SAN FRANCISCO: An agreed, preliminary settlement in a 'false advertising' claim may well open the floodgates for other consumers to get on board.
The District Court in Oakland has granted preliminary approval of a settlement to resolve a legal spat concerning the company CytoSport and the advertising and marketing claims made on some of their products.
Claire Delacruz had previously filed a suit against CytoSport, who she said had mislead consumers by stating that their Muscle Milk products were incorrectly labeled as 'nutritious' and 'healthy' snacks.
CytoSport vigorously denies these allegations, saying that its products are part of a healthy, balanced diet and that it has complied with applicable laws and regulations.
However, the FDA had also sent a warning letter to CyoSport after they carried out tests on their 'Ready-to-drink' products, and found that they did not comply to physical and legal requirements for the claims they were making.
Today a statement suggests that the District Court in Oakland did not rule in favor of plaintiff or CytoSport. Instead, the parties attorney's agreed to a settlement valued at $5,000,000 to avoid the expense and risks of continuing the lawsuit.
This means that Miss Delacruz and the 'proposed class of consumer' who may have also purchased the same products based on their nutritional and health claims, may have a right to monetary compensation.
As part of the settlement, people who purchased a Muscle Milk Ready-to-Drink or Muscle Milk Bar product at retail anywhere across the US between July 18, 2007 and December 31, 2012 may be members of the 'proposed class' and can claim compensation, unless they decide to opt out of any claim before March of next year.
Under the settlement, qualifying households may be eligible to receive up to $60, depending on the amount of their claim and the total number of claimants.
In addition to this the settlement also requires CytoSport to discontinue the use of certain statements within marketing and labeling of its Muscle Milk products.
HOW TO CLAIM
Claim forms, a list of qualifying products, and other details of the proposed settlement are available by calling (855) 590-8658 or online at the following link
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