Coca-Cola and defendants related to the Fairlife Milk brand will pay $21 million to end class action lawsuits from consumers who say they were misled into overpaying for Fairlife milk, an accusation made in the wake of animal rights activists reporting mistreatment of dairy cows.
In April, nearly three years into the litigation, U.S. District Judge Robert Dow Jr. granted preliminary approval to the settlement. On July 21, plaintiffs’ attorneys filed motions in support of final approval as well as their own legal fees.
According to those motions, defendants include the Coca-Cola Company, Fairlife, Far Oaks Farms, Select Milk Producers and Mike and Sue McCloskey, the Indiana couple behind the Fairlife dairy operations.
Amy Keller
| Dicello Levitt Gutzler
The motions claimed class counsels’ “investigations into animal welfare have been ongoing for years” but said a breakthrough came in June 2019 when Animal Recovery Mission released video purportedly showing abuse of dairy cows at Fair Oaks, which it called Fairlife’s “flagship” site. The class action allegations essentially accuse the companies of charging a premium for their products by promoting humane treatment of cows, when the reality was “severe, inhumane treatment and abuse.”
The motion for approval said eight putative class actions were transferred to federal court in Chicago, where Judge Dow named Michael Reese, of Reese LLP, in New York, Los Angeles and Minneapolis, co-lead interim counsel, along with Amy Keller, of DiCello Levitt Gutzler, in Chicago, and Melissa Weiner, of the Minneapolis firm of Pearson, Simon & Wasrhaw. The three firms filed a consolidated class action in June 2020 and a separate complaint on behalf of new plaintiffs.
Under the terms of the deal, the firms would split legal fees of $7 million and $95,000 in expenses. A total of 19 named class representatives are in line for $3,500 service payments.
Recovery for class members used the belief Fairlife priced its products 25% above market rate. “based upon the experience of class counsel and compared to other products available on the market." Claimants can get up to $20 for claims without proof of purchase and $80 if they can prove they bought Fairlife milk. Class members who file both types of claims could get $100. Payouts will be prorated depending on the number of valid claims.
In addition to payouts, “class counsel negotiated incredibly hard-fought injunctive relief that would create a monitoring and compliance program, aimed at ensuring their cows receive humane treatment,” according to the motion. “This is significant relief — the value of which is not at all included in the settlement fund.”
The motions said since Dow granted preliminary approval, no one has objected to the settlement and only five unaudited exclusion requests are on file. The opt-out and objection deadline is Aug. 25, and a fairness hearing is set for Sept. 28.
Class counsel said it attempted mediation discussions concerning animal welfare before consolidation of the putative class lawsuits.
Coca-Cola has been represented by attorneys Jeffrey S. Cashdan, John C. Toro and Rachael M. Trummel, of the firm of King & Spalding, of Atlanta and Chicago.
Fairlife has been represented by attorneys Mark S. Mester, Johanna M. Spellman and Robert C. Collins III, of Latham & Watkins, of Chicago.
And Select Milk Producers and the McCloskeys were represented by attorneys Timothy B. Hardwicke and Brian P. Borchard, of Goodsmith, Gregg & Unruh, of Chicago.