Whole Foods, Millennium $8M Kombucha Class Action Settlement Gets Early Nod

An $8.25 million class action lawsuit settlement between Whole Foods Market Inc., GT ‘s Kombucha and a group of consumers who say the carbonated fermented tea drink falsely labels its alcohol, sugar and antioxidant content has been given preliminary approval.

After denying previous settlement terms in September, U.S. District Judge Philip S. Gutierrez gave the go ahead to the revised settlement deal which along with a monetary payout, mandates specific labeling changes by GT’s Kombucha brand owner, Millennium Products Inc.

“The maximum settlement amount of $8.25 million … represents approximately 21 percent of the estimated potential recovery, which falls well within the range of possible approval,” Judge Gutierrez wrote.

In March 2015, plaintiffs Jonathan Retta, Kirsten Schofield and Jessica Manire filed the class action lawsuit against Millennium Products claiming the company mislabeled its kombucha beverage by using the term “antioxidant” when the drink allegedly contained none, labeling the drink as non-alcoholic when it allegedly contained alcohol in excess of the amount permitted for non-alcoholic beverages, and for allegedly understating the amount of sugar in the drink.

Whole Foods, who sells and distributes GT’s Kombucha in their stores, was named as a defendant in the plaintiffs’ fourth amended complaint.

The initial lawsuit was also consolidated in November with a related case filed by consumers Nina Pedro and Rosalind Lewis who allege that the kombucha beverage leaks and can explode without warning as a result of faulty packaging and excessive carbonation.

Under the terms of the settlement, the $8.25 million will go towards paying for administrative costs, attorneys’ fees and expenses. Each of the named plaintiffs will receive a $2,000 incentive award for their efforts and role in bringing the class action lawsuit.

Class Member awards will be distributed in the form of either cash payments or product vouchers. Specifically, claimants who do not have proof or purchase may receive a $3.50 cash award for each product purchased during the class period, for a maximum of 10 claims.

Those who claim more than $35 in cash awards must submit proof of purchase and may receive a cash payment of up to $60. Alternatively, Class Members may opt to receive a product voucher(s), redeemable for a free Millennium product at retail stores.

In addition to the monetary payout, the settlement provides for injunctive relief mandating Millennium to cease printing labels with the term “antioxidant.”

The company must also add warning labels that “the products contain naturally occurring alcohol and should not be consumed by individuals seeking to avoid alcohol due to pregnancy, allergies, sensitivities or religious beliefs” and that “Contents are under pressure. Failure to refrigerate may increase pressure, causing product to leak or gush.”

Furthermore, the company has promised to test regularly to ensure accuracy of their represented sugar and alcohol content.

Class Members include “all persons in the United States and U.S. Territories who purchased at retail one of the more the [Kombucha] products from March 11, 2011 up to and including the [Settlement] notice date.”

Judge Gutierrez denied the parties’ motion for preliminary approval of an earlier settlement in September, expressing concern over the relationship between the amount of the settlement fund and harm suffered by Class Members.

He also questioned the value of the proposed voucher option as compared to the cash option award for Class Members. The current settlement provides for an increased cash award of $3.50 for each purchased drink, and a voucher for the equivalent value.

Additionally, in his order granting preliminary approval, Judge Gutierrez wrote that “since the maximum recovery at trial could amount to $38 million, the $8.25 million deal here falls within the range of approval, “in particular considering the risks and expenses associated with continued litigation.”

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The consumers are represented by Annick Marie Persinger, Lawrence Timothy Fisher and Yeremey O. Krivoshey of Bursor and Fisher PA, Clayeo C. Arnold and Joshua H. Watson of Clayeo C. Arnold APC, and John A. Yanchunis of Morgan & Morgan Complex Litigation Group.

The Whole Foods, Millennium Kombucha Class Action Lawsuit is Jonathan Retta, et al. v. Millennium Products Inc., et al., Case No. 2:15-cv-01801, in the U.S. District Court for the Central District of California.

UPDATE: The Whole Foods, GT’s Kombucha class action settlement is now open! Click here to file a claim.

UPDATE 2: On March 5, 2018, Top Class Actions viewers started receiving checks worth as much as $33.70 from the Whole Foods, GT’s Kombucha class action settlement. Congratulations to everyone who filed a claim and got PAID!