A class-action lawsuit against the makers of Canada Dry ginger ale has been settled for $200,000.
A B.C. man alleged that the advertising slogan “Made from Real Ginger” was misleading as the product contained no ginger.
Victor Cardoso claimed he bought the product because ginger had medicinal benefits.
In September of last year, the plaintiff filed a notice of application “to concede that Canada Dry Ginger Ale contains small amounts of ginger derivatives,” according to the decision.
Court documents say Canada Dry Mott’s Inc. agreed to pay $200,000, and more than $18,000 in disbursements, but “expressly denies liability and is not required to change its product labelling or advertising for products marketed in Canada.”
Around $100,000 of the settlement will cover legal costs even though lawyers spent more than $220,000 researching and litigating the case. The remainder of the settlement will go to the Law Foundation of British Columbia.
“I am concerned that an award whereby counsel receives more than the amount being paid… on behalf of their collective client class could be viewed adversely by the public,” Justice Karen Douglas wrote.
“The ultimate purpose of the class-action vehicle is to benefit the class, not their lawyers.”
Cardoso and a plaintiff from Alberta both received $1,500 honourariums.
Ginger ale has long been considered a home remedy for an upset stomach, but dietitians say the high sugar content in ginger ale might actually make you feel worse — especially if you drink too much of it.