Dannon to Pay $45M to Settle Yogurt Lawsuit

Feb. 26, 2010— -- For two years Dannon has been touting Activia and DanActive yogurt products as "clinically" and "scientifically" proven to regulate digestion and boost immune systems. The company even launched a glossy TV ad campaign featuring actress Jamie Lee Curtis, who calls the yogurt "tasty."

Yet, despite the claims, a judge in Cleveland this week says Dannon must pay consumers up to $45 million in damages under the terms of a class action settlement, reached in federal court. The agreement also calls for Dannon to change its health claims for Activia and DanActive .

"This is victory for just about anyone who benefits from accuracy in food labeling," Cleveland lawyer John Climaco told ABC News.

Climaco and fellow attorney Frank Piscitelli Jr., joined with attorneys from California and Florida in winning the settlement, which was approved by U.S. District Judge Dan Polster.

"The judge agreed that the company was making claims it simply hadn't proven," says Climaco.

DanActive was introduced in January 2007. Activia has been sold nationwide since February 2006. No other Dannon products were involved in the court action.

Both yogurts sell at a 30 percent premium over other brands because they claim special bacterial ingredients that the company advertised as clinically proven to help strengthen immune systems and regulate digestion.

"This was a disingenuous advertising campaign that promised something that hasn't been proven," Dr. Roshini Rajapaksa,, a gastroenterologist, told ABC News.

Dannon's troubles first began two years ago after Trish Wiener, a Los Angeles caterer, filed a federal law suit, charging the company claims were false and duped the public into buying yogurt that was more expensive, but no better than the others on the shelf.

"I saw the ad on TV, and I went to the market specifically to buy it," Wiener, who suffers from stomach problems, told ABC News, "And there was absolutely no change whatsoever in my digestive system."

"Deceptive advertising has enabled Dannon to sell hundreds of millions of dollars worth of ordinary yogurt at inflated prices to responsible, health-conscious consumers," Wiener's attorney, Timothy Blood, says.