Whose Settlement is Better For You: Vitaminwater or Red Bull?

October 21st, 2014

Vitaminwater and Red Bull were both sued for falsely marketing their beverages as providing specific health/functional benefits, which allegedly induced consumers to purchase these drinks at a premium price. Now both companies have negotiated settlements (vitaminwater, Red Bull) of these class action cases and are awaiting final approval of the settlements by courts in separate jurisdictions. But this is where the similarities end. As the chart below makes clear the settlement terms couldn’t be more divergent.

vitaminwater vs red bull            *cy pres

For more information about the Vitaminwater proposed settlement and TINA.org’s opposition to it click here.

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(French for “as near as possible”): a legal doctrine that requires a judge to consider the manner in which unclaimed settlement funds in class action lawsuits are distributed. Under this doctrine, the remaining funds must be distributed for the indirect benefit of the class instead of benefiting the defendant.

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About the Author

Bonnie, executive director of TINA.org, is an attorney and mother of three. Her commitment to educating the public about deceptive marketing stems from her belief that education is the only viable way to effectively eradicate the market for false ads.

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