Athena Hohenberg v. Ferrero USA

MEMORANDUM

Athena Hohenberg and Laura. Rude-Barbato (“Plaintiffs”) filed these class actions alleging that Ferrero was misleadingly advertising Nutella as a healthy breakfast food. After a class of California consumers was certified, the parties negotiated a settlement. The settlement (a) created a $550,000 monetary fund to partially reimburse class members who had purchased Nutella and (b) provided for substantial injunctive relief requiring Fer-rero to revise its advertising campaign for Nutella and to supply more nutritional information on Nutella’s label. In the settlement agreement, Ferrero agreed that it wouldn’t challenge class counsel’s application for a fee award, not exceeding $900,000, specifically for the injunctive relief obtained. The district court approved the settlement and made an overall attorneys’ fee award of $985,920.

Three class members (the “objectors”) objected to the settlement, and appeal from the district court’s approval of the settlement. They argue that: (1) there was inadequate notice of the request for attorneys’ fees; (2) the injunctive relief doesn’t justify a fee award; (3) the district court failed to adequately explain its approval of the…