Anheuser-Busch Agrees to Uncapped Deal In Beck's Beer Deceptive Labeling Suit
I agree with requiring the "Brewed in U.S.A." But since we all can brew a very close Beck's clone, I am not convinced of consumer damages
Beverages
Anheuser-Busch Agrees to Uncapped Deal
In Beck's Beer Deceptive Labeling Suit
Beer
By Julie A. Steinberg
June 23 Anheuser-Busch's agreement to an uncapped settlement could give partial refunds to Beck's Pilsner purchasers who allege they were misled into thinking the U.S.-produced beer was still brewed in Germany (Marty v. Anheuser-Busch Cos., S.D. Fla., No. 13-23656, motion filed 6/18/15).
The deal places no cap on the total amount that Anheuser-Busch Cos. may become obligated to pay, but it sets per-household payout limits, according to the plaintiffs' motion for preliminary approval of the class action settlement and certification of the settlement class.
The proposed class settlement also includes packaging changes, including a statement that the beer is produced in the U.S., the June 18 motion in the U.S. District Court for the Southern District of Florida says.
Additionally, it provides for attorneys' fees of up to $3.5 million. It also includes awards of up to $5,000 each for named plaintiffs Francisco Rene Marty, who filed the initial suit, and Seth Goldman and Fernando Marquet, who were added later.
Marty sued Anheuser-Busch in 2013, alleging Beck's became part of Anheuser-Busch Cos., which began to brew Beck's in St. Louis, Mo., in 2012 to cut costs.
But the marketing and advertising of Beck's remained mostly unchanged, confusing consumers into thinking Beck's was still made from German ingredients and imported from Germany, when it was brewed in the U.S. with domestic ingredients, the complaint said (41 PSLR 1259, 10/21/13).
Dismissal Motion Denied
Anheuser-Busch's motion for dismissal was denied in 2014 (42 PSLR 1011, 9/15/14).
The class includes anyone in the United States who purchased Beck's beer in the United States for personal, family, or household purposes from May 1, 2011, until preliminary approval of the deal is granted.
The proposed class settlement would provide a sliding scale of refunds. Class members would receive between 10 cents (purchase of one bottle or can) and $1.75 (purchase of a 20-pack of 12 oz. bottles). Reimbursements would be capped at $50 per settlement class household for those with proof of purchase, and $12 per household without proof of purchase.
Packaging Changes
Additionally, Anheuser-Busch agreed, for five years, to include either the phrase Brewed in U.S.A. or Product of U.S.A on Beck's Beer bottles and cans, in the form and position recently approved by federal regulatory authorities. The phrase also would appear on the front and back of Beck's beer packaging and on the Beck's website, according to the motion.
Anheuser-Busch had begun the process of changing its packaging while the suit was pending, the motion says. The Alcohol and Tobacco Tax and Trade Bureau has approved the changes, and the settlement provides that the company maintain the changes for five years.
The plaintiffs also asked the court to appoint Robert W. Rodriguez P.A.; Harke Clasby & Bushman LLP; Kozyak, Tropin & Throckmorton LLP and Cambell Law LLC as class counsel.
Skadden, Arps, Slate, Meagher & Flom represents Anheuser-Busch.
I agree with requiring the "Brewed in U.S.A." But since we all can brew a very close Beck's clone, I am not convinced of consumer damages
