Fuddruckers Settles ‘Kobe’ Beef False Advertising Class Action

A California judge has granted preliminary approval of a settlement in a Fuddruckers class action lawsuit claiming the restaurant falsely advertised some of its products as containing a premium Japanese beef.

Los Angeles Superior Court Judge Kenneth Freeman signed off on the agreement without hearing oral argument on the motion. The proposed agreement will allow affected customers of Luby’s Fuddruckers Restaurants LLC to submit claims for a voucher.

Final approval is pending a further hearing on the settlement’s fairness.

Plaintiff Jaime Gonzalez filed this Fuddruckers class action in November 2014. Gonzalez claimed that Fuddruckers sold menu items advertised as “Kobe” beef during a time when imports of Kobe beef were banned.

True Kobe beef comes only from Wagyu cattle raised and slaughtered in the Kobe region of Japan, Gonzalez says. He states that from May 2010 until shortly before he filed his claim, the U.S. Department of Agriculture banned imports of Kobe beef due to concerns about disease.

Gonzalez argued that Fuddruckers misled customers into purchasing non-Kobe beef products by advertising that they actually contained Kobe beef. The Fuddruckers class action lawsuit raised claims based on misrepresentation, fraud, breach of contract, and violation of California consumer protection laws.

The proposed settlement will allow affected plaintiff Class Members to apply for a voucher for their Fuddruckers purchase. Class Members who can document their purchase with a receipt or bank statement will receive a voucher for $9. Those with no documentation can get a voucher worth $6.

As the lead plaintiff, Gonzalez himself has requested an enhancement award of $3,000. Plaintiff’s attorneys are asking the court to approve an award of $89,000 in attorneys’ fees.

The proposed settlement sets no limit on the total amount Fuddruckers may have to pay. The company says it plans to pay all valid claims.

The parties’ joint motion for settlement says that Fuddruckers has already taken corrective action on its menus and other promotional materials. The company now uses qualified descriptors like “American Kobe” to describe any product that does not contain beef from Japan-sourced Wagyu cattle.

The proposed settlement requires the company to continue that practice, avoiding describing any such products as simply “Kobe.”

The settlement does not require Fuddruckers to admit any fault. Officially, the company continues to deny Gonzalez’s allegations.

According to court documents, Fuddruckers operates 17 restaurants in California, where it serves more than 32,000 of the contested menu items per year.

For purposes of administering the settlement, Judge Freeman certified a plaintiff Class consisting of California customers who saw a Fuddruckers product advertised either online or in a restaurant as “Kobe” and who purchased that product at a California Fuddruckers between Nov. 26, 2010 and Dec. 19, 2014.

Instructions on how to file a claim for the Fuddruckers “Kobe” beef class action settlement were not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

Representing Gonzalez and the plaintiff Class are attorneys Edwin Aiwazian and Arby Aiwazian of Lawyers for Justice PC; and Kevin Shenkman and Mary Hughes of Shenkman & Hughes.

The Fuddruckers False Advertising Class Action Lawsuit is Jaime Gonzalez v. Luby’s Fuddruckers Restaurants LLC, Case No. BC565138, in the Superior Court of the State of California, County of Los Angeles.

UPDATE: The California Fuddruckers “Kobe” Beef Class Action Settlement is now open! Click here to file a claim.