Kraft Heinz must face Mac & Cheese lawsuit, judge rules
By Jonathan Stempel
Nov 14 (Reuters) -A federal judge said Kraft Heinz KHC.O must face a proposed nationwide class action alleging that it defrauded consumers by claiming its Kraft macaroni and cheese, one of its best-known products, contains no artificial preservatives.
In a decision on Wednesday, U.S. District Judge Mary Rowland said the Illinois, California and New York consumers leading the lawsuit plausibly alleged that Kraft Mac & Cheese contained a synthetic form of citric acid that differed from the natural variety, and also contained sodium phosphates.
The Chicago-based judge said the plaintiffs specifically alleged that the ingredients functioned as preservatives, making Kraft Heinz's claim of "No Artificial Flavors, Preservatives or Dyes" on labels false, and cited academic studies and U.S. Food and Drug Administration guidance to support their case.
"These allegations are enough to withstand a motion to dismiss," she wrote.
Rowland agreed with Kraft Heinz that the plaintiffs lacked standing to demand new labels because they are now aware of its alleged deceptive practices and face no risk of future harm.
In seeking a dismissal, Kraft Heinz said there were no factual allegations that it used artificial preservatives in its "iconic" Mac & Cheese, or that reasonable consumers would view its ingredients as artificial.
Kraft Heinz and its lawyers did not immediately respond to requests for comment on Thursday. Lawyers for the plaintiffs did not immediately respond to similar requests.
The plaintiffs are seeking damages for fraud, unjust enrichment, and violations of state consumer protection laws.
Their lawsuit is one of many challenging the accuracy or precision of food labels.
In July 2023, a Miami federal judge dismissed a lawsuit accusing Kraft Heinz of understating how long it took to prepare microwaveable Velveeta macaroni and cheese.
Kraft Heinz is based in Chicago and Pittsburgh. Berkshire Hathaway BRKa.N owns 26.9% of its stock.
The case is Hayes et al v. Kraft Heinz Co, U.S. District Court, Northern District of Illinois, No. 23-16596.
Reporting by Jonathan Stempel in New York; Editing by Rod Nickel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
