Rankins et al. v. Old Lyme Gourmet Co. (d/b/a Deep River Snacks)

Case Background

On April 9, 2020, Plaintiff Jewel Rankin and Darren Wong filed a Class action and Product Liability lawsuit over non-GMO labeling in the United States District Court, Eastern District of New York (Case number: 1:20cv1756). This case was assigned to Judge Eric N. Vitaliano and referred to Magistrate Judge Taryn A. Merkl.

Cause

Jewel Rankins and Darren Wong filed a detailed class action lawsuit against Old Lyme Gourmet Company, doing business as Deep River Snacks, alleging deceptive advertising practices. Rankins purchased the Aged Cheddar Horseradish product in 2018 from a Stop and Shop in Brooklyn, New York, while Wong bought the Cheddar Horseradish and Sour Cream and Onion products between October 2019 and March 2020 in San Francisco, California. Both Plaintiffs relied on a “Non-GMO Ingredients” seal prominently displayed on the product packaging, believing it signified independent verification that the products were free from genetically modified organisms (GMOs).

However, the seal was not issued by an independent third-party certifier; instead, it was created by the Defendant. The Defendant designed the seal to closely mimic reputable certifications like the Non-GMO Project seal, misleading consumers into thinking the products met established non-GMO standards. This deceptive advertising practice capitalized on growing consumer demand for GMO-free products, allowing Old Lyme to charge a premium price.

Injuries

The Plaintiffs and the proposed class members suffered significant financial injuries due to the Defendant’s misrepresentation. Rankins and Wong, like many other consumers, specifically sought Non-GMO labeled products and relied on the misleading seal to make informed purchasing decisions. They paid higher prices, believing the products met rigorous third-party verification standards for GMO-free ingredients. Instead, the products contained GMO-derived components, including dairy from cows fed GMO grains. These ingredients would not have passed the Non-GMO Project’s certification standards, which prohibit such origins. By presenting a deceptive Non-GMO seal, the Defendant undermined consumer trust, causing economic harm and misinforming consumers about the quality and authenticity of the products.

Damages

Rankins, Wong, and the class members sought compensation for the monetary losses incurred as a result of the Defendant’s false advertising. They argued that the products were worth significantly less than the price paid because they did not meet the Non-GMO standards implied by the seal. The Plaintiffs requested statutory damages under consumer protection laws in New York and other states, including New York General Business Law Sections 349 and 350, which address deceptive business practices and false advertising. Additionally, the lawsuit demanded punitive damages to deter similar conduct in the future, as well as injunctive relief to prevent Old Lyme Gourmet Company from continuing to use misleading Non-GMO labeling. The Plaintiffs also sought restitution for the financial harm caused by the misrepresentation and requested a Court order ensuring truthful labeling practices moving forward.

Key Arguments and Proceedings

Legal representation

  • Plaintiff(s): Jewel Rankin | Jewel Rankins | Darren Wong
    • Counsel for Plaintiff: George Volney Granade II | Spencer I. Sheehan | Sue Jung Nam | Charles D. Moore | Michael Robert Reese
  • Defendant(s): Old Lyme Gourmet Company doing business as | Deep River Snacks
    • Counsel for Defendants: Meghana Shah | Melissa Fox

Claims

The Plaintiffs asserted multiple claims against Old Lyme Gourmet Company. They alleged violations of state consumer protection statutes, including deceptive advertising and unfair trade practices. They also accused the company of fraud under Connecticut common law, asserting that the Defendant knowingly misrepresented its products through the self-created Non-GMO seal. Additionally, the Plaintiffs claimed the Defendant breached express warranties by providing false assurances about the products’ Non-GMO status. They further argued that Old Lyme Gourmet Company was unjustly enriched, profiting from higher sales and premium prices by exploiting consumer trust. The Plaintiffs sought class certification to allow affected consumers nationwide to recover damages collectively, emphasizing that the Defendant’s actions deliberately misled consumers and violated established standards for truthful advertising.

Defense

Old Lyme Gourmet Company denied the allegations brought by Jewel Rankins in her class action lawsuit. The company argued that the “Non-GMO Ingredients” seal on its packaging was not misleading and did not imply third-party verification. Old Lyme maintained that it complied with advertising laws and contended that its representations about its products were truthful and not deceptive.

Old Lyme challenged the standing of Rankins and the proposed class, asserting that neither the Plaintiff nor the class members suffered actual harm or monetary loss due to the product labeling. The company claimed that Rankins received the full value of her purchase and was not misled by the labeling.

The defense further argued that the class claims were not appropriate for certification, emphasizing that individual questions about reliance, damages, and purchasing decisions outweighed any common issues. Old Lyme also cited statutes of limitations and contributory negligence as barriers to the Plaintiff’s claims.

Additionally, Old Lyme asserted that Rankins’ claims were speculative and unsubstantiated, highlighting the absence of factual evidence to support her allegations. The company invoked affirmative defenses, including waiver, estoppel, and lack of causation, and requested dismissal of the complaint in its entirety.

Jury Verdict

On January 4, 2025, Old Lyme Gourmet Company settled the class action lawsuit brought by Plaintiffs Jewel Rankins and Darren Wong by agreeing to create a $4 million settlement fund. This fund aimed to reimburse consumers who purchased the company’s products bearing the misleading “Non-GMO Ingredients” seal, compensating them for their financial losses due to deceptive Non-GMO labeling.

 Court Documents:

Documents are available for purchase upon request at jurimatic@exlitem.com