products for the next three years.

Peterson proposed a nationwide Class of all persons who bought one or more of CJ Foods’s Subject Products after Nov. 19, 2012 with the representations “No MSG Added” including: Chinese Chicken Soup Bowl, Hot & Sour Soup Bowl, Korean Kimchi Soup Bowl, Miso Soup Bowl, Thai Tom Yum Soup Bowl, Udon Soup Bowl, Vietnamese Pho, Garlic Scallion Noodle Bowl, Korean Sweet Chili Noodle Bowl, Kung Pao Noodle Bowl, Pad Thai Noodle Bowl, Peanut Sesame Noodle Bowl, Teriyaki Noodle Bowl, Soy Ginger Ramen, Spicy Chicken Ramen, and Spring Vegetable Ramen.

The proposed Annie Chun’s class action settlement would have awarded each Class Member between $1.50 and $15.

Petersen is represented by Rosemary M. Rivas of Finkelstein Thompson LLP and Marc L. Godino of Glancy Prongay & Murray LLP.

The Annie Chun All Natural False Advertising Class Action Lawsuit is Dennis Petersen v. CJ America Inc., Case No. 3:14-cv-02570, in the U.S. District Court for the Southern District of California.

UPDATE: On Apr. 12, 2016, the Annie Chun’s “No MSG Added” class action settlement is now open! Click here to file a Claim Form or visit www.NoMSGAddedSettlement.com for details.

UPDATE 2: On Dec. 31, 2016, Top Class Actions viewers who submitted timely and valid claims for the Annie Chun’s class action settlement began receiving checks worth as much as $15! Congratulations to all our readers who got PAID!