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US Court: Makers of Equal, Splenda Settle Suit Over Splenda Ads (DJ)

Source: Dow Jones Newswires
14/05/2007

Philadelphia, May 11 - The makers of Splenda and Equal on Friday settled a lawsuit over Splenda's disputed advertising slogan - "Made from sugar so it tastes like sugar."

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The settlement came after the jury announced that it had reached a verdict and seemed poised to award damages to Equal in the fight between the two artificial sweeteners.

Merisant Co., which makes Equal, accused Splenda of confusing consumers into thinking its product was healthier and more natural than other artificial sweeteners. Splenda's marketer, McNeil Nutritionals, countered that it simply has a better product backed by superior advertising.

A McNeil spokeswoman in the courtroom said the amount of the settlement wouldn't be announced. The two sides planned to issue a joint statement later Friday.

Chicago-based Merisant was seeking more than $200 million from McNeil - at least $183 million for unfair profits since 2003 and compensation for at least $25 million in lost sales.

McNeil Nutritionals, a unit of Johnson & Johnson based in suburban Philadelphia, markets Splenda for its manufacturer, London-based Tate & Lyle PLC. It is also defending its Splenda advertising claims in a separate lawsuit in California filed by a group of U.S. sugar manufacturers.



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