Consumers Urge OK for $13 Million Kellogg Cereal Deception Deal

Kellogg Sales Co. consumers asked a California federal court for early approval of a $13 million class deal, the second attempt to resolve allegations that certain cereals were deceptively portrayed as healthful despite a high sugar content.

The new proposal remedies concerns that led to rejection of the first settlement, Stephen Hadley and others told Judge Lucy H. Koh of the U.S. District Court for the Northern District of California.

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 ...