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31 January
Judge certifies class action challenging ChapStick 'all natural' labels

Jan 31 (Reuters) - A lawsuit accusing a former GlaxoSmithKline GSK.L unit and Pfizer PFE.N of misleading consumers by marketing some ChapStick products as “all natural” and "naturally sourced" even though they allegedly contain synthetic or highly processed ingredients can move ahead as a class action, a California federal judge has ruled.

U.S. District Judge Jeffrey White in Oakland on Tuesday certified a class of California ChapStick purchasers led by state resident Lisa Moore, finding their interests were sufficiently aligned.

The judge declined to certify a damages class, however, concluding the plaintiffs had not provided adequate evidence of how much the alleged false marketing caused consumers to overspend on the products.

Attorneys for the class said in a statement that the class certification decision “will propel the case forward to trial,” and said they believe they can “easily cure” deficiencies that have so far kept the damages class from being certified.

GSK and Pfizer had controlled the ChapStick brand through a consumer healthcare joint venture, which they spun off in July 2022 into a new company, Haleon HLN.L. The companies on Wednesday referred questions to Haleon, which did not immediately respond to a request for comment.

Moore’s 2020 lawsuit alleged violations of California consumer protection and business laws and sought to create a class representing all California residents who purchased certain ChapStick products in the prior four years.

Moore claimed she and others were misled by labels on six of the lip balm products and may not have purchased them had they known they contain synthetic or highly processed ingredients.

The companies have said a reasonable consumer would not be misled by the packaging claims, arguing most people would assume manufacturing ChapStick involves adding and processing ingredients since the product is not found in nature.

Haleon said earlier this month that personal care brand Suave has agreed to buy the ChapStick brand for around $430 million in cash and an $80 million stake in Haleon.

The case is Lisa Moore et al. v. GlaxoSmithKline Consumer Healthcare Holdings (US) LLC et al., in the U.S. District Court for the Northern District of California case No. 4:20-cv-09077.

For the class: Ryan Clarkson and Katherine Bruce of Clarkson Law Firm

For the defendants: Jonathan Tam and Jacqueline Harrington of Dechert

(Reporting by Clark Mindock)

((Clark.Mindock@thomsonreuters.com;))

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