Judge Denies Tote Bag in Current/Elliott Jeans Class Action Settlement

A second settlement proposal in a class action lawsuit alleging that Current/Elliott brand jeans were inaccurately labeled “Made in the USA” was denied by a federal judge who ruled that offering free tote bags was not enough to settle the litigation.

Lead plaintiff Sonia Hofmann filed the class action lawsuit in September 2014 alleging that Current/Elliott brand jeans are labeled as “Made in USA” but actually contain buttons, rivets, zipper assembly, thread, fabric, and other components that are made in foreign countries.

In April of this year, U.S. District Court Judge Gonzalo P. Curiel denied the first proposed settlement agreement noting several deficiencies, including that the $20 gift certificates Current/Elliot offered stand to benefit the company and is therefore inadequate to settle the claims. The main issue with the first settlement proposal was whether offering a $20 e-gift certificate was actually a coupon and, thus not permitted to settle the class action.

In essence, the judge ruled that the electronic gift certificates Current/Elliott initially proposed to settle the litigation constituted coupons requiring Class Members to pay their own money before taking advantage of the coupon.

Additionally, the gift cards can only be used online at Current/Elliott’s website, not at physical store locations.

Current/Elliott had attempted to cure the deficiency by including a denim tote bag in addition to the gift certificate for eligible Class Members.

However, the judge pointed out that since the cost of Current/Elliott merchandise sold online is more than $20, the denim tote bags did not solve the problem of Class Members having to spend their own money to use the $20 gift certificate.

According to the order, the tote bags are worth $128 each.

“The only difference in the new proposed settlement is the addition of the denim tote bag,” noted the judge in his order. “Parties have not rectified the other deficiencies with the proposed settlement identified by the Court.”

The class action settlement also includes a five year in cy pres donation of $250,000 to various charities including Step Up Women’s Network, Juvenile Diabetes Research Foundation and Ability First. Attorneys’ fees of $175,000 are also provided under the terms of the settlement.

Judge Curiel pointed out in his order that the $250,000 in donations also do not solve the problems with the proposed settlement agreement.

The donations, explained the judge, do not deter companies from falsely labeling their products as “Made in the USA” or protect consumers from similar claims.

According to the order denying the proposed settlement agreement in the class action lawsuit, the parties have another 60 days to solve the settlements’ problems and submit an amended settlement agreement for preliminary approval to the court.

The Class is represented by Camille Joy DeCamp and John H. Donboli of the the Del Mar Law Group, LLP; and David P. Hall of the Law Office of David P. Hall.

The Current/Elliott Jeans Class Action Lawsuit is Hofmann v. Dutch LLC., Case No. 3:14-cv-02418-GPC-JLB, in the U.S. District Court for the Southern District of California.