Amy’s Kitchen Dodges False Labeling Class Action Lawsuit

Amy’s Kitchen Inc. successfully sought dismissal of a putative false labeling class action lawsuit by a California man who alleged that the company improperly listed “evaporated cane sugar” instead of sugar in its ingredients list in a decision delivered on Nov. 25. The plaintiff has until Dec. 23 to submit an amended complaint.

Plaintiff Robert E. Figy sued Amy’s Kitchen in August 2013 after purchasing several products, including Amy’s Light in Sodium Spinach Pizza, Amy’s Organic Vegetarian Baked Beans, Amy’s Organic Low Fat Butternut Squash Soup, Amy’s Low Fat Cream of Tomato Soup and Amy’s Chunky Tomato Bisque. Figy alleged that the products improperly listed “evaporated cane juice” on the label instead of sugar, which harmed consumers who paid a premium price for products that were misbranded. 

Judge Susan Illston noted in her decision to dismiss the class action lawsuit that Figy did not say he read the ingredients labels of these products prior to purchasing them, and therefore did not see the term “evaporated cane juice.” As a result, Figy can’t seek damages based on violations of California’s Unfair Competition Law and related state statutes that food and beverage manufacturers to list all ingredients as their “common or usual name.” Pursuant to case law, “to plead actual reliance, the ‘plaintiff must allege that the defendant’s misrepresentations were an immediate cause of the injury-causing product.”

Judge Illston wrote that at least a part of his economic injury needed to rely on reading the information, even if “there may be an inference of reliance upon a showing of materiality” in the class action lawsuit. Similar cases have resulted in dismissal “where the plaintiff fails to allege any reliance on the representations at issue.” The order did grant Figy leave to amend the complaint to meet those standards.

The case is just one of a number recent false label class action lawsuits filed against various food and beverage manufacturers regarding the alleged misrepresentation of sugar substances with the use of “evaporated cane juice” rather than simply listing “sugar” and/or “dried cane syrup.” They have met with various levels of success, with some judges throwing out cases because the sugar content was noted in the nutrition facts.

One recent evaporated cane juice class action lawsuit involving Lifeway Kefir yogurt drinks only sought damages based on counts of strict liability; previous class action lawsuits had failed to adequately plead facts that met the more stringent requirements for alleging fraud. Interestingly, Figy is also the lead plaintiff in the Lifeway Kefir class action lawsuit.

Figy is represented by Ben F. Pierce Gore of Pratt & Associates and by D’Juana Parks of Provost Umphrey Law Firm LLP.

The Amy’s Kitchen Class Action Lawsuit is Robert E. Figy v. Amy’s Kitchen Inc., Case No. 13-cv-03816, U.S. District Court, Northern District of California.

UPDATE: The Amy’s Kitchen false labeling class action lawsuit was dismissed on March 7, 2014.