Settlement Reached in Benecol Spread Class Action Lawsuit

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Last week, a class action lawsuit accusing Johnson & Johnson and McNeil Nutritionals LLC of falsely advertising their Benecol spread as not containing “trans fat” was reportedly settled.

Lead plaintiff Robert Reid alleged in his 2011 class action lawsuit that the butter and margarine substitute was advertised that it is “proven to reduce cholesterol,” has “no trans fat” and “no trans fatty acids,” and contains “0.85g of plant stanol esters in each serving.”

Reid alleged in the Benecol class action lawsuit that the amount of plant stanol esters, a group of chemical compounds believed to reduce the level of low-density lipoprotein cholesterol in blood when ingested under certain circumstances, is too low in the product to make an FDA-approved cholesterol claim. He also alleged that the company cannot advertise Benecol as not having trans fats because it contains ingredients the FDA classifies as the harmful substance.

U.S. District Judge M. James Lorenz dismissed the Benecol class action lawsuit in September of 2012, finding that a “reasonable consumer” would not be deceived by Benecol’s “no trans fat” claim since the ingredient list shows the spread contains partially hydrogenated vegetable oil, which contains trans fat. He also pointed out that the FDA had issued letters loosening restrictions.

In a turn of events, the 9th U.S. Circuit Court of Appeals reversed the lower court dismissal. The three-judge panel said that Johnson & Johnson had misrepresented the amount of trans fats in Benecol. “Reid’s basic contention in this case is that Benecol is improperly being marketed and sold to consumers as health food. At this early stage of the proceedings, we cannot say whether he is right or wrong,” the judges wrote. “It is clear, however, that Benecol’s label prominently states that Benecol contains ‘No Trans Fat.’ That statement is not true.”

The appellate court’s opinion in the class action lawsuit went on to point out that Benecol contains “a relatively small amount” of trans fat per serving and the FDA precludes the product from using the “No Trans Fat” label. “Despite this finding, McNeil made such a claim,” says the opinion. “Given that the FDA has indicated in warning letters that claims like ‘No Trans Fat’ are not authorized, McNeil cannot shield itself from liability with the FDA’s regulations,” concludes the opinion.

On Thursday, the Benecol class action lawsuit was dismissed in California federal court. According to court documents, the settlement was announced during a telephone case management conference before U.S. Magistrate Judge Barbara L. Major on June 4. The terms of the settlement have not been disclosed.

More information about the Benecol class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

Reid is represented by Ronald Marron and Beatrice Skye Resendes of the Law Offices of Ronald A. Marron APLC, Gregory S. Weston and Melanie Rae Persinger of the Weston Firm, and Jack Fitzgerald IV of The Law Office of Jack Fitzgerald PC.

The Benecol Trans Fat Mislabeling Class Action Lawsuit is Reid v. Johnson & Johnson, et al., Case No. 3:11-cv-01310, in the U.S. District Court for the Southern District of California.