Old Lyme Gets Nod for $4 Million Deal in ‘Non-GMO’ False-Ad Suit

A $4 million settlement between Old Lyme Gourmet Co. and consumers alleging deceptive advertising won a federal magistrate judge’s recommendation of preliminary approval.

Magistrate Judge Taryn A. Merkl on Wednesday gave an initial nod to the deal, which resolves claims the company—which does business as Deep River Snacks—misled consumers into believing its “non-GMO” graphic meant a third party had verified the ingredients in its products.

The consumers brought a lawsuit the US District Court for the Eastern District of New York, alleging the company’s cheddar horseradish and sour cream and onion chips contained a graphic similar to the icon from ...