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 purchasedĀ in the United States between Jan. 28, 2008, and Oct. 1, 2009.

link

Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.