L&K Coffee Co. Kona coffee false advertising $6.15M class action settlement

L&K Coffee Co. agreed to a $6.15 million settlement to resolve a class action lawsuit claiming it falsely advertised its coffee as originating from the Kona region.

The settlement benefits individuals who farmed Kona coffee in the Kona district and sold their Kona coffee between Feb. 27, 2015, and Oct. 4, 2022.

L&K is a coffee company that owns several coffee brands including Magnum Coffee Roastery. According to a class action lawsuit, L&K falsely advertises its coffee products as originating from the Kona District in Hawaii despite being farmed from other areas.

The Kona District on the Big Island of Hawaii grows some of the best quality coffee in the world due to its volcanic soil, elevation and humidity. Consumers are willing to pay a higher price for Kona coffee based on its reputation, plaintiffs explain. L&K allegedly takes advantage of this reputation by passing its ordinary coffee as higher quality Kona coffee.

Farmers say they have been injured by this false advertising. Counterfeit Kona coffee products allegedly drive down the price of genuine Kona coffee. In addition, counterfeit products allegedly bring down the reputation of Kona coffee when customers make judgments based on inferior products.

“By their actions, Defendants have artificially depressed the market price of authentic Kona coffee, harmed the reputation of authentic Kona coffee as a premium product, and caused consumer confusion as to the legitimate sources of Kona coffee,” the Kona coffee class action lawsuit contends.

L&K hasn’t admitted any wrongdoing but agreed to a $6.15 million class action settlement to resolve these allegations. Other coffee companies, such as Kroger and Costco, agreed to similar settlements with coffee farmers.

Under the terms of the Kona coffee class action settlement, class members can collect a pro rata payment based on their reported sales volumes. Payments will also vary depending on the net settlement fund after the deduction of fees, expenses, awards and voluntary contributions to the Kona region.

In addition to providing cash payments, L&K agreed to make changes to its labeling to no longer indicate its coffee products originate from the Kona region.

The deadline for exclusion and objection has passed. 

The final approval hearing for the Kona coffee class action settlement was held Feb. 16, 2023. 

Class members who previously submitted a claim form with prior settlements do not need to resubmit their information. 

Class members who have not made a claim with a prior settlement will need to submit a claim form. 

The deadline to submit a claim form is May 30, 2023.

Who’s Eligible

Individuals who farmed Kona coffee in the Kona district and sold their Kona coffee between Feb. 27, 2015, and Oct. 4, 2022.

Potential Award

Varies

Proof of Purchase

Tax name (farm or individual) and Tax ID (SSN/EIN), along with the in-production coffee acreage of the farm for each year from 2015 to 2021.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

05/30/2023

Case Name

Bruce Corker, et al. v. Costco Wholesale Corp., et al., Case No. 2:19-cv-00290-rsl, in the U.S. District Court for the Western District of Washington at Seattle.

Final Hearing

02/16/2023

Settlement Website

KonaCoffeeSettlement.com

Claims Administrator

Kona Coffee Farmers Settlement Administrator
c/o JND Legal Administration
PO Box 91232
Seattle, WA 98111
833-667-1227

Class Counsel

Nathan T Paine
KARR TUTTLE CAMPBELL

Jason L Lichtman
Daniel E Seltz
Andrew R Kaufman
LIEFF CABRASER HEIMANN & BERNSTEIN LLP

Defense Counsel

Gregory M Hatton
THEODORA ORINGHER PC