The Hershey Company (HSY) is facing a legal challenge over the packaging of its beloved Reese’s peanut butter candies. The company has filed a motion to dismiss a class action lawsuit alleging that it misled consumers about the product’s appearance.
The lawsuit, filed in Florida, claims that consumers were disappointed by discrepancies between the packaging and the actual candy, citing examples such as pumpkin-shaped candies missing eyes and crooked mouths, and a football-shaped candy resembling an egg due to missing stitching.
Hershey, in its defense, argues that the lawsuit is baseless and rooted in consumers’ subjective interpretations of the packaging. The company maintains that the product’s quality and taste were never compromised, stating, “Not a single plaintiff claims the product was unfit for consumption or was anything other than what consumers have come to love and expect from this iconic brand–a delicious treat.”
The plaintiffs, Nathan Vidal, Debra Kennick, Abdjul Martin, and Eduardo Granados, are seeking at least $5 million in damages.
This legal battle comes on the heels of Hershey’s recent second-quarter earnings report, where it reported a 36.8% decline in earnings per share (EPS) to $1.27, missing analysts’ expectations. Sales also fell short, reaching $2.07 billion, compared to the expected $2.31 billion.
Investors interested in gaining exposure to the Hershey stock can consider ETFs like the Vesper US Large Cap Short-Term Reversal Strategy ETF (UTRN) and the First Trust Nasdaq Food & Beverage ETF (FTXG).
HSY shares are currently up 0.45% at $200.70 in premarket trading.
