Stomachaches for Food and Beverage Manufacturers Dealing with Recalls

With more than half a billion eggs recalled in August 2010—one of the largest recalls in history—recalls and food safety are a fresh topic.[1] Recalls have long sparked litigation from consumers who were actually sickened by food, but now, food and beverage manufacturers face another threat—consumer lawsuits alleging fraud, violations of warranty obligations, and false advertising claims predicated solely on economic injury from recalls. Two recent consumer class actions filed in California and one in New York are illustrative of the new threat.[2]