Elliot Zeisel v. Diamond Foods, Inc.,
Case No. 3:10-cv-01192-JSW
(U.S. District Court for the Northern District of California)
California walnut company Diamond Foods, Inc. (NASDAQ:DMND) paid $2.8 million to settle a class action lawsuit accusing it of false advertising. The lawsuit claimed that Diamond misbranded its walnut products by making false and misleading statements on package labels and the company’s website relating to the health benefits of walnut consumption. Diamond disputed that the language it used to promote its walnuts was unlawful, but agreed to discontinue the “heart health” claims on its packaging and similar claims on its website. This was one of only a few nationwide litigation classes certified for food mislabeling.
As a part of the Diamond Foods walnut class action settlement, the company agreed to pay consumers $8.25 for each 3-pound bag of Diamond of California walnuts purchased at Sam’s Club and $3.25 for any other Diamond of California walnut product purchased between March 22, 2006 and January 30, 2012. A consumer was able to claim up to 24 total bags.
IMPORTANT DATES AND DEADLINES HAVE ALL PASSED.
The Honorable Jeffrey S. White, U.S. District Judge for the Northern District of California approved the settlement October 16, 2012 (Order Approving Settlement).