SAN FRANCISCO — Post Consumer Brands has agreed to pay approximately $15 million to settle a class action lawsuit alleging it misled consumers by using health and nutrition claims to market high-sugar cereal.
In addition to the payout, Post Consumer Brands has agreed to stop using terms such as “no high-fructose corn syrup,” “less processed,” “wholesome,” “smart” and “nutritious” on its ready-to-eat cereal products where 10% or more of the calories come from sugar.
A federal judge in the Northern District of California granted preliminary approval for the agreement on Feb. 24. A final hearing is scheduled for June 2021.
The suit, which was filed in August 2016, centered around claims used to advertise Post Selects, Great Grains, Honey Bunches of Oats, Shredded Wheat and Good Morenings.
In addition to Post, Battle Creek, Mich.-based Kellogg Co. and Minneapolis-based General Mills, Inc. were targeted in similar lawsuits. In October 2019, Kellogg agreed to pay approximately $30 million to settle its class action lawsuit, while a few months earlier General Mills had its lawsuit dismissed by another judge in the same district.