Kashi Inks $5M Deal To End 'All Natural' False Ad Suit

By Lance Duroni (May 5, 2014, 3:25 PM EDT) -- Kashi Co. has agreed to pay $5 million to reimburse consumers and resolve a class action accusing the company of falsely advertising its food brands as "all natural," according to a settlement filed in California federal court on Friday.

The Kellogg Co. unit also agreed in the deal to alter the labeling and advertising for some its cereals and other products to remove claims like "All Natural" and "Nothing Artificial," but stopped short of admitting any wrongdoing in the case, the plaintiffs said in papers seeking preliminary approval of the settlement.

"Class counsel achieved a substantial benefit for the class and...

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