Smith v. Keurig Green Mountain, Inc.

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The federal district court for the Northern District of California granted preliminary approval of a class action settlement in a lawsuit alleging that a company that sells single-use coffee pods misrepresented the recyclability of the product. The lawsuit asserted claims under California’s Unfair Competition Law and Consumers Legal Remedies Act, and the Massachusetts Consumer Protection Law, as well as breach of express warranties, misrepresentation, and unjust enrichment. Factual allegations included that plastic waste is thought to be “a significant potential, cause of global climate change” because it releases methane as it degrades. The settlement requires the defendant to make a $10 million payment for payments to class members, settlement administration expenses, incentive awards, and attorneys’ fees and costs. The defendant will also qualify claims of recyclability with the disclaimer “Check Locally – Not Recycled in Many Communities” wherever it represents that pods are recyclable, including on boxes and in advertising. Unclaimed settlement proceeds are to be paid to Ocean Conservancy and Consumer Reports, Inc.