Most ridiculous Lawsuits: Kellogg class-action settlement rejected by federal appeals court

The pact, involving allegations that Kellogg made false health claims about Frosted Mini-Wheats, was rejected because a three-judge panel said lawyers’ fees were too high.

© By Maura Dolan, Los Angeles Times

A federal appeals court Friday rejected a class-action settlement involving allegations that Kellogg Co. made false health claims about cereal because the pact gave $2 million to the lawyers who sued and, at most, $15 for each consumer.

A three-judge panel of the U.S. 9th Circuit Court of Appeals said the lawyers’ fees — $2,100 an hour— were too high, while those who bought Kellogg’s Frosted Mini-Wheats got a “paltry” $5 a box for up to three boxes.”Not even the most highly sought after attorneys charge such rates to their clients,” Judge Stephen S. Trott wrote for the unanimous panel.

The suit was brought by San Diego lawyer Tim G. Blood, who was sharing the award with five law firms. Blood said the hourly fees cited by the court were inaccurate and did not include two years of work by five law firms.

The suit accused Kellogg of falsely advertising that its Frosted Mini-Wheats cereal was scientifically proven to improve children’s cognitive functions ...

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