American cereal company Post Foods, LLC will pay out $15 million to resolve a class action lawsuit alleging its products contain added sugar.
The lead plaintiffs, Stephen Hadley and Debbie Krommenhock, filed the class action lawsuit against Post Foods in August 2016.
The class action lawsuit asserts that the company has falsely advertised their cereal products as healthy despite containing too much added sugar.
It adds that consumption of an excessive amount of sugar can cause a significant health risk, including diabetes, heart disease, liver disease.
Post Foods has not admitted any of the allegations made against them.
The company believes that they did not do any wrongdoings. The company also declares that its cereals are healthy.
However, they have agreed to pay a settlement amounting to $15 million to resolve the lawsuit and prevent future litigation.
According to the settlement terms, variants of the following cereals made by Post Foods are covered:
- Golden Crisp
- Great Grains
- Honey Bunches of Oats
- Honey Bunches of Oats Granola
- Post Bran Flakes
- Post-Raisin Bran
- Selects (already discontinued)
- Shredded Wheat (already discontinued)
- Waffle Crisp
The settlement terms also state that eligible class members would need to submit a valid claim form to get their compensation.
The average estimated amount that each eligible class member will get is $14.28.
However, this amount may still change depending on the actual number of class members who will submit a valid form and the class member’s purchase history.
Aside from compensating affected individuals, Post Foods has also agreed to not use some words in the covered products label until 2022.
According to the settlement terms, individuals living in the United States who bought any of the covered products within the class period are considered class members.
The agreed-upon class period was from August 29, 2012, to November 2, 2020.
The settlement covers only purchases made for personal use.
Products that were bought for distribution or resale purposes are not covered.
Class members who could submit a valid claim form with proof of purchase can be compensated for all the products they have bought.
Accepted proof of purchase includes purchase orders, receipts, invoices, or any other document that states when the product was purchased, what products were bought and the number of products purchased.
Meanwhile, class members who would only submit a claim form but do not have proof of purchase will have a limit on the transactions they can claim.
The determined limit was equal to the average consumption of cereal in a month or four boxes per product per month.
Class members can receive their payout through Venmo, PayPal, or prepaid MasterCard.
The deadline for submitting claim forms is on May 19, 2021. Class members can submit the claim forms through mail or online.
The deadline for filing objections or asking to be excluded is on May 19, 2021.
The fairness hearing is scheduled for June 23, 2021.
Editor’s Note on Post Foods Added Sugar Settlement For $15 Million:
This article is published to inform you of the latest settlement Post Foods will pay to resolve added sugar claims.
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