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Legal Proceedings
6 Months Ended
Jun. 30, 2011
Legal Proceedings
Legal proceedings


The Company is currently involved in the following legal proceedings:


On February 8, 2010 a lawsuit was filed against Smart Balance, Inc. in the Federal District Court for the Central District in California in Santa Ana, California.  The complaint alleges, among other things, violations of California’s unfair competition law, false advertising, and consumer remedies act and seeks to identify all similarly situated plaintiffs and certify them in a class action. This suit relates to the Company's Nucoa® stick margarine products, which represented less than 1% of sales in 2010 and the first half of 2011. The Company is in the process of vigorously defending itself against this suit. The Company does not expect that the resolution of this matter will have a material adverse effect on its business.


In 2007, three parties filed Oppositions to European Patent No. 0820307 relating to increasing the HDL level and the HDL/LDL ratio in Human Serum by Balancing Saturated and Polyunsaturated Dietary Fatty Acids.  In July 2010, a hearing was held on this matter in Munich, Germany and the patent panel ruled against the Company.  The Company recently received the panel’s written decision and has reviewed its findings. The Company has decided to appeal the ruling.  The Company believes that neither this proceeding, nor its ultimate outcome, will have any material adverse effect on its business.


The Company is not a party to any other legal proceeding that it believes would have a material adverse effect on its business, results of operations or financial condition.