Facts

Plaintiff Community Science Institute filed a lawsuit against defendant Sequel Naturals ULC for violating California's Safe Drinking Water and Toxic Enforcement Act of 1986.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant knowingly and intentionally exposed consumers to lead and cadmium which were chemicals known to cause developmental toxicity, male and female reproductive toxicity and cancer. Plaintiff contended that defendant also marketed, sold and distributed various products to consumers that were exposed to lead and cadmium without a Proposition 65 warning.

DEFENDANT'S CONTENTIONS: Defendant denied plaintiff's contentions. Defendant also contended that alleged lead and cadmium in the products defendant sold were all natural because they resulted from geological and plant processes.

Result

The parties agreed to settle the case for $362,500, which was composed of $164,281.51 in civil penalties. Plaintiff will remit $162,281.54 to the Office of Environmental Health Hazard Assessment (OEHHA) for deposit in the Safe Drinking Water and Toxic Enforcement Fund pursuant to the California Health and Safety Code Section 25249.12(C). Plaintiff will then retain the remaining $40,642.86. In addition, $121,928.57 will considered as additional settlement payment which will be distributed as follows: $8,414.28 to Key Sciences LLC for testing of products of Proposition 65 listed chemicals, $32,514.29 to Greenaction for Health & Environmental Justice for community education about Proposition 65 listed chemicals. Moreover, under the settlement agreement, defendant was prohibited from manufacturing for sale in, distributing into, or directly selling into California any Covered Product unless the products result in an exposure level below the safe harbor lead and cadmium levels, or provides a warning that meets Proposition 65 safe harbor warning regulations.