Kona coffee farmers have each begun receiving their share of a $13.1 million settlement reached in a 2019 class action lawsuit against retailers that falsely labeled commodity coffee beans as premium “Kona” coffee.
Jim Monk, owner of Monk’s Delight Kona Coffee, was elated when he received his mail last week to find an envelope containment a check for thousands of dollars — his portion of the settlements reached in spring 2021.
“Over $4,000 for me alone, and I’m just a tiny farmer,” said Monk of his 2-acre coffee farm south of Captain Cook, near the first of the 1950 lava flows from Mauna Loa. “Somebody with more acres could be getting a big settlement.”
Monk is among some 600 Kona coffee farmers included in the 2019 class action lawsuit filed by Bruce Corker, Colehour and Melanie Bondera and Robert and Cecelia Smith against 18 defendants including major retailers like Walmart, Costco, Amazon and Safeway, and other distributors, wholesalers, and sellers.
The ongoing litigation claims the companies falsely advertised coffee as “Kona” that did not originate in the Kona region in violation of the Lanham Act, which addresses false advertising.
In spring 2021, settlements were reached and approved by the U.S. District Court for the Western District of Washington for eight of the defendants: BCC Assets, Cameron’s Coffee and Distribution Company, Copper Moon Coffee, Cost Plus Inc., Pacific Coffee, which does business as Maui Coffee Company, Costco, Marshalls and Gold Coffee Roasters totaling $13.1 million.
The settlement also required the coffee sellers to follow new labeling guidelines and vendors to go through a certification process when labeling coffee as originating in the Kona region.
“We are pleased with the progress of the class action lawsuit to date, and we’re delighted to see the distribution to class members of the first round of settlements,” said Corker.
As the payments from those settlements began reaching Kona coffee farmers, another three more settlement agreements were presented to the court for preliminary approval earlier this month.
Per the Feb. 11 filing, Kroger Co. agreed to pay $1.35 million, as well as adhere to labeling obligations, while Hawaiian Isles Kona Coffee agreed to pay $800,000 and completely drop the term “Kona” from its name becoming Hawaiian Isles Coffee Co. Safeway Inc./Albertsons Companies Inc. will pay nothing, however, agreed to sell coffee labeled as “Kona” or “Kona blend” only if certain labeling standards are met.
A motion for preliminary approval of the three settlements was granted Monday.
If final approval is granted in June, settlements reached in the case will total $15.25 million.
Four defendants remain listed on the case docket.
