Starbucks Corporation SBUX lands in hot water as a federal judge reportedly pushed the firm to face a lawsuit accusing them of missing a vital twist in their Refresher fruit drinks – the actual fruit.
U.S. District Judge John Cronan in Manhattan turned down Starbucks' bid to throw out nine of the 11 allegations in the prospective class lawsuit, stating that "a substantial number of reasonable consumers" would anticipate the drinks to include the fruit indicated in their titles, according to a report from Reuters.
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Hailing from Astoria, New York, Joan Kominis and Fairfield, California's Jason McAllister claimed they got duped by drink names, the report added.
The plaintiffs think the primary ingredients were water, grape juice concentrate, and sugar. They argue they were tricked into overpaying, highlighting a breach of their states' consumer protection acts, according to the report.
Pushing for a dismissal, the Seattle-based Starbucks fired back, claiming "its menu boards accurately advertised those flavors," Reuters said.
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However, the judge pointed out that, unlike the word "vanilla" which has been in many lawsuits, there's no evidence to suggest that terms like "mango," "passionfruit," and "açaí" are usually seen as just flavors without implying the actual ingredient, the report mentioned.
The lawsuit, ignited in August 2022, is eyeing a hefty $5 million in damages.
Price Action: SBUX shares are trading lower by 1.27% to $95.53 premarket on the last check Tuesday.
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