Health Benefits of Dannon Yogurt Exposed as False In Lawsuit Filed by Coughlin Stoia...

Health Benefits of Dannon Yogurt Exposed as False In Lawsuit Filed by Coughlin Stoia Geller Rudman & Robbins LLP and Mager & Goldstein LLP

Company's Own Studies Disprove Massive Advertising Campaign
Fraudulently Touting Health Benefits of Activia and DanActive
LOS ANGELES--(Business Wire)--An enormously successful marketing campaign promoting the supposed
health benefits of "probiotic" yogurt products such as Activia and
DanActive helped The Dannon Company, Inc. ("Dannon" or the "Company")
sell hundreds of millions of dollars worth of yogurt in recent years.
However, a class action filed today in the Central District of
California revealed that while spending more than $100 million to
falsely claim that Activia and DanActive have "clinically" and
"scientifically" "proven" health benefits not available in other
yogurts, Dannon's own studies flatly disproved the Company's deceptive
boasts.

According to the lawsuit filed, in its advertisements and on its
label for Activia, Dannon continues to falsely claim that it is
"proven" to improve one's "intestinal rhythm" and "regulate your
digestive system." Similarly, the label and ads for Dannon's DanActive
incorrectly state that it "has been clinically proven to help
naturally strengthen the body's defenses" and to improve the body's
"immune system."

As a result of the massively deceptive advertising campaign,
Dannon is able to charge consumers a 30% premium for its Activia
yogurt. In fact, Dannon's marketing for yogurts containing
"probiotics" led to one of the most successful product launches in
recent food-industry history. Dannon spent more than $100 million on
what is described as a "360-degree marketing plan" to falsely promote
its probiotic yogurts. As a result, Dannon sold $128 million of
Activia in 2006 and is estimated to have sold approximately $300
million last year.

However, Dannon itself knew that numerous scientific studies
failed to support the health benefits touted in the ads. In fact, a
study conducted by leading microbiologists and funded by Dannon
determined in 2006 that there was "no conclusive evidence" of
probiotics providing health benefits. The report, entitled "Probiotic
Microbes: The Scientific Basis," was prepared by the American Academy
of Microbiology, a leadership group of the American Society of
Microbiology.

In an interview with financial analysts, Franck Riboud, the
current Chairman and CEO of Dannon's France-based parent company
Groupe Danone (OTC:GDNNY), admitted that Activia's success was based
solely on the product's fraudulent marketing, saying, "The success of
Activia is not coming from the product itself. The probiotic,
everybody knows now about probiotic all over the world. The success is
coming from the way you launch the product, how do you enrich the
product, the marketing...."

The class action, filed on behalf of tens of thousand of consumers
who paid a premium for the products because of the deception, seeks
redress for consumers who purchased the products based on the bogus
claims, and asks Dannon to replace the misleading marketing with
honest ads that correct the record.

"Deceptive advertising has enabled Dannon to sell hundreds of
millions of dollars worth of ordinary yogurt at inflated prices to
responsible, health conscious consumers," said consumer attorney
Timothy G. Blood. Blood is the lead attorney handling the case for
Coughlin Stoia Geller Rudman & Robbins LLP, the firm serving as
counsel in the case along with Mager & Goldstein LLP. Jayne A.
Goldstein is the lead attorney handling the case for Mager & Goldstein
LLP.

If you believe you may have bought the falsely advertised Dannon
products, please visit www.csgrr.com/dannon to learn more about the
class action and view images of the products and the ads.

Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C.,
Houston and Philadelphia, is active in major litigations pending in
federal and state courts throughout the United States and has taken a
leading role in many important actions on behalf of defrauded
consumers, investors and companies, as well as victims of human rights
violations. Coughlin Stoia lawyers have been responsible for more than
$45 billion in aggregate recoveries. The Coughlin Stoia Web site
(http://www.csgrr.com) has more information about the firm.

Mager & Goldstein LLP is a law firm specializing in complex
commercial class action litigation with offices in Philadelphia,
Pennsylvania, Weston, Florida and Scottsdale, Arizona. Mager &
Goldstein's Web site (http://www.magergoldstein.com) has more
information about the firm.

Coughlin Stoia Geller Rudman & Robbins LLP
Dan Newman, 800-449-4900
dnewman@csgrr.com

Copyright Business Wire 2008