http://www.arkansasbusiness.com/article.aspx?aID=119729.54928.131871
Tyson Agrees To Settle Suit Over Antibiotic Labeling For $5 million
By Susannah Patton
1/20/2010 11:01:48 AM
Tyson Foods Inc. of Springdale has agreed to pay up to $50 to every consumer who bought poultry that was labeled antibiotic-free.
The refunds are part of a settlement of a class-action lawsuit that accused the company of falsely claiming its chickens were raised without antibiotics.
The settlement is capped at $5 million, not including $3 million in attorneys’ fees.
U.S. District Judge Richard D. Bennett granted preliminary approval of the settlement, filed in federal court in Baltimore, on Jan. 15.
Tyson began its “Raised Without Antibiotics” advertising campaign in 2007.
Tyson uses ionophores, a poultry feed additive that the U.S. Department of Agriculture classifies as an antibiotic. Because ionophores have not been shown to be harmful to humans, Tyson wanted to advertise its chicken as being “without harmful antibiotics.”
The USDA approved the phrase for marketing purposes in December 2007, but competitors Perdue Farms and Sanderson Farms filed lawsuits one month later. Consumers followed with a class-action suit.
Tyson spokesman Gary Mickelson said in a statement that the campaign was suspended in 2008 because of labeling challenges.
“We’re pleased a settlement has been reached and the court has given preliminary approval,” he said. “While we believe our company acted appropriately, we also believe it makes sense for us to resolve this legal matter and move on.”
According to the settlement, consumers who purchased Tyson chicken products labeled as antibiotic free from mid-June 2007 through April 2009 are entitled to refunds.
today’s headlines
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* Arkansas To Get $4.9 Million For Green Jobs Training
* UPDATE 2: House Passes Bill To Help Increase Donations To Haiti
* Lawmakers Recommend Status Quo On Raises For Themselves, Other Arkansas Officials
* UA To Cut Budgets, Use Reserve Funds And TV Revenue, Freeze Hiring
* Less Than 25 Percent of Highway Stimulus Funds Uncommitted
* Mann Pleads Not Guilty in Pierce Bombing Case
How convenient. Now you just have to prove it to get your money. Right?