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$9.4M Settlement Reached in Hain Organic Consumer Fraud Class Action Lawsuit

This is a settlement for the lawsuit.

Los Angeles, CA: A $7.5 million settlement has been agreed potentially ending a consumer fraud class action lawsuit filed against Hain Celestial Group Inc over allegations it falsely labeled products as organic. In addition to the cash payout, the company has agreed to provide up to $1.85 million in coupons.

The lawsuit, filed by lead plaintiffs Rosminah Brown and Eric Lohela, claimed that the products failed to meet even minimum state requirements for being "organic."Specifically, the organic components comprised less than 70 percent of the products' ingredients, as required by the California Organic Products Act.

"The settlement provides substantial monetary relief for many thousands of purchasers of the challenged products who allegedly paid a premium over comparable personal care products that did not purport to be organic ... [and] compensates class members for a significant portion of their alleged damages,"the plaintiffs stated. "The settlement accomplishes this while avoiding both the uncertainty and the delay that would be associated with further litigation."

According to the reported terms of the settlement, any class member who submits a valid claims form but does not have a receipt will be entitled to receive a cash refund equal to 50 percent of their Hain purchase up to $50 or a combination of cash and coupons for their claims. Those with a receipt for their purchases will receive a full refund.

The settlement is pending final court approval. If approved, all claims except one will be resolved. The remaining claim is concerns the water used in certain products – which Hain asserts is organic and which the plaintiffs state is not. The settlement hearing is scheduled for October 8, 2015. The case is Rosminah Brown et al. v. Hain Celestial Group Inc., case number 3:11-cv-03082, in the U.S. District Court for the Northern District of California.

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Published on Sep-24-15


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