Dairy accused of deceptive marketing

By: Associated Press Email
By: Associated Press Email

Boulder-based Aurora Organic Dairy, which supplies many U.S. grocery chains, has agreed to a $7.5 million settlement in a five-year-old consolidated class-action lawsuit against the company.

The lawsuit was initially filed on behalf of two St. Louis-area mothers in 2007 who claimed the dairy used unfair and deceptive practices to sell non-organic milk at organic prices. It also alleged the company's milk didn't live up to USDA organic standards.

In 2009, a federal judge in St. Louis dismissed the suit, saying Aurora's products had been deemed organic by a USDA-accredited certifying agent.

Company spokeswoman Sonja Tuitele says the dairy never did anything wrong, but it had grown weary of litigation and wanted to settle the case, which had become a "distraction."

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