Kyla Asbury Dec. 4, 2014, 10:42am

SAN FRANCISCO (Legal Newsline) - Jamba Juice has agreed to stop labeling its smoothie kits as "all natural" as part of a class action lawsuit settlement that alleged its packaging was misleading.

The motion for settlement was filed on Dec. 1 in the U.S. District Court for the Northern District of California.

Jamba Juice will move the "all natural" phrase from its labels and advertising by March but will not recall products or stop use of already printed labels.

The agreement lasts as long as the contested ingredients are part of the at-home smoothie kits or until regulators classify them as natural, according to the settlement document.

"As the settlement agreement provides for injunctive relief only and requires no release of any monetary remedies or other equitable relief by any member of the settlement class, the parties agree that notice and opt-out rights are not necessary," the settlement document states.

Class counsel will also receive $425,000 in fees and costs, according to the settlement document.

"Although the settlement does not include monetary relief for the class, it stops defendant's allegedly unlawful practices, bars defendant from similar practices in the future, and does not prevent the class members from seeking damages," the settlement document states.

Aleta Lilly and David Cox filed the class action lawsuit on July 28, 2013.

Lilly and Cox claimed they were unaware that the smoothie kits included additives such as ascorbic acid, modified corn starch and steviol glycosides, which do not qualify as "all natural."

The plaintiffs claimed the Jamba Juice violated the California Consumers Legal Remedies Act, the California False Advertising Law and the California Unfair Competition Law.

The plaintiffs are represented by Rosemary M. Rivas of Finkelstein Thompson LLP in San Francisco and Marc Lawrence Godino of Glancy Binkow & Goldberg LLP of Los Angeles.

Jamba Juice is represented by David B. Rosenbaum, Maureen Beyers and James K. Rogers of Osborn Maledon PA in Phoenix and Robert S. Niemann of Keller and Heckman LLP in San Francisco.

The case is assigned to District Judge Jon S. Tigar.

A fairness hearing is scheduled for Jan. 8.

U.S. District Court for the Northern District of California case number: 3:13-cv-02998

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