Earlier this year, coffee giant Keurig reached a settlement in a class action proceeding.

After a consumer learned that K-Cups, the plastic coffee pods included in products sold by Keurig Green Mountain, were not recyclable, they filed a class-action lawsuit. The claim stated that Keurig included misleading language in its product packaging by calling these cups “recyclable” when they were not actually accepted for recycling in any area.

The class-action lawsuit was filed in 2018 and alleged that while some parts of the cups could be recycled, others were not recyclable and could have led to contamination. Keurig requested to dismiss the lawsuit, but the judge in the case refused and allowed the plaintiffs to recover damages.

What was the settlement in the class-action lawsuit?

A settlement agreement was later reached in the case. Part of the settlement terms required Keurig to take action. First, the company was mandated to place a revised statement on its products to indicate that they were not eligible for recycling.

The settlement also required the font of the disclaimer to be no smaller than 55%, similar to other disclaimers on products. The company was also ordered to make changes to its Keurig's website pertaining to the way the products are advertised to reduce the possibility of misrepresentation.

The class-action lawsuit awarded a settlement of $10 million. Individuals without proof of payment would each receive $5, while those with proof would receive a total of $36.