Dreamfields Pasta $8M Settlement Receives Final Approval

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A New Jersey federal judge has granted final approval to a class action settlement against Dakota Growers Pasta Company Inc., makers of Dreamfields pasta, alleging that its claims made about the pasta’s glycemic index are false representations.

Plaintiffs Joseph Mirakay, Louis Messina, Michael Elefterakis and John Gembinski alledged that the Dreamfields pasta makers violated the New Jersey Consumer Fraud Act, breach of contract, breach of express and implied warranty as well as other state laws.

They alleged that Dakota Growers falsely claims that Dreamfields pasta product is “a healthy alternative to traditional pasta, that it has a lower glycemic index than traditional pasta, and that it contains only five grams of digestive carbohydrates.”

The plaintiffs and Dakota Growers decided to work the class action lawsuit out through mediation after scrutinizing the “strengths and weaknesses of their claims” instead of going to trial.

After mediation, the parties agreed to a $5 million class action settlement, which includes the notice and administration costs and compensation for Class Members at $1.99 per box of pasta they purchased. They also agreed to $2.9 million to pay for attorney fees, court costs, and awards for class representatives. The total Dreamfields pasta settlement agreement is $7.9 million.

“There is no limit on the number of boxes purchased  on-line for which class members may be reimbursed; however, class members who purchased Dreamfields in a store may submit a claim for reimbursement of $1.99 per box for up to fifteen boxes,” U.S. District Judge Joel A. Pisano wrote in his Oct. 20 opinion.

The parties reached the false advertising class action settlement agreement over Dreamfields pasta in April. However, Dakota Growers continues to deny any wrongdoing. The company agreed to the settlement to avoid trial.

The class was for anyone who purchased Dreamfields pasta that had a label claiming a low “glycemic index” or “digestive carbs” from February 2004 and July 1, 2014.

Class Members had until Sept. 1 to file a claim. And the parties had a final hearing on Sept. 24.

“In addition to the monetary aspects of the settlement, [Dakota growers] also agreed to injunctive provisions which remove the advertising at issue,” Judge Pisano explained.

Dakota Growers “agreed to remove, for a period of one year from the date of the final judgement and order, all statements from Dreamfields packaging claiming the pasta has: (1) a lower glycemic index than traditional pastas; (2) the ability to reduce spikes in blood glucose levels; and (3) only five grams of digestible carbohydrates.”

In addition, “to the extent that the amount of claims submitted does not exhaust the total available settlement funds, then each class members’ recovery will be adjusted upwards by as much as 50 percent and any residual funds will not revert to [the Dreamfields pasta makers] but rather, will be donated … to the American Diabetes Association.”

The plaintiffs are represented by Brian D. Penny of Goldman Scarlato Karon & Penny PC, William B. Federman of Federman & Sherwood, John Zaremba of Zaremba Brownell & Brown PLLC and Charles W. Branham III of Branham Law Group LLP.

The Dreamfields Pasta Class Action Lawsuit is Mirakay, et al. v. Dakota Growers Pasta Co. Inc., et al., Case No. 3:13-cv-04429, in the U.S. District Court for the District of New Jersey.

UPDATE: The Settlement Administrator is notifying Class Members that the Dreamsfield Pasta class action settlement has been granted final approval and all appeals have been resolved. Settlement checks are expected to be mailed out approximately June 1, 2015. Let us know if you receive a check!

UPDATE 2: On June 3, 2015, viewers began reporting that they have received checks in the mail from the Dreamfields Pasta class action settlement. Congratulations to everyone who submitted valid claims and got PAID!