Klein v. Robert’s American Gourmet Food

Robert’s American Gourmet Food (Robert) (defendant) distributed snack-food products. Keystone Food Products (Keystone) (defendant) manufactured the relevant snacks. Klein and other purchasers of Robert’s products (collectively, plaintiffs) (collectively, Klein) brought a putative class-action suit against Robert and Keystone in the New York Supreme Court, Nassau County, alleging that the actual fat and caloric content of the relevant snacks substantially exceeded the advertised amounts. Klein, Robert, and Keystone reached a proposed settlement pursuant to which, among other things, Robert would issue $3.5 million in discount coupons for the purchase of Robert’s products, which would be distributed to the general public. There was no indication that the coupons would have any intrinsic cash value or be assignable or transferrable. In exchange, any class members who did not opt out of the settlement generally would be prohibited from suing Robert or Keystone on any theory of recovery that was asserted in the class-action suit. One class member (plaintiff) (objector) who had filed an individual suit in the New York Supreme Court, New York County, asserting essentially the same claims against Robert and Keystone objected to the proposed settlement. The Nassau County court, among other things, certified a settlement-only class consisting of all people in the United States that purchased a relevant snack product during a specified period, approved the settlement, enjoined class members from suing Robert or Keystone for any cause of action released by the settlement, and awarded $790,000 in attorney’s fees to class counsel. The objector appealed.