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Nutella class action settlement far worse than being reported

| 3 Comments


In the settlement of the questionable Nutella litigation, the attorneys stand to collect approximately $5 million, while class members will eventually end up with less than $2 million once deductions are made from the settlement funds for the cost of notice and administration—assuming that even 400,000 claims are made. The attorneys justify this by claiming that "injunctive relief" is worth $10 million to the class. But the injunctive relief consists of putting information that already existed on the back of the label on the front of the label, minor changes to the Nutella website, and changing the phrase "An example of a tasty yet balanced breakfast" into "Turn a balanced breakfast into a tasty one." Class counsel also justifies this fee from the work entailed in reviewing 53,000 documents and taking two depositions. [Jackson; Jackson; Lammi]

3 Comments

I'm a plaintiffs' lawyer. And I agree with you. We do need some sort of private mechanism to protect consumers. But the way that it is working now is not working.

If this is all true, it's pretty nutty. The fee: $100 per document reviewed? A fairly balanced fee would be "a glass of skim milk, orange juice and Nutella on whole wheat bread." That would be more tasty than the distasteful fee in the works.

Your honor, this is the most egregious case of false statments I've seen since my lawsuit against the makers of "The Neverending Story".

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Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

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