Legal Grains of Truth
While the companies denied wrongdoing, both sides acknowledged the risks and costs of prolonged litigation, including potential roadblocks from collective bargaining agreements and the difficulty of proving exact times spent on preshift duties.
“If forced to litigate this case further, the parties would certainly engage in complex, costly, and protracted wrangling,” the motion said.
Judge Jonker retained some skepticism about the fee structure—approving $491,666.66 in attorneys’ fees, or one-third of the total fund—but critiqued the reliance on the percentage-of-the-fund method. He argued that the lodestar method, which focuses on hourly rates, was better suited to FLSA cases where recoveries are relatively modest. Still, he approved the fee, noting that both calculations aligned closely in this case.
Corporate Shake-Up Looms
The ruling comes on the heels of a massive corporate move: Ferrero’s $3.1 billion agreement to take WK Kellogg private, announced earlier this month. Though unrelated to the lawsuit, the timing adds intrigue to the company’s evolving public image and labor practices.
WK Kellogg was spun off from Kellogg Co. in 2023 as its North American cereal division, while Kellanova took over the global snack portfolio.
