Kellogg (NYSE: K ) has reached a proposed $4 million settlement in a class action lawsuit regarding its advertising of its Frosted Mini-Wheats brand of cereals.
The lawsuit alleged that the Kellogg's advertisements for the cereal falsely promoted an ability to boost memory, attentiveness, and other cognitive functions in children.
Kris Charles, a representative for Kellogg, denied any wrongdoing and stated that the cereal company had resolved the misunderstanding years earlier. "Kellogg Co. has a long history of responsible advertising," Charles was quoted as saying by Food Business News. "This class action settlement pertains to an advertising campaign that ran approximately four years ago. We long ago adjusted our communication to incorporate F.T.C.'s guidance."
The settlement, if approved by the court, will lead to a cash refund for a consumer of up to $15 to cover three boxes of cereal purchased in the United States between Jan. 28, 2008, and Oct. 1, 2009.