Organic Dairy Pays $7.5 Million to Settle Lawsuit

BOULDER, Colo.Aurora Organic Dairy has announced that it has reached an agreement to settle all claims in the consolidated class action lawsuits pending before the U.S. Federal Court for the Eastern District of Missouri. The Eighth Circuit Court of Appeals and the district court confirmed that Auroras milk was at all times properly labeled and sold as organic, and that Auroras milk has been certified as organic by a USDA-accredited certifying agent since 2004. As such, the only remaining action in this lawsuit, which was originally filed in 2007, concerned marketing claims made by Aurora and its customers.

While the courts confirmed Auroras organic certifications have always been valid and the company is confident it would prevail in trial on the remaining marketing claims, Aurora reached the settlement to avoid the cost and distraction of protracted litigation. According to the agreement, the company will pay a one-time amount of $7.5 million to cover all settlement class costs, including class claims, attorneys fees for up to 60 or more plaintiffs lawyers, and the costs of notice and administration. The company also will continue, for three years, certain existing farming practices at its Platteville, Colo. dairy. The settlement agreement, which is subject to court approval, dismisses all claims brought against Aurora and its retail customers, and contains no admission of wrongdoing by any of the parties.