Dannon Settles Lawsuit, $100 to Yogurt-buyers

A familiar yogurt company settled a false advertising lawsuit which will likely result in a sizable payday for its consumers.

The Dannon company decided to reimburse consumers up to $100 for purchases of Activia and DanActive yogurt in addition to changing its marketing and labeling, the Associated Press reports. These actions will settle a class-action lawsuit filed against the company in 2008.

The lawsuit was initially filed alleging the yogurt-makers mislead consumers when they claimed their products could strengthen the body's defenses or regulate digestion.

Company representatives deny any wrong doing, stating that the settlement was made to avoid any further litigation expenses.

As part of the settlement, which awaits approval by U.S. district courts, Dannon will set up a fund totaling $35 million to reimburse those who purchased Activia or DanActive yogurt since the items were first marketed in 2006 and 2007, respectively.

The company stated that it will change its marketing to "increase the visibility of the scientific names of the unique strains of probiotics that are in" each of the products.

In the United States, the Federal Trade Commission is responsible for prohibiting "unfair and deceptive acts or practices in commerce."