Kellogg's Must Rework $31.5M Sugary Cereal False-Ad Deal

Law360 (February 21, 2020, 2:41 PM EST) -- A California federal judge has rejected a proposed $31.5 million class action settlement between Kellogg's and consumers who claim it falsely labeled sugar-loaded cereals as "healthy," finding the deal contains several troubling provisions and outright legal errors.

In a 17-page opinion filed Thursday, U.S. District Judge Lucy H. Koh said Kellogg's and the consumers had blatantly ignored previous warnings she'd given about trying to certify an overly broad class; included provisions that basically allow Kellogg's to reclaim millions from the settlement if consumers don't act immediately; and submitted proposed notice forms riddled with fundamental errors, among other things.

"Any of these...

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