Mulvadi Agrees to Authenticate Kona Beans in Class Settlement

Mulvadi Corp. will certify its Kona coffee meets the product’s definition under Hawaii law, according to a preliminary agreement to settle a class action suit.

Mulvadi’s insurer agreed to pay $7.8 million, beyond the limits of its insurance policy, after the coffee company declared bankruptcy. The US District Court for the Western District of Washington will have to approve the settlement alongside a Hawaiian bankruptcy court.

• Kona coffee bean farmers said that companies like Costco Wholesale Co., Kroger Co., and Safeway Inc., falsely represented their coffee as originating from Kona, hurting the value of the farmer’s ...