By Jonathan Stempel
Feb 19 (Reuters) - Wheat Thins purchasers reached a $10 million settlement of a lawsuit accusing Mondelez International MDLZ.O of deceptively labeling the crackers as "100% Whole Grain" though they contained corn starch, a refined grain.
A preliminary settlement of the nationwide class action was filed late Tuesday night in San Francisco federal court, and requires a judge's approval.
Purchasers with valid claims would receive refunds of $4.50 to $20.00, depending on whether they kept receipts and how many Wheat Thins boxes they bought.
Mondelez also agreed not to use "100% Whole Grain" on Wheat Thins packaging without qualifying that language.
According to the October 2022 complaint, whole grains are healthier than refined grains, and Wheat Thins purchasers would not have bought or would have paid less for the crackers had they known Mondelez's labels were false.
The settlement covers U.S. purchasers since Oct. 13, 2018 of Original, Reduced Fat, Sundried Tomato & Basil, Big, Ranch, Hint of Salt, Cracked Pepper & Olive Oil, and Spicy Sweet Chili Wheat Thins with "100% Whole Grain" on the label.
Leftover money would go to UCLA's Resnick Center for Food Law and Policy and to Feeding America, a hunger relief nonprofit.
The purchasers' lawyers may seek up to $3.33 million from the settlement fund for fees.
Mondelez denied wrongdoing in agreeing to settle. The Chicago-based company did not immediately respond on Wednesday to requests for comment.
The case is Wallenstein v Mondelez International Inc et al, U.S. District Court, Northern District of California, No. 22-06033.
(Reporting by Jonathan Stempel in New York, Editing by Franklin Paul)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))