October 2026 changed food and beverage class actions through tougher review of "sugar-free" labels, a major infant-formula deal, and a near-term probiotic claim deadline. Shoppers face more label fights to watch, while only one settlement here offers direct cash to consumers.
Allulose, a sweetener that tastes like sugar but adds fewer calories, sits at the center of the label shift. Federal rules still count it as sugar even when regulators eased enforcement. That gap now drives new filings and copycat risk for brands.
Table of Contents
- Why are "sugar-free" labels facing new lawsuits?
- Do Starbucks protein drinks break the sugar-free rule?
- Who gets money from the Abbott formula deal?
- Should you file a VSL#3 claim before Oct. 20?
Why are "sugar-free" labels facing new lawsuits?
On July 27, 2026, the Seventh Circuit revived Franco v. Chobani and held allulose counts as "sugar" under 21 C.F.R. 101.9(c)(6)(ii). According to the Justia opinion summary, Chobani Zero Sugar yogurt with 4g allulose per serving can therefore face state deception claims. The ruling reversed dismissal on preemption and plausibility, not a final finding of deception.
The Food and Drug Administration had told the court its 2020 guidance only used enforcement discretion to let makers leave allulose off Total Sugars. According to the Morrison Foerster client alert, that policy did not change the regulatory definition covering monosaccharides, including allulose. Enforcement discretion means the agency chose not to punish conduct, not that the conduct became lawful. Companies that relied on that discretion to sell allulose goods as "sugar-free" or "zero sugar" now face copycat consumer cases. Reed Smith reports those suits allege the claims exceed the 0.5g-per-serving limit for sugar-free food. Makers should audit labels rather than rely on non-enforcement alone.
Do Starbucks protein drinks break the sugar-free rule?
Consumers filed a proposed federal class action in Seattle on Oct. 3, 2026 over eight protein lattes and matchas billed as "sugar-free." Reuters reports the venti drinks contain 13-21g sugar from milk lactose. The suit says that violates the federal 0.5g-per-12-ounce rule for sugar-free drink claims. Lactose, the natural sugar in milk, counts toward that limit when a menu promises "sugar-free." A plain latte with milk can still contain measurable sugar even without added syrup.
The case tests whether protein and health framing makes shoppers expect almost no sugar. The filing is only an allegation at this stage. No court has found Starbucks liable, and a proposed class still needs proof and certification. Watch whether plaintiffs pursue lactose cases after the allulose revival.
Who gets money from the Abbott formula deal?
On Sept. 14, 2026, Abbott agreed to pay $384,999,040 to resolve False Claims Act allegations over powdered formula made in Sturgis. According to the U.S. Department of Justice announcement, $348.7 million goes to the United States and $36.3 million goes to states. The government alleged unsanitary conditions and sales to Medicaid and WIC programs.
The False Claims Act, the law that lets the government recover for false bills to federal programs, drove this recovery. Whistleblowers Scott Millard, Kristine Cooper and Loren Cooper will receive $69 million of the federal share. Affected buyers were WIC and Medicaid programs tied to the 2022 shortage and recall, not individual formula purchasers. Food Safety News notes the payment settles allegations with no finding of liability. Individual shoppers should not expect a claim form from this deal. It compensates public programs, while whistleblower awards reward insiders who reported problems.
Should you file a VSL#3 claim before Oct. 20?
VSL will pay $20 million to settle Starr v. VSL Pharmaceuticals for U.S. buyers. According to the settlement notice from Angeion Group, the case concerns VSL#3 bought June 1, 2016 through June 19, 2019 and claims of an unchanged clinically proven formula after reformulation.
Payments run about $20 per unit, with claims due Oct. 20, 2026. Check these points before you file: Late or incomplete claims can lose payment even when the purchase qualifies. If you still hold cartons, order emails, or pharmacy records, gather unit counts now and file before the deadline.
- You bought VSL#3 in the United States during the covered dates.
- You can list the number of units and any proof, such as receipts or orders.
- You submit a valid, timely claim by Oct. 20, 2026.
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