Robbins Geller Rudman & Dowd LLP Announces Settlement Regarding Diamond Pet Foods Products

Robbins Geller Rudman & Dowd LLP announces that Schell & Kampeter, Inc. (d/b/a Diamond Pet Foods), Diamond Pet Foods Inc., and Costco Wholesale Corporation (collectively, “Defendants”) have agreed to provide monetary relief to purchasers of certain recalled pet food products that were placed into the stream of commerce in 2011 and 2012.

The lawsuit alleges that defendants manufactured and/or distributed certain pet food products that led to illness and death of some animals that consumed them, and in doing so breached their warranties, were negligent, were strictly liable, violated state statutes prohibiting unfair or deceptive trade practices, and/or were liable under other theories. The Defendants deny that they did anything wrong. The settlement is not an admission of wrongdoing and the Court has not decided who is right and who is wrong. Instead, the parties decided to settle the dispute.

Defendants have agreed to provide a settlement fund of $2 million, consisting of three sub-classes, and the continuation of certain quality control procedures.

Sub-Class I: Defendants will create a settlement fund limited to a total maximum of $750,000 to refund the purchase price of the product. In this sub-class, individuals who: (1) purchased but never used a recalled pet product, never fed his/her pet or animal the recalled product, and the class member discarded or retained the product, did not return the product to the dealer or otherwise exchanged the product; or (2) purchased and used a recalled pet product that caused economic damages detailed in Sub-Class II will receive reimbursement of their purchase.

Sub-Class II: Defendants will create a settlement fund limited to a total maximum of $1,250,000 to pay claims for individuals who, in addition to having purchased or used a recalled pet food product, sustained economic damages as a result of injury or death to animals from their consumption of a recalled product.

Sub-Class III: Defendants will also provide relief in the form of coupons for class members who purchased pet food products subject to the recalls and fully utilized the products (i.e., fed the products to their pets or animals) with no resultant ill effects. The class member in submitting a valid claim shall receive one or more coupons. The total maximum value of such coupons shall be $100,000, each with a face value of two dollars ($2) to a maximum of 50,000 coupons.

Defendants will employ for three years from the date of the approval of the settlement and final judgment new and improved quality control procedures and therapeutic reforms that had not been implemented prior to the placement of the recalled pet food products into the market place. Additionally, plaintiff has a right to visually inspect defendant Schell & Kampeter, Inc.’s Gaston, South Carolina, manufacturing facility to ensure that the standards are being employed.

You must submit a completed Claim Form, postmarked by July 11, 2014. A Final Approval Hearing will be on September 15, 2014 at 11:15 a.m., at the United States District Court for the Eastern District of New York, Courtroom 1010, 100 Federal Plaza, Central Islip, NY 11722, to determine whether the proposed settlement is fair, reasonable, and adequate, and to approve attorneys’ fees and expenses and any service awards for the plaintiffs. You do not need to attend the hearing. Further, the hearing date may be changed by the Court, and you should check www.DiamondPetFoodsSettlement.com for updates.

To receive payment, to learn more about the settlement, and to get a list of pet foods at issue, visit www.DiamondPetFoodsSettlement.com or call 1-877-284-5091.