Ghirardelli to Settle White Chocolate False Ad Class Action Lawsuit

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Plaintiffs have filed a motion for preliminary approval of a class action settlement that would resolve allegations Ghirardelli Chocolate Company falsely advertised some of its products in a manner that could mislead consumers into believing they were white chocolate.

According to the court filing, Ghirardelli has agreed to pay $5.25 million to settle the false advertising class action lawsuit. If the Ghirardelli class action settlement is approved, Class Members who make valid claims will be eligible to receive $1.50 per purchase of Ghirardelli Classic White Chips and 75 cents per purchase of certain Ghirardelli products advertised as “All Natural.”

Under the terms of the proposed Ghirardelli class action settlement, there will be no cap on the number of claims a Class Member can submit. Class Members who do not submit proof of purchase will be limited to $24, but there is no cap on the total amount Class Members whose claimed purchases are corroborated by proof of purchase will be eligible to receive. However, if the total value of claims exceeds the amount available in the class action settlement fund, the amounts paid to each Class Member may be reduced on a pro rata basis.

Ghirardelli has also agreed to make labeling changes to the products challenged by the false advertising class action lawsuit. Specifically, it has agreed not to use the phrase “Classic White” with respect to its White Chips (except as part of the phrase “Classic White Chips”). It has also agreed not to use the phrases “baking chocolate” or “chocolate indulgence” on its White Chips packaging, and to refrain from using “All Natural” on any of its products.

The proposed Class includes all persons who have purchased White Chips and approximately 72 other Ghirardelli products labeled as “All Natural” in the United States since Aug. 17, 2008.

The Ghirardelli class action lawsuit was initially filed by plaintiff Scott Miller in August 2012. He claims Ghirardelli advertised, marketed and packaged its White Chips and other products in such a way that could lead consumers to believe they contained white chocolate. He alleges Ghirardelli engaged in false advertising, unfair trade practices and fraud in connection to the marketing and sale of the products.

In October 2013, Steve Leyton filed a motion to intervene in Miller’s Ghirardelli class action lawsuit and add claims that the chocolate company falsely labeled its White Chips and other products as “All Natural.” He alleges these “All Natural” products actually contain genetically modified, hormone-treated and/or chemically extracted ingredients.

Leyton was permitted to join Miller’s class action lawsuit regarding the White Chip claims, but his attempt to bring the “All Natural” claims was denied. Leyton expressed his intent to file a separate class action lawsuit over the “All Natural” claims, but agreed to stay the litigation while the parties engaged in mediation. The plaintiffs have asked the court to grant leave to file an amended Ghirardelli class action lawsuit that includes Leyton’s “All Natural” claims.

Ghirardelli denies the allegations but agreed to settle the false advertising class action lawsuit to avoid further expense and uncertainty of ongoing litigation.

More information about the Ghirardelli 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.

The plaintiffs are represented by Adam J. Gutride, Seth A. Safier and Kristen G. Simplicio of Gutride Safier LLP.

The Ghirardelli False Advertising Class Action Lawsuit is Scott Miller, et al. v. Ghirardelli Chocolate Company, Case No. 3:12-cv-04936, in the U.S. District Court for the Northern District of California.

UPDATE 1: The Ghirardelli false advertising class action settlement was preliminarily approved on Oct. 2, 2014. 

UPDATE 2: Instructions on how to file a claim for the Ghirardelli class action settlement are now available! Click here or visit www.WhiteChipsSettlement.com for details.

UPDATE 3:  A federal judge granted final approval to the Ghirardelli chocolate class action settlement on Feb. 20, 2015. The deadline to file a claim is 30 days after Final Approval. 

UPDATE 4: On Feb. 15, 2016, according to the Ghirardelli settlement website, Class Members who filed a valid and timely claim for this settlement should receive a check on or before March 19, 2016.

UPDATE 5: On Mar. 15, 2016, Top Class Actions readers started receiving checks worth as much as $33 from the Ghirardelli chocolate class action lawsuit settlement.