Facts

Center for Environmental Health (CEH) is a non-profit corporation dedicated to protecting the public from environmental health hazards and toxic exposures. CEH is based in Oakland, California. Keurig Dr Pepper Inc. (Keurig) is a multi-billion dollar international beverage company that produces, markets and sells Penafiel brand Mineral Water. Penafiel Mineral Water is a carbonated mineral water that is primarily sold in sweetened and flavored formats such as Limonada (Limeade) and Naranjada (Orangeade).

On July 12, 2019, CEH filed a complaint in Alameda County Superior Court entitled Center for Environmental Health v. Whole Foods Market California, Inc., et al., for civil penalties and injunctive relief pursuant to the provisions of Cal. Health & Safety Code ("Health & Safety Code") §25249.5, et seq. ("Proposition 65"). On September 12, 2019, CEH filed the First Amended Complaint (the "Complaint") in the Action naming Keurig as a party.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that Penafiel Mineral water sold by Keurig was contaminated with arsenic, a known carcinogen and reproductive toxicant. Plaintiff further alleged that by selling Penafiel Mineral Water, Keurig knowingly and intentionally exposed consumers to the toxic chemical arsenic and further that Keurig failed to disclose or warn consumers about the arsenic; that failing to disclose the contamination and placing the water into the stream of commerce was a violation of Proposition 65; and that it was entitled to injunctive relief and to recover its costs and fees.

DEFENDANTS' CONTENTIONS: Defendants denied any wrongdoing or liability and all the plaintiff's material allegations.

Result

The parties reached a settlement agreement wherein the defendants agreed to reformulate Penafiel Mineral Water to remove arsenic by installing a state of the art filtration system to filter arsenic out of Penafiel Mineral Water. Keurig also agree to pay $625,000 in penalties, additional settlement payments and attorneys' fees and costs.