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ConAgra and Alexia Settle Alexia Potato Products Consumer Fraud Lawsuit for a Proposed $2.5M

New York, NY: A preliminary settlement has been reached in a consumer fraud class action lawsuit pending against ConAGra Foods, Inc, and its subsidiary Alexia Food Inc. The lawsuit alleged that the companies engaged in misleading advertising and false claims on the packaging of its potato products, specifically, that the potato products were “natural” even though they contain an artificial chemical to prevent discoloration.

Specifically, the plaintiffs allege Alexia cannot claim its potato products are “all natural” when they contain the chemical disodium dihydrogen pyrophosphate (DDP). DDP, a chemical preservative that prevents the company’s potato products from turning brown, is registered with the Chemical Abstracts Service.

The proposed settlement, approved by US district court judge Phyllis Hamilton, would see ConAgra create a settlement fund and establish a separate voucher fund worth $700,000. ConAgra has agreed to pay $2.5 million into the cash settlement fund, and to reformulate the Alexia potato products so that the “all natural” label will be accurate.

Eligible class members include customers who had purchased the following Alexia potato products since December 6, 2007: “Sauté Reds,” “Mashed Potatoes Yukon Gold Potatoes & Sea Salt,” “Mashed Potatoes Red Potatoes with Garlic & Parmesan,” “Waffle Fries,” “Harvest Sauté,” “Italian Sauté,” “Sauté Sweets” or “Potato Bites.”

The final settlement hearing for the ConAgra consumer fraud lawsuit, entitled In Re Alexia Foods Inc. Litigation, Case No. 4:11-cv-06119-PJH, in the U.S. District Court for the Northern District of California, is scheduled for November 27.

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Last updated on Sep-2-13

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