By Jonathan Stempel
(Reuters) -PepsiCo has resolved a lawsuit accusing it of falsely marketing its Gatorade protein bars as good for you, though they contain more sugar than protein and more sugar than Snickers
bars and chocolate-frosted Dunkin' donuts.
U.S. District Judge Casey Pitts in San Jose, California, on Monday dismissed the proposed class action with prejudice, meaning the case cannot be brought again, at the request of PepsiCo and three self-described fitness enthusiasts who sued.
It was unclear whether the parties settled following court-ordered mediation. PepsiCo and its lawyers did not immediately respond to requests for comment. Maia Kats, a lawyer for the plaintiffs, declined to comment.
PepsiCo was accused of violating federal and state consumer protection laws by assuring that Gatorade bars "help muscles rebuild," are "used by the pros" and are "backed by science."
The plaintiffs said the bars were actually "fortified junk food" with 28 grams of added sugar, above the American Heart Association's recommended 25 gram daily limit for women, and just 20 grams of protein.
They said excess added sugar is linked to high rates of obesity, diabetes and cardiovascular disease, and they wouldn't have bought the bars or would have paid less had they understood the contents.
PepsiCo had called the deception claims "implausible" because it did not market Gatorade bars as healthy or low in sugar, especially for flavors such as Chocolate Chip and Cookies and Cream.
Pitts let the case proceed in August 2024, saying reasonable consumers might be confused by PepsiCo's labels and misled by its "self-proclaimed science-backed claims."
PepsiCo is based in Purchase, New York. Its dozens of brands also include Fritos, Lay's, Mountain Dew and Ocean Spray.
The case is McCausland et al v PepsiCo Inc, U.S. District Court, Northern District of California, No. 23-04526.
(Reporting by Jonathan Stempel in New York)
