—Lancaster Farming, Saturday, October 14,1978
24
Out-of-court
ATLANTA, Ga.—A plan for the settlement of the 3-year
long dispute between United Egg Producers and Standard
Brands, Inc. was tentatively agreed upon last week. By an
order of U.S. District Judge William C. O’Kelley, the
agreement will be proposed in court on Oct. 31 for either
approval or disapproval by class members and the court.
The settlement came out of court, after both sides
reportedly had given “due consideration to the hazards of
suit...”
The conflicting parties agreed that it Would be “in the
best interests of all plaintiffs and the defendant to settle
all claims... without further litigation or trial.”
Thus ended the egg industry’s 3-year old battle to-halt
alleged misleading advertising by Standard Brands, Inc.,
the makers of “Egg Beaters,” and egg substitute product.
The hearing on Oct. 31 will take place before Judge
O’Kelley at 11 a.m. in Room 220 of the United States
Courthouse, 56 Forsythe Street, Atlanta, Ga. Any member
of United Egg Producers, a national cooperative for egg
farmers, may attend and be heard. Members’ attention is
particularly invited to the fact that the approval of the
settlement will produce money only to UEP for its ex
pense in connection with the litigation, and not to any
individual producer or regional cooperative.
According to the proposed settlement, the egg industry
plaintiffs will be awarded $307,500 for attorneys’ fees and
other costs. It also gives the industry assurance that
Standard Brands will use only factual advertising in the
future.
A clause in the settlement would also prohibit either
Standard Brands or UEP to return to court with the same
claims involved in the original suit and countersuit.
Approval of settlement is thought to be a near certain* •
The terms of the proposed settlement are contained in
14 paragraphs which describe restrictions and other
provisions which both parties are expected to adhere to.
They may be summed up as follows:
1. The parties agree that Standard Brands, In
corporated, its subsidiaries, affiliates and divisions
(Standard Brands) and the United Egg Producers (UEP),
its members, as individuals and as members of UEP,
their successors, assigns, affiliates, owners, proprietors,
partners, and other entities shall not from this day for
ward and without acknowledging that they have done so in
the past cause to be made, distributed or published any
disparaging statements concerning eggs or the Standard
Brands product “Egg Beaters” about the diet-heart
cholesterol issue in any advertisement or public medium
where such disparaging statement is likely to have an
adverse commercial effect on eggs or “Egg Beaters.”
Advertisement shall include but shall not be limited to
advertisements in magazines, periodicals, trade journals
or through radio and television. Nothing in this agreement
shall prohibit any party from giving testimony, making
statements or presenting talks or technical papers before
shareholders’ meetings, association or board meetings,
professional or technical groups or before any public or
governmental regulatory body relating to eggs or “Egg
Beaters” or the diet-heart cholesterol issue.
2. Except as otherwise permitted herein, no party shall
disseminate or cause the dissemination of any ad
vertisement about eggs or “Egg Beaters” which
represents that eggs or “Egg Beaters” have a special
tendency to create serum cholesterol medical disad
vantages or advantages for those who ingest them or one
that represents that, because of an effect on serum
cholesterol, eating eggs or “Egg Beaters” increases or
scramble settles egg dispute
decreases the risk of heart attack, heart disease, ar
teriosclerosis or any attendant condition or that eating
eggs or “Egg Beaters” adversely or beneficially affects
the serum cholesterol level.
Nothing in this agreement shall preclude either party
from any use of any material now in use on then
respective labels or on any alterations thereof so long as
such labels or other material are'permitted or required by
law or regulation of any federal, state or municipal
government or competent subdivision of agency thereof
or by the National Association of Broadcasters or other
industry or realted industry regulatory body.
3. Nothing in this agreement shall prevent Standard
Brands from advertising “Egg Beaters” as a “no
cholesterol” product or from designating “Egg Heaters”
as a “no cholesterol” or “cholesterol-free” egg substitute.
4. Nothing in this agreement shall prevent the parties
from making truthful statements of fact with respect to
the nutritional characteristics of eggs or “Egg Beaters”
and comparative statements, including but not limited to,
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STATE
taste and cooking, which are not invidious but are
' designed to foster competition among competing
products.
Nothing in-this agreement shall prevent the parties
from making any statements with respect to eggs or “Egg
Beaters” in any of their internal publications provided
such statements are factual.
6. Because it has been determined that UEP expended
an amount greater than that expended by Standard
Brands in the prosecution and defense of various claims in
this action, defendant Standard Brands agrees to pay to
plintiff UEP Three Hundred Seven Thousand Five
Hundred ($307,500) Dollars for its attorneys’ fees,
disbursements and expenses so that neither party may be
said to have benefited at the expense of the other from the
litigation.
7_Each party agrees to return to each other all copies of
all documents secured from the other by discovery or
otherwise in connection with this litigation, and not to
(Turn to Page 36)
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