Ang v. Bimbo Bakeries USA, Inc.

Background

Plaintiffs Alex Ang and Lynn Streit filed an unopposed motion for preliminary approval of a class-action settlement. The court held a hearing on the motion and raised concerns about releases of claims by absent class members—class members who are not named as parties—because the proposed releases covered claims that had not been certified for class treatment.

The parties submitted a revised settlement agreement. The revised agreement still provided that absent class members would release claims for injunctive, declaratory, or other equitable relief that had been certified for class treatment. But the proposal did not provide notice of that release or an opportunity for absent class members to object or opt out. The court stated that the release was intended to remove rights that absent class members would otherwise retain.

Settlement concerns

The court also found ambiguity in the proposed injunctive relief. The defendant certified that soy flour had been removed from the ingredient lists for several products. The plaintiffs’ allegations included that it was misleading to label products as “100% Whole Wheat” when they contained soy flour. The court noted that the settlement did not state whether soy flour had actually been removed as an ingredient. Simply removing soy flour from an ingredient list while the products still contained soy flour would not resolve the identified problem, the court said.

Order

The court stated that it remained inclined to deny preliminary approval, but the order did not deny the motion. Instead, the court directed the parties to file a supplemental joint statement of five pages or less by March 3, 2020. The statement had to address the product and labeling changes and explain whether the parties would remove the release as to absent class members or propose a class-notice plan. Judge Haywood S. Gilliam, Jr. signed the order.