Lenny & Larry’s Cookies Ordered to Give Consumers More Value in False Advertising Scam
Following objections raised by the United States and others, the parties in a class action matter involving Lenny & Larry’s cookies filed an amended proposed settlement that would direct additional value toward consumer plaintiffs.
“Congress passed the Class Action Fairness Act to stop questionable settlements that benefit lawyers instead of injured consumers,” said Principal Deputy Associate Attorney General Jesse Panuccio. “As part of our efforts to protect consumers, the Department of Justice will continue to object to settlements that are not fair, reasonable, and adequate.”
The Class Action Fairness Act is designed to help ensure that class action settlements do not unreasonably benefit attorneys or third parties at the expense of the consumers involved, said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.
Plaintiffs in the case, Cowen et al. v. Lenny & Larry’s, Inc., alleged that labels for the defendant’s “The Complete Cookie” product included inaccurate nutritional information. Under the original proposed settlement reached between the parties and filed in October 2018, individual class members would have received pro rata shares of a $350,000 cash fund or up to $30 in free cookies.
However, the United States argued that the court should reject the settlement because it directed most of its value toward non-class members and attorney’s fees rather than to consumer plaintiffs. The parties thereafter filed an amended proposed settlement on April 2, 2019. Under the amended settlement, individual class members would receive shares of a $889,000 cash fund, or up to $35 in free cookies.
Class counsel now seek approximately $410,000 in attorney’s fees. The case is pending in U.S. District Court for the Northern District of Illinois, which must approve any final settlement.
Defendant: Lenny & Larry’s, Inc.
Criminal Charges: False Advertising
City and State: Chicago, Illinois
Exact Date: October 2018
Sentence or Outcome: Amended proposed settlement
Dollar Amounts: $350,000, $889,000
Defendant Name: Lenny & Larry’s, Inc.
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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