May 27, 2004 - Immediate Release
PRESS RELEASE
THE ROSSBACHER FIRM
611 Wilshire Blvd., Ste. 1650
Los Angeles, CA 90017
Telephone: (213) 895-6500
Facsimile: (213) 895-6161
E-mail: hhr@rossbacher.xohost.com
www.rossbacherlaw.com
Contact: Henry H. Rossbacher, Esq.
CONSUMER VICTORY IN TRIAL AGAINST LEATHERMAN TOOL GROUP, INC.
Los Angeles Superior Court Judge Victoria Chaney signed on May 27, 2004 the Final Judgment in Colgan v. Leatherman Tool Group, Inc., awarding $13,012,255.50 in restitution to California purchasers of mislabeled multi-tools made by Leatherman.
Plaintiffs alleged that Leatherman had violated the California Unfair Competition Law and Consumer Legal Remedies Act and Section 17533.7 of the Business and Professions Code which, among other provisions, prohibit representing or labeling products as made in the United States when any part is not. Judge Chaney found Leatherman violated the laws when it labeled its products as “MADE IN USA” and “USA.” Judge Chaney found that parts of 22 of Leatherman’s tools were made substantially outside the United States. She held that the “labeling misrepresentations and country of origin claims were wilful, knowing and intentional.”
The Court found Leatherman’s claims “are not accurate on Leatherman tools.” The Court further found that “Leatherman has continued to present and to supply misleading and false information to retailers about country of origin for use in advertising with the purpose of obtaining higher profits by providing patriotic incentives to the potential purchasers.”
In addition to the award of restitution, the Court ordered substantial injunctive relief. Finding “that Leatherman engaged in false and misleading advertising,” the Court has ordered an extensive program of corrective advertising together with a claims program. The Court further ordered Leatherman to notify retailers about the Court’s rulings and to prohibit further false representations to California purchasers.
The Court ordered the following injunctions:
A permanent injunction issues in favor of plaintiffs and the Class against defendant Leatherman Tool Group, Inc. on all causes of action as follows:
a. Prohibitory Injunction - Defendant Leatherman Tool Group, Inc. as well as its officers, principals, agents, servants, employees, successors, assigns and all those in active concert or participation with defendant Leatherman are enjoined and restrained from disseminating in California (through any marking on any multi-purpose hand-held tool, any advertisement, label, packaging, commercial or other promotional activity) any representation that any Leatherman’s multi-purpose tool or any article, unit or part are American made, Made in U.S.A., or statements to that effect, if any multi-purpose tool or any article, unit or part thereof has been entirely or substantially made, manufactured or produced outside of the United States; and
b. Mandatory Injunction - Defendant Leatherman Tool Group, Inc. is ordered:
(1) To disseminate or cause to be disseminated at defendant Leatherman’s cost on Leatherman’s website for a period of six months from the date of entry of this Judgment and in media circulated throughout California for a period of 12 consecutive weeks from the date of entry of this Judgment a corrective announcement disclosing that the 22 Leatherman hand-held multi-purpose tools at issue which were sold in California were not Made in the U.S.A. but were made with some parts utilizing foreign manufacture, labor and processing; and
(2) At defendant Leatherman’s expense, to send the notice approved by the Court on May 12, 2004, to all retailers, internet sellers, wholesalers, and any government entities who sell Leatherman hand-held multi-purpose tools in California within 30 days from entry of this Judgment that the 22 Leatherman tools at issue are not made entirely in the United States but were made with some parts utilizing foreign manufacture, labor or processing (hereinafter “Leatherman’s Notice”); and
(3) To instruct all retailers, internet sellers, wholesalers, and government entities who sell Leatherman hand-held multi-purpose tools in California within 30 days from the date of entry of this Judgment to stop representing in their stores, on their websites, or in any other manner to California residents, that these tools are Made in the U.S.A. or statements to that effect; and
(4) To instruct all retailers, wholesalers, and government entities who sell Leatherman hand-held multi-purpose tools in California within 30 days from the date of entry of this Judgment to return to Leatherman, at Leatherman’s expense, all 22 tools at issue and packaging advertisements relating to such tools which unqualifiedly represent that Leatherman tools are American made, Made in U.S.A., or statements to that effect.
The mandatory and prohibitory injunctions do not apply to qualified “Made in U.S.A.” representations such as “Made in U.S.A. of U.S. and foreign components.”
The Court’s decisions are contained in two rulings issued October 7, 2003, a Statement of Decision issued May 3, 2004, a Judgment issued May 27, 2004, and Orders issued on May 27, 2004, approving the letter to retailers required to be sent by Leatherman and the corrective notice and claims plan. Further proceedings are scheduled before the Court for July 15, 2004.
The Court’s decisions were reached following extensive motion proceedings in the fall of 2003 and a trial in January and February of 2004. Henry H. Rossbacher of The Rossbacher Firm served as chief trial counsel during the trial. Attorneys from the two co-lead class counsel, The Rossbacher Firm and Cuneo, Waldman & Gilbert, LLP participated in the trial.
Copies of the significant decisions by the Court are available to the press from The Rossbacher Firm.
Letter to be sent by Leatherman to vendors
View earlier Notice of Pendency of Class Action
Return to the Rossbacher Main Page