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May 15, 2007

Update: Splenda lawsuit settlement

At the end of a month-long trial, the manufacturer of Splenda artificial sweetener settled the false advertising claim brought by the manufacturer of rival product Equal.  As earlier noted here in the Oregon Business Litigation blog, the trial in Philadelphia addressed whether the advertising slogan "made from sugar, so it tastes like sugar" is false, in violation of the Lanham Act and state law.

The terms of the settlement were undisclosed -- it's unknown whether the ad slogan will change, for example.  But defendant evidently saw the handwriting on the wall:  settlement talks started in earnest when the jury, during its deliberations, asked the judge for a calculator and copies of expert reports on damages.  The parties announced the settlement just before the verdict was to be read. 

See coverage of the settlement at How Appealing, Law.com, MSN, and the Wall Street Journal Law Blog.

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