Kroger to pay $1.5 billion to settle class-action lawsuit
Kroger Co. said it has reached a $1 billion settlement with customers who claim they were defrauded by the retailer in a class-actions lawsuit filed in New York.
The settlement will pay more than $100 million to customers who were harmed by the fraudulent practices, including consumers who received the product, which was allegedly contaminated with mold.
The retailer had initially faced a class action lawsuit from more than 30,000 customers in the U.S., Canada and Mexico.
The lawsuit alleged that customers were pressured to sign over the items in order to receive the free samples.
In February, the New York attorney general’s office filed a civil lawsuit alleging that the company violated the state’s consumer protection law by selling contaminated food and contaminated products.
The company settled the complaint last month for $750 million, bringing its total to $1,500 million.
Kroger also agreed to pay an undisclosed amount to a third customer, according to the settlement.
Krogers Chief Financial Officer Mark Hirsch said in a statement the company will be “actively working with state regulators and consumer advocates to further the resolution of the lawsuit.”