Gluten-Free Cheerios Class Action Lawsuit Tossed By Federal Judge

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An Oregon federal judge dismissed a class action lawsuit against General Mills Inc. over a contaminated batch of gluten-free Cheerios.

The gluten-free Cheerios class action lawsuit was filed after a July 2015 transportation incident, in which bulk rail cars carrying gluten-free oat flour were offloaded into bulk trucks. However, General Mills was reportedly unable to verify that those bulk trucks had been adequately cleaned to meet its flour-handling standards for gluten-free products.

The transportation breakdown resulted in wheat flour contamination of the gluten-free oat flour that was used to make gluten-free Cheerios.

On Oct. 5, 2015, General Mills issued a voluntary recall and refund program for the gluten free cereals that were affected by the contamination.

U.S. District Judge Michael McShane granted a request by General Mills to dismiss the gluten-free cheerios class action lawsuit on July 27. General Mills argued that the gluten free class action lawsuit should be dismissed because it issued a timely recall and refund program for consumers affected by the contaminated cereal. The company also argues that plaintiff Christopher Hamilton lacks standing to bring the Cheerios class action lawsuit.

Hamilton has celiac disease and paid $15.98 for two twin packs of gluten-free cereal in September 2015, according to the General Mills class action lawsuit.

In the order, Judge McShane notes that Hamilton failed to claim that he suffered any adverse effects from the cereal. Further, the judge notes that Hamilton failed to mitigate his damages by accepting the recall and refund offer from General Mills.

“Hamilton paints a discreet, manufacturing mishap as a grand scheme of deceptive advertising, marketing and labeling,” Judge McShane writes. “I find this to be creative at best. But even so, Hamilton does not allege that he suffered any injury as a result of those alleged wrongdoings except a $15.98 purchase to which he is entitled a refund.”

Judge McShane found that Hamilton failed to establish that he suffered an “ascertainable loss” to give him standing to bring the gluten-free cereal class action lawsuit.

“Here, Hamilton does not allege any injury other than reliance on General Mills’ ‘misrepresentation’ to purchase the cereal,” Judge McShane states in his order dismissing the gluten free cereal class action lawsuit. “And because Hamilton’s loss of $15.98 is mooted by General Mills’ refund program, he does not have standing to sue because he has not cognizably alleged any other concrete and particularized injury.”

Judge McShane agreed with General Mills’ argument that Hamilton does not have standing for injunctive relief because he did not identify any actual threat of future harm. He did not assert that the contamination was anything more than an isolated incident. Further, the judge noted that General Mills worked in conjunction with the U.S. Food and Drug Administration to issue the recall and has been in compliance with the FDA ever since.

The judge will allow Hamilton to file an amended General Mills class action lawsuit that demonstrates he suffered an ascertainable loss.

Hamilton is represented by Bonner Walsh of Walsh LLC and Adam Gonnelli of Faruqi & Faruqi LLP.

The Gluten Free Cheerios Class Action Lawsuit is Christopher Hamilton v. General Mills Inc., et al., Case No. 6:16-cv-00382, in the U.S. District Court for the District of Oregon.