The cereal major was hit with a class action lawsuit over its 2008 health claim that said Frosted Mini-Wheats were clinically proven to improve children’s attentiveness by nearly 20%.
It initially negotiated a settlement totalling $10.5m back in April 2011 but it was rejected on September 4, 2012 as it was considered that the $5.5m set to go to charities would ‘benefit’ Kellogg.
Kellogg will pay up $4m, around half of which ($2-2.5m) will be paid out to any consumers that submit claims.
The cereal firm previously told BakeryandSnacks.com that Kellogg had long ago adjusted its communication to incorporate Federal Trade Commission (FTC) guidance.