Kellogg to Pay $10 Million to Settle Cereal Suit

BATTLE CREEK, Mich.Kellogg Company will pay $10.5 million to settle a class action lawsuit alleging the cereal maker falsely advertised nine of its Frosted Mini-Wheats cereals improved kids attentiveness, memory, and other cognitive functions to a degree not supported by clinical evidence.

Under the terms of the settlement, Kelloggs will pay consumers $2.75 million ($5 per box of purchased product, up to $15 per consumer) and donate $5.5 million to charities to feed underserved communities.

Kellogg also agreed to refrain from using any assertion to the effect that eating a bowl of Kelloggs Frosted Mini-Wheats cereal for breakfast is clinically shown to improve attentiveness by nearly 20%" for a period of three years. Kellogg may make claims about the impact on attentiveness from eating the product, as long as it limits and qualifies its claims.

Click here to view the settlement agreement.