Consumer Advocacy Group Inc. v. Five Below Inc.; 1616 Holdings Inc. fka Five Below Merchandising Inc., and Does 1-10
Published: Sep. 9, 2022 | Result Date: Jul. 14, 2022 | Filing Date: Jun. 17, 2020 |Case number: 20STCV22881 Settlement – $260,000
Judge
Court
Los Angeles County Superior Court
Attorneys
Plaintiff
Reuben Yeroushalmi
(Yeroushalmi & Yeroushalmi)
Shannon E. Royster
(Yeroushalmi & Yeroushalmi)
Defendant
Sonja Anne Inglin
(Cermak & Inglin, LLP)
Facts
The Consumer Advocacy Group (CAG) is an organization qualified to do business in California that seeks to warn consumers of potential product harms. Di (2-ethylhexyl) Phthalate (DEHP), also known as Diethyl Hexyl Phthalate and Bis (2-ethylhexyl) Phthalate, has been listed by the California under Proposition 65 as a chemical known to cause cancer and birth defects or other reproductive harm. Di-n-butyl Phthalate (DBP) has also been listed as a chemical known to cause developmental and reproductive toxicity in California. On June 17, 2020, CAG filed a complaint for civil penalties and injunctive relief against defendants, several Pennsylvania corporations with more than 10 employees, alleging violations of Proposition 65 for failure to give clear and reasonable warnings of alleged exposure to DBP and DEHP.
Contentions
PLAINTIFF'S CONTENTIONS: Plaintiff alleged that the 1616 private label sandals manufactured and sold in California by defendants contained dangerous levels of DEHP and DBP without providing clear and reasonable warnings of such exposures. Moreover, plaintiff argued that defendants knew or should have known that DBP had been identified by the State of California as a chemical known to cause developmental issues and reproductive toxicity, and was subject to the requirements under Proposition 65. Finally, they contended that the knowing violation of Proposition 65 was ongoing and continuous and would not cease unless judicial action was taken.
DEFENDANTS' CONTENTIONS: Defendants denied the material allegation contained in the notices and complaint and maintained that it had not violated Proposition 65, and that all products that it had sold or distributed in California, including the 1616 private label sandals, have been and are in compliance with all laws.
Result
Defendants agreed to pay a total of $260,000, with $45,720 as a civil penalty, and provide a clear and reasonable warning for all future covered products.
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