PepsiCo is facing a possible payout of US$1.26 billion (A$1.4b) after not responding to a lawsuit earlier this year. Two men, who claim PepsiCo took their idea for bottled water, won the judgment after PepsiCo failed to turn up to court. PepsiCo said they were unaware of the lawsuit until after the default ruling had been announced due to a secretary failing to act on the court documents. As a result they are hopeful of an opportunity to fight the ruling, an opportunity they are likely - though not... ...Read more »

Cadbury is facing a lawsuit from one of their shareholders in the wake of their dismissive approach to the informal offer from Kraft. Steward International Enhanced Index Fund, a US mutual fund holding 6,720 Cadbury shares, contends that the Cadbury Board has not acted in the best interests of shareholders by failing to “properly consider” the A$19.6b offer. “Cadbury shareholders stand to lose out massively if the Cadbury board continues to refuse to negotiate a transaction with... ...Read more »

The Dannon Company, American-based subsidiary of French dairy group Danone, has announced the US$35 million (A$40.6m) settlement of a class action lawsuit regarding alleged misleading advertising for its Activia and DanActive products. Under the settlement, Dannon will make certain changes and enhancements to the labeling and marketing of Activia and DanActive to increase the visibility of the scientific names of the unique strains of probiotics that are in each of these products. Dannon also agreed... ...Read more »

Nestle has insisted that it will “vigorously” resist claims from Weight Watchers International that the Swiss food giant has infringed trademark rights.Weight Watchers filed a lawsuit in the US yesterday (17 September), alleging that Nestle illegally used its name and ‘points’ system to promote its Skinny Cow low-fat ice cream and Stouffer’s Lean Cuisine frozen meals. The US-based weight management company said that it is seeking a restitution of “improper”... ...Read more »

PepsiCo announced overnight that it would sue Pepsi Bottling Group (PBG) and some of its directors. The news comes in the wake of PBG, Pepsi’s largest bottler, declining a takeover proposal from PepsiCo. The suit alleges that the defendants intentionally failed to provide notice of a recent PBG Board meeting to the PBG directors affiliated with PepsiCo. At that meeting, the directors in attendance claim to have adopted a “poison pill”, implemented certain new executive compensation... ...Read more »

A class action lawsuit has been filed by two pension funds against the Pepsi Bottling Group alleging breaches of duty arising out of their attempt to sell Pepsi Bottling Group to PepsiCo. The surprise offer by PepsiCo for their two primary US bottlers - Pepsi Bottling and PepsiAmerica - was announced last week in an attempt to gain greater control over distribution. The move comes a decade after PepsiCo sought to separate itself from its bottlers, believing it would help the company focus on soft-drink... ...Read more »

PepsiCo has filed a lawsuit against major competitor The Coca-Cola Company, alleging false advertising that unfairly tarnishes their Gatorade brand. The owners of the world’s largest selling sports drink have taking umbrage with a campaign in the US, which implies that Coca Cola’s Powerade ION4 is the more “complete” sports beverage because it has magnesium and calcium. The campaign has showcased photos of Gatorade bottles cut in half beneath slogans such as “Don’t... ...Read more »

A lawsuit regarding Procter & Gamble patents for packaging of their Folgers Coffee brand has been settled amicably with Kraft. P&G filed a lawsuit against Kraft for alleged infringement of packaging patents by Kraft’s Maxwell House. P&G suggest that the packaging of Folgers gives a competitive advantage and claimed the innovation of their containers had helped grow the Folgers brand. “We are delighted by the terms of this settlement and will not hesitate to do what... ...Read more »

The Coca-Cola Company has been served notice of a class action lawsuit from an American consumer group and a San Fransisco customer amid accusations of “deceptive and unsubstantiated claims” on its glaceau vitaminwater line of beverages. The Center for Science in the Public Interest (CSPI) argues that The Coca-Cola Company “makes a wide range of dramatic claims, including that its drinks variously reduce the risk of chronic disease, reduce the risk of eye disease, promote healthy... ...Read more »

Wal-Mart Stores, the world’s largest retailer, has announced the settlement of 63 wage and hour class action lawsuits that have been pending against the company for several years.Each of the settlements is subject to approval by the trial court, and the total amount to be paid will depend on the amount of claims that are submitted by class members. Under the agreements, the total will be at least $352 million, but no more than $640 million. Also, as part of the settlements, Wal-Mart has agreed... ...Read more »