Lawsuit Filed Against Major Food Companies

By Brendan Pierson

Philadelphia, PA — Major food companies, including Kraft Heinz (NASDAQ:KHC), Mondelez (NASDAQ:MDLZ), and Coca-Cola (NYSE:KO), were hit with a new lawsuit in the U.S. on Tuesday. They are accused of designing and marketing "ultra-processed" foods to be addictive to children, which allegedly causes chronic disease.

The lawsuit was filed at the Philadelphia Court of Common Pleas by Bryce Martinez, a Pennsylvania resident who claims he developed type 2 diabetes and non-alcoholic fatty liver disease, diagnosed at age 16, from consuming the defendants' products.

Martinez's lawyers from Morgan & Morgan, a prominent U.S. plaintiffs' firm, described the case as the first of its kind.

The companies being sued also include Post Holdings (NYSE:POST), PepsiCo (NASDAQ:PEP), General Mills (NYSE:GIS), Nestle's U.S. arm, WK Kellogg (NYSE:K), Mars, Kellanova, and Conagra. The defendants have not yet responded to requests for comment.

Recent evidence suggests that highly processed foods are linked to a variety of chronic health issues. Foods classified as "ultra-processed" include many packaged snacks, sweets, and soft drinks containing substances extracted or artificially synthesized.

FDA Commissioner Robert Califf has indicated that ultra-processed foods are likely addictive. Robert F. Kennedy Jr., a health advisor under Donald Trump, has criticized the food industry and the FDA for their lack of regulation.

The lawsuit alleges that these food companies have long been aware of the harmful effects of their products and have deliberately made them as addictive as possible, drawing parallels to the strategies used by tobacco companies like Philip Morris (NYSE:PM) and R.J. Reynolds.

Claims in the lawsuit include conspiracy, negligence, fraudulent misrepresentation, and unfair business practices, seeking unspecified compensatory and punitive damages.