Dannon to pay $35M in yogurt settlement

The Dannon Co. said Friday it will reimburse consumers for up to $100 US of Activia and DanActive yogurt purchases and change its marketing and labelling to settle a class-action lawsuit.

The lawsuit, filed in 2008, alleges Dannon overstated the yogurt's health benefits. The company claims the products can strengthen the body's defences or regulate digestion because of bacteria they contain.

White Plains, N.Y.-based Dannon, a unit of France's Groupe Danone, denies any wrongdoing and said it settled the suit to avoid any further litigation and expense.

The settlement still needs to be approved by the U.S. District Court for the Northern District of Ohio.

As part of the settlement, Dannon will set up a fund of up to $35 million US to reimburse qualified consumers for purchases. Customers who purchased Activia or DanActive yogurt since the products were introduced in 2006 and 2007, respectively, will be able to file for reimbursement.

Dannon will also change labelling and marketing to "increase the visibility of the scientific names of the unique strains of probiotics that are in each of these products," Dannon said in a statement.

Once the settlement is approved, consumers will be able to find out more about the process for filing for reimbursement and other information at DannonSettlement.com.