Facts

NextFoods Inc. sells a line of fruit juice beverages: GoodBelly Probiotic JuiceDrinks. Evlyn Andrade-Heymsfield filed a class action suit in USDC Southern against NextFoods for purported violations of consumer protection and other laws.

PLAINTIFF'S CONTENTIONS: According to plaintiff, defendant's labeling of the JuiceDrinks--that it promotes "digestive health" thus promoting "overall health" and "overall wellness"--was misleading and false, omitting material facts regarding the harmful effects of the elevated sugar on both digestive and overall health. The sugar content of the drinks directly harmed digestive health. Moreover, the harmful effects of the elevated sugar content boosts an inflammatory response thereby increasing the risk for metabolic syndrome, obesity, and Type 2 Diabetes.

DEFENDANT'S CONTENTIONS: Defendant denied that the labeling of the contested product violated any law. Moreover, defendant challenged the applicability of the studies plaintiff used as the basis for her argument. In response to pleading motions, the Court dismissed plaintiff's attempt at injunctive relief.

Result

Though denying any wrongdoing, defendant agreed to establish a $1.25 million settlement fund. Moreover, despite denying that its labeling was unlawful, defendant also agreed that it would make certain labeling changes for a specified period of time.