Ninth Circuit addresses cy pres doctrine in new class settlement decision: Dennis v. Kellogg Co.

In Dennis v. Kellogg Co., ___ F.3d ___ (9th Cir. Jul. 13, 2012), the Ninth Circuit reversed final approval of a class action settlement because the cy pres recipients who would receive the settlement fund residual were "divorced from the concerns embodied in consumer protection laws such as the UCL and the CLRA."  Slip op. at 8120-21.  The court also found the attorneys' fees award excessive.  Id. at 8125-29.

The case involved UCL and CLRA claims against Kellogg Co. for representing that Frosted Mini-Wheats cereal "was scientifically proven to improve children’s cognitive functions for several hours after breakfast."  Id. at 8114.