Red Lobster Beats Consumer’s False-Ad Suit Post-Bankruptcy Order

A consumer alleging Red Lobster Management LLC deceptively advertised its products as “sustainable” hit a dead end after a federal judge dismissed the suit because a 2024 bankruptcy order released the restaurant chain from such claims.

Judge John A. Kronstadt of the US District Court for the Central District of California dismissed the proposed class action with prejudice Tuesday. The consumer had alleged that Red Lobster tricked its customers into believing its seafood products were “sustainable” despite being sourced from suppliers who use environmentally harmful practices.

• Red Lobster filed for bankruptcy in 2024 due to expensive leases, high labor costs, ...