Diamond Strikes $2.6M Deal To End Walnut Label Suit

Law360, New York (January 3, 2012, 1:25 PM EST) -- Snack company Diamond Foods Inc. has agreed to pay $2.6 million to settle a false advertising class action over claims that its walnuts could improve heart health, according to the plaintiff's bid Friday to approve the deal.

Under the proposed settlement filed in California federal court, Diamond would reimburse consumers for the cost of walnuts they bought in the U.S. since March 2006 that were advertised as being beneficial to heart health because of their omega-3 fatty acids.

The settlement comes after U.S. District Judge Jeffrey...
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