Nutella may not be good for your waistline—but it’s very good for lawyers’ bank accounts.
Earlier this year, Nutella maker Ferrero agreed to pay $3.05 million to settle a class action lawsuit over its allegedly deceptive marketing of the hazelnut spread. Of that money, $2.5 million will go to consumers who purchased Nutella over the four-year class period, each of whom can claim up to $20 in refunds.
The plaintiffs’ lawyers, however, stand to gain significantly more than that. Reuters reports that the class counsel in the case has filed an application seeking almost $4 million in fees and expenses. This total includes 30 percent of the cash settlement—a fairly standard fee for class action lawyers—and $78,888 in expenses. But the application also includes a claim for an additional $3 million, which Ferrero USA agreed to pay separately from the settlement fund, to cover the non-monetary relief that the lawyers won for class members.
This non-monetary relief came in the form of changes to Nutella’s advertising campaign: Under the terms of the settlement, Ferrero USA agreed to change marketing claims that allegedly painted Nutella as a healthy breakfast food. The class counsel calls this “a significant and highly valuable achievement” that merits significant monetary compensation.
Read more coverage of the settlement at Reuters.
