Daily Harvest Lawsuit Settles for $7.67M After Food Safety Crisis
Company
Daily Harvest
Why
Food poisoning
Total Settlement Amount
$7.67M
Maximum Individual Claimant Award
$665 - $173,330
Objection & Claim Deadline
January 21, 2025
The Daily Harvest lawsuit has reached a significant $7.67 million settlement following widespread reports of food poisoning from the company's French Lentil + Leek Crumbles in 2022. This settlement, part of a larger $22.99 million agreement reached in 2024, addresses claims from affected customers who experienced personal injuries or monetary damages due to the Daily Harvest contamination. We've learned that consumers who purchased, received, or consumed these contaminated products can receive recall compensation ranging from $665 to $173,330, depending on injury severity. As a result of the contamination linked to tara flour, Daily Harvest initiated a comprehensive food recall after numerous reports of gastrointestinal illnesses. We understand that affected consumers have until January 21, 2025, to file their settlement claims, with compensation covering medical expenses, lost wages, and product costs.
Daily Harvest Recall Timeline and Impact
Initially, Daily Harvest distributed approximately 28,000 units of French Lentil + Leek Crumbles between April 28 and June 17, 2022, through online sales and retail locations in Chicago and Los Angeles. Subsequently, the company faced a significant crisis when customers began reporting serious health issues, leading to a class action lawsuit.
The timeline of events unfolded rapidly:
June 17, 2022: The company initiated a voluntary product recall after receiving initial illness reports
June 23, 2022: The recall expanded to include all batches of the French Lentil + Leek Crumbles
July 19, 2022: Daily Harvest identified tara flour as the ingredient causing illnesses
The impact was substantial, specifically affecting the company's business performance. We observed that subscriber accounts declined 38% from June 2022 to May 2023, while subscription revenue dropped 33%. Moreover, the FDA received 393 Consumer Adverse Event Reports (CAERS) and Consumer Complaints by October 21, 2022, prompting an FDA investigation into the Daily Harvest outbreak.
The crisis prompted multiple investigations, with Daily Harvest working alongside the FDA and independent laboratories to determine the cause. The incident's severity is further highlighted by more than 300 people filing lawsuits against Daily Harvest and its suppliers, with potential damages exceeding $75 million, emphasizing the significant product liability issues faced by the food delivery service.
Settlement Details and Compensation Categories
Under the $7.67 million settlement agreement, affected consumers can receive compensation through a structured five-category system. Accordingly, the settlement administrator will evaluate claims based on documented injuries and damages, ensuring consumer protection throughout the process.
The compensation categories include:
Category 1A: Consumers who experienced monetary damages from another person's injuries can receive up to $665
Category 1B: Those with direct personal injuries without medical treatment qualify for up to $1,335
Category 2: Individuals who sought medical treatment but weren't hospitalized can receive up to $20,000
Category 3: Those requiring hospitalization may receive up to $40,000
Category 4: Consumers who underwent gallbladder removal surgery can qualify for up to $173,330
The final payment amounts might vary depending on the total number of valid settlement claims submitted. Altogether, claimants must provide supporting documentation, including receipts, medical records, or bills to verify their purchases and injuries. This process ensures fair distribution of the recall compensation and addresses the consumer health concerns raised by the Daily Harvest fiasco.
The settlement received court approval on October 25, 2024, and became effective December 5, 2024. It's important to note that the claim deadline for affected consumers is January 21, 2025, emphasizing the need for timely action in this legal action against Daily Harvest.
Conclusion
All things considered, Daily Harvest's $7.67 million settlement marks a significant response to the 2022 food safety crisis that affected hundreds of consumers. Above all, the company's structured compensation system, offering payments from $665 to $173,330, demonstrates its commitment to addressing various levels of impact on customers. The crisis, which began with the distribution of contaminated Daily Harvest crumbles, led to substantial business consequences, including a 38% decline in subscriber accounts and multiple layoffs.
The settlement process, therefore, provides affected consumers a clear path toward compensation through its five-category system. Consequently, customers who experienced health issues now have until January 21, 2025, to submit their claims with proper documentation.