The Ninth Circuit has taken yet another step to require a more exacting level of judicial scrutiny in consumer class action settlements. In Dennis v. Kellogg Co., No. 11-55674 (July 13, 2012), Judge Trott, writing for the three-judge panel, reversed and vacated a multimillion dollar settlement of a class action brought by consumers allegedly misled by Kellogg’s advertising for its Frosted Mini-Wheats cereal. The rejection of the settlement in Dennis may signal increasing difficulty in obtaining approval of consumer class settlements in courts of the Ninth Circuit.
The class action attacked Kellogg’s ads that claimed that a clinical study had shown that a breakfast of Frosted Mini-Wheats helped improve children’s attentiveness by nearly 20%.
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