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When it rains, it pours. Just days after it was reported the Whole Foods supermarket chain yanked her Skinnygirl drinks, Bethenny Frankel is now facing a class action lawsuit over just that.
The AP is confirming that not one, but two new class action lawsuits have been filed against the Bethenny Ever After star and Beam — the company that purchased the Skinnygirl drinkline from her for a reported $100 million — alleging they lied to consumers about the contents of the Skinnygirl margarita mix.
Whole Foods released a statement last week confirming it pulled the products because “it contains a preservative that does not meet our quality standards.” Beam also released a statement admitting that while the Skinnygirl Margarita does contain the preservative sodium benzoate, it is in “very low levels.”
TMZ reports that in one of the class action lawsuits filed in California, a consumer claims she and many others were duped by Beam Global Spirits for making “deceptive statements” on the label of Skinnygirl. The label says the drink is “all natural.”
The lawsuit further claims that Beam’s advertisement that the drink is “all natural” and contains no preservatives are false because the drink contains sodium benzoate. Those behind the lawsuit want to force Beam to “engage in a corrective advertising campaign” and pay unspecified damages.
Beam released the following statement in response to the lawsuits: “In today’s litigious society, nothing is surprising. The litigation filed in relation to the labeling of Skinnygirl Margarita is frivolous. We will defend our case vigorously, and we are fully confident we will prevail.”
As for Bethenny, she has yet to respond to the lawsuits though she did defend her drink line yet again this week on her website. Her statement is below -
“We would not sell anything that I don’t personally drink. I’m a natural foods chef and health is a top priority for me and my family. The Skinnygirl Margarita is made with natural ingredients and its label is consistent with U.S. federal regulations, which is why it is carried in stores nationwide and continues to fly off the shelves.
I built my brand on trust and honesty. I don’t take lightly obvious attempts to put my integrity in question. I will always answer your questions and concerns directly and truthfully.”
Photo credit: WENN.com
TELL US – THOUGHTS ON THE CLASS ACTION LAWSUITS? DO YOU THINK IT HOLDS ANY MERIT?
*s/b “Now” not “No”
They can’t touch Bethenny. After selling the product she is now just a Jim Beam employee.
@ Cherry
LOL B cant be over reality TV she says it but she knows deep down that she cant leave it is her only real form of advertisements I watch a lot of TV in my down time and I have yet to see any commercials of her crap she sells. To bad the big wigs at bravo don’t have to balls to put the smack down on her when she trashes there net work the one net work that have made her the All American Bitch that she is
@153 zoso666
I think Bravo sensed a problem with SGM. Andy Cohen used to have a SGM bottle behind him on WWHL. It is no longer there. Also, no ads are running on Bravo for SGM but they do run ads for Jose Cuervo.
The difference between these two products is the market they are targeting. SGM is aiming for the younger female market whereas the Jose Cuervo is targeting tequila drinkers who want less calories, similar to light beer drinkers.
@142 Georgia Cat
Thanks for the comment, but I don’t know that I could be considered a Bethany supporter. I just call them as I see them at the time and I would have posted the same comment whether it was about Bethany or someone else.
There are things I like about her and other things I don’t, one of which is using the word “skinny” in her branding. I think it perpetuates an unhealthy standard as far as weight goes no matter how much she talks about eating healthy.
I do not feel any tug of loyalty toward her or any of the reality TV personalities I comment on because I don’t know them personally. I only know what they, their PR people and the editors of Bravo show us.
One thing I would like to clear up. My post only addressed the *irony* of a group of people who consume alcohol (which I enjoy by the way), which is harmful in itself, going to the trouble of class action suit because the alcohol they want to buy has an unnatural ingredient in it.
I do believe that it should have been made public that the drink has a preservative in it, which makes the claim all natural ingredients deceptive. I just think it would have made more sense to use other avenues, like notifying the FDA, and/or complaining to the company and letting them know the FDA is being notified of this deception. I don’t know what Whole Foods has done, but I hope they at least notified the FDA. I would also say alert the media, but Whole Foods seems to have done that already.
If the company simply refuses to list all the ingredients and the FDA is unresponsive, *then* file a lawsuit, even if makes you look like a hypocrite. I realize there comes a point when you just have to force an issue no matter what.
I don’t know this, but if the company has agreed to change their listed ingredients on all future bottles, then continuing to pursue this lawsuit is truly an indication that all the plaintiffs want is money.
In an attempt to revive this thread,
Here are two stories, Bethenny related:
http://www.hollywoodnews.com/2011/09/09/questions-about-bethenny-frankels-new-york-home/
http://thestir.cafemom.com/baby/125645/bethenny_frankel_expects_too_much
Oh look, how did RT miss this:
http://www.radaronline.com/exclusives/2011/09/why-120-million-bethenny-frankel-getting-a-mortgage
@Cherry: Thanks for your links and providing interesting reading so often. Why would you take on a 30 year mortgage if you did not have to?? Something is so off
@158 HHG
Curious isn’t it?
Someone on radaronline posted that Bethenny probably did not list the property in her name for tax reasons, although I can’t think of any besides hiding assets from potential liability claims.
Just because the documents are signed by someone other than Bethenny or Jason does not mean they don’t “own” the property. She could have given power of attorney to another. Apparently the property is listed in her name or no one would have been able to search the mortgage related to the property? Regardless, payment of real estate taxes cannot be avoided. It doesn’t matter how the title is held, the property tax is still due.
However, there could be benefits to taking a partial mortgage in terms of using personal tax deductions. Maybe she needs to hang on to some deductions? Another guess as to why she partially mortgaged the property would be because she is not receiving the full amount from Beam up front. It has been reported elsewhere that deals such as this don’t pay all the money up front. Ramona Singer estimated that B received 20 to 30 million up front with the remainder to be paid over a succession of years based on sales and other factors. 20 to 30 million dollars can go quickly if you need to reinvest in other ventures, buy lavish homes in NYC and L.A. and travel extensively to promote your businesses.
@160 CeeJay
Her mortgage deductions would be low. She would be better off with a 15 year mortgage. However, maybe she is not planning on staying in NYC or thinks she can flip the place quickly for a profit.
Can’t you search property records by address?
I think the gist of these stories is that Bethenny did not get the payout reported by anonymous sources. Bethenny said she made $55 mil last year in the Forbes cover story.
The travel expenses for her ventures–if Beam related probably picked up by Beam.
And yes of course she’ll have to pay property tax. No one was suggesting she wouldn’t. It is just curious as to why none of the documents are in her or Jason’s name.
Much ado about nothing. Jill’s probably behind it.
The mortgage interest deduction on 2 million would be substantial. Not claiming to be a know it all when it comes to real estate, but I do have a real estate investment business (insert chuckle here…yes, the last few years have been challenging…lots of rentals, not too many sales) and hold title to my properties in a variety of ways. I do what my tax accountant and real estate attorney tell me to do to best maximize my tax deductions and income. J & B may have been advised to process the papers this way…just don’t know why. As for the 30 year mortgage, they will pay more interest than principle in the early years, hence a higher mortgage interest tax deduction. Also, when I was younger I also used 30 year mortgages for this reason AND because I didn’t plan on hanging onto the properties. As I’ve gotten older I like to hold less debt on my properties so I’ve paid off some and converted others to 15 or even 10 year loans. I would assume that Bethenny is being advised to protect her assets from lawsuits such as those now being lobbed at her. Those laws change periodically and people of wealth use the laws to their benefit.
Rest assured that however she’s set up her assets and liabilities she’s being advised by the best.
@163 CeeJay
I see what you are saying but even a mortgage tax deduction to cover her share of the sale proceeds, and the sale occurred in the current year would amount to peanuts.
Mortgage tax deductions are not the great deduction as they were when the interest rate was higher. But back in those days, sales prices were not as high.
I agree there is some reason why she did it this way–just not clear as to why. Thinking about it, if she wanted to protect her asset from possible suits, she could have placed the property in a trust–and then again maybe that is what she is working on doing.
152 Not true. She has made very public claims about the product and is seen visibly selling the product at Costco and such…..she most certainly can be held accountable.
The Snapple Case
http://www.masstortdefense.com/2011/02/articles/snapple-prevails-in-all-natural-suit/
I hope they sue the pants off of her
and Lou is psychotic
I think KARMA is having its day! Finally!!
Frivolous lawsuit is right!!
The Karma is starting…..Snarky beeyatch
Glad she got some fillers for that mjg. Yuk. You know she doesn;t eat.
Wonder if Jim Beam is wishing they didn’t shell out all those overpaid millions to B for this product now. I was shocked that they did it in the first place, I tried it once and it is really not all that. Wouldn’t buy it again anyway.
@123… you are a moron. I will gladly contrast and compare my CV with yours. Do you even know what that is?
You blather on and refuse to acknowledge that posts have time stamps which proved what a loser you are. The truth hurts, and you look foolish because you are. That’s all.
I’m not fragile at all. You tell yourself that to puff yourself up because you are a nobody and neither well written or educated. Got it?
Wow so many haters out there. Bethanny you are my idol! I wish i could accomplish as much -then I wouldn’t have time or need to be on this forum…Hahahaha! I love how witty and funny she is. She’s quick and so so so smart! She cracks me up! Theresa and Nene?…..yeah…. i have trouble… understanding… them…
You go mama keep bringing in the $$$! I understand how she’s so tough sometimes-she practically had to rely on herself! That’s why she’s successful–and not flakey-like Jill and others..
I think this is a frivolous lawsuit. First, Bethenny no longer owns Skinny Girl. If Jim Beam changes the recipe, that is out of her hands. Jim Beam is in charge of the label, the ingredients — everything. Second: why so much Bethenny hate? I think Bethenny is great: a role model, and funny as heck. She has done more in her life than most of you will ever dream of doing. Have any of you built up a business from nothing and sold it for that much money? Didn’t think so. Do any of you know what it might be like if after doing so the new owner decided to make a change in the ingredients? After all, it is their product now and their right to do so. RealityTea should be sued for libel for their headline as though this is a lawsuit against Bethenny when it is a suit against the NEW OWNERS of Skinny Girl. And I hope they do not prevail as I believe it to be a ridiculously frivolous lawsuit. There is too much suing going on. And too much trash talking from the looks of it around here.
Anyone who EVER thought that a product that can stand on a shelf for over two weeks completely unspoiled is “all natural” just shows how stupid they truly are. Sodium benzoate is an additive (meaning ‘added after product composition’) and is not a part of the drink’s recipe to taste, it simply renders the liquid product “shelf-stable”.
Increase those chances girls!!!
What we’re looking at here is a play on words…. it’s not illegal and if all the fat cracks out there actually spent time educating themselves they wouldn’t feel so diluted (heheh, ANOTHER play on words for you there). STOP demanding that everyone around you make your life easier and educate YOURSELF. Do some research on sodium benzoate & you’ll find that 90% of all drinks sold in stores (other than water) contain this additive. So pull your panties out of a wad, clear your head, & hey….. go add Ocean Spray, Minute Maid, & Coca Cola to your class action