Cargill Settles "Natural" Labeling Lawsuit

MINNEAPOLIS, Minn.Cargill, Inc., the food producer and marketer, has agreed to settle a lawsuit in federal court that alleged two consumers were deceived by the labeling of its Truvia consumer products.

At issue: whether its ingredients stevia leaf extract and erythritol are "natural".

Under the settlement agreement, 148-year-old Cargill has agreed to put $5 million into a settlement fund excluding another $300,000 it will pay for administration expenses. Cargill also has agreed to make some changes to its website and labels.

Denying any wrongdoing, Cargill said it is entering the agreement "solely because it will eliminate the uncertainty, distraction, burden, and expense of further litigation."

Although the lawsuit was not certified as a class action, the parties have agreed to treat it as such for settlement purposes.

Consumers who purchased eligible products40-count and 80-count packages of Truvia Natural Sweetener (TNS) packets, and any size of TNS spoonable jars and baking blendscould receive as much as $72.00 in cash or 20 vouchers worth $120.00 or as little as $10 in cash and 3 vouchers worth $18.00 depending on their previous purchases.

The settlement agreement is subject to preliminary and final court approval.

Counsel representing plaintiffs, Reese Richman in New York and Halunen & Associates in Minneapolis, Minn., could receive up to $1.59 million in attorney's fees, constituting 30 percent of the total sum of the $5.3 million fund. The named plaintiffs, Molly Martin and Lauren Berry, who alleged Cargill was violating state laws in California and Minnesota, each stand to receive $2,000.00 in incentive awards.

Cargill is among a large group of food and beverage companies that have been sued for false advertising and labeling over the word "natural" or "all natural". Naked Juice, for instance, recently reached a $9 million settlement agreement after it was accused of violating California laws by making references that its products were "All Natural".