Kellogg $13 Million Cereal False-Ad Deal Gets Early Approval

Kellogg Sales Co. consumers secured a California federal court’s preliminary approval of a $13 million class deal on their second attempt to resolve allegations that certain cereals were deceptively portrayed as healthful despite a purportedly high sugar content.

Attorneys’ fee issues, an overly broad release of claims, a reversion to Kellogg of unclaimed funds, and other problems plagued the initially proposed deal, which offered a $12 million fund and $8.25 million worth of vouchers, Judge Lucy H. Koh of the U.S. District Court for the Northern District of California said last year.

The second time around, the deal eliminated the ...