Facts

Consumers in eight states (Alabama, California, Illinois, New Jersey, New York, North Carolina, South Carolina, and Tennessee) filed suit against defendants Strum Foods Inc. and Treehouse Foods Inc. in relation to its labeling and advertising of its Grove Square instant coffee products.

PLAINTIFFS' CONTENTIONS: Plaintiffs alleged that defendants misled customers with the labeling and advertising of its Grove Square instant coffee products by suggesting that the products contained premium coffee. Plaintiffs contended that defendants violated various consumer protection and unjust enrichment laws by purposely mislabeling their Grove Square Coffee Light Roast, Grove Square Coffee Medium Roast, and Grove Square Coffee Dark Roast as containing premium ground coffee when the products actually contained more than 96 percent instant coffee. Plaintiffs also contended that defendants intentionally sold the products to a targeted consumer, the Keurig user, and knowingly provided a type of product that a Keurig user would not expect to use in their brewer.

DEFENDANTS' CONTENTIONS: Defendants denied the contentions.

Result

The parties entered into a $25 million settlement agreement.

Other Information

JUDGE: Hon. Nancy J. Rosenstengel.