Item 3. Legal Proceedings
ITEM
3.
LEGAL
PROCEEDINGS
The
Company was named as a defendant in a putative class action lawsuit filed in the United States District Court for the Northern
District of Illinois (the “Court”) on or about December 21, 2020. The plaintiffs, Eileen Brodsky and Rhonda Diamond,
purported to represent a class of individuals who purchased coffee products at Aldi, Inc. (“Aldi”), a supermarket
chain, generally allege that Aldi sold private label coffee products manufactured by us and by Pan American Coffee Co., LLC (“Pan American”), which
falsely described the number of cups of coffee that could be made from the amount of product purchased. Aldi and Pan American were also named
as defendants in the action. The complaint asserted a variety of claims under New York and California consumer protection laws, and
sought unspecified monetary damages, including disgorgement and restitution, as well as other forms of relief including class
certification, declaratory and injunctive relief, attorneys’ fees, and interest. On September 28, 2021, the Court entered an order granting the Company’s motion to dismiss with prejudice (the “Dismissal
Order”). In the Dismissal Order, the Court stated that no reasonable coffee drinker would be deceived by the Company’s packaging. The plaintiffs filed an appeal with the 7 th Circuit Court of Appeals (the
“Appeal”). After the Appeal was filed, the Company and the plaintiffs’ settled the matter during mediation in late January
2022 and the Appeal was dismissed.
A
significant customer of the Company was named as a defendant in a putative class action lawsuit filed in the United States District
Court for the District of Massachusetts (the “Massachusetts District Court”) on or about February 2, 2021, concerning
the labeling on private label coffee productions we sold to the customer. The plaintiff, David Cohen, purporting to represent a
class of individuals who purchased coffee products from our customer, generally allege that the customer sold private label coffee
products manufactured by the Company which falsely described the number of cups of coffee that could be made from the amount of product
purchased. The Company is not named as a defendant in the action, but has agreed to indemnify the customer for the costs and expenses
incurred in defending the lawsuit and for any liability the customer may suffer as a result. The complaint asserts a variety of
claims under Massachusetts consumer protection laws, and seeks unspecified monetary damages as well as other forms of relief
including class certification, declaratory and injunctive relief, attorneys’ fees, and interest. The Company believes the allegations in
the complaint are wholly without merit and that the claims asserted are legally deficient, and intends to vigorously support the
customer in defending the action. On February 28, 2022,the Company and the plaintiff, in his individual capacity and not on behalf of a presumptive class, resolved the matter in principle
and have reported the agreement in principle to the Massachusetts District Court. After the end of the period, the parties finalized the
details of a settlement agreement. The final settlement amount was immaterial to the Company’s operations and results
of operations.
ITEM
4.
MINE
SAFETY DISCLOSURES
Not
applicable.
21
PART
II