9th Circ. Shoots Down $10.6M Kellogg False Ad Settlement

Law360, New York (July 16, 2012, 8:30 PM EDT) -- The Ninth Circuit on Friday rejected the $10.6 million settlement of a putative class action accusing Kellogg Co. of falsely advertising that its Frosted Mini-Wheats cereal helped children pay attention, ruling that a suggested charitable donation had no connection to the suit's claims and that the attorneys' fees were excessive.

In reversing the lower court's approval of the pact and vacating the agreement, a three-judge panel concluded that the settlement — which would give $2.75 million to a class of consumers who bought Mini-Wheats, $5.5 million...
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