PepsiCo Wins Dismissal of New York's Plastic Pollution Lawsuit

By Jonathan Stempel
NEW YORK (Reuters) – PepsiCo (NASDAQ:PEP) successfully dismissed a lawsuit from New York accusing the company of environmental pollution through single-use plastic packaging. Justice Emilio Colaiacovo criticized Attorney General Letitia James for not proving that PepsiCo created a public nuisance or adequately warned consumers about health risks related to plastic in over 100 of its brands.

James filed the lawsuit last November, claiming that PepsiCo and its Frito-Lay unit were responsible for 17% of the plastic waste in the Buffalo River, affecting Buffalo's water supply. However, the judge noted that it was individuals, not the company, who overlooked littering laws.

Colaiacovo referenced a 2003 appeals court decision about Sturm Ruger, stating that holding companies liable for criminal misuse of their products could lead to a flood of public nuisance lawsuits. He emphasized that recycling and environmental stewardship ideals do not justify baseless claims against PepsiCo.

A spokesperson for James expressed disappointment with the ruling, highlighting the office's commitment to addressing plastic pollution as a significant threat to the environment and public health. PepsiCo welcomed the dismissal and reiterated its commitment to reducing plastic waste through collaborative efforts.

James' lawsuit is part of a broader trend, with numerous state and local governments pursuing legal action against companies using plastics. The ruling came a day after Los Angeles County filed a similar lawsuit against PepsiCo and Coca-Cola (NYSE:KO) regarding their single-use plastic packaging.

PepsiCo's brand portfolio includes Cheetos, Cracker Jack, Doritos, Fritos, Gatorade, Lay's, Lipton, Mountain Dew, Ocean Spray, Pepsi, Quaker, Ruffles, and Tostitos.

The case is New York v. PepsiCo Inc et al, New York State Supreme Court, Erie County, No. 814682/2023.