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Sep 9, 2012 10:15 PM by Alyse Rzemek

Boulder-based dairy settles class-action suit

BOULDER, Colo. (AP) - Boulder-based Aurora Organic Dairy, which supplies many U.S. grocery chains, has agreed to a $7.5 million settlement in a five-year-old consolidated class-action lawsuit against the company.

The lawsuit was initially filed on behalf of two St. Louis-area mothers in 2007 who claimed the dairy used unfair and deceptive practices to sell non-organic milk at organic prices. It also alleged the company's milk didn't live up to USDA organic standards.

In 2009, a federal judge in St. Louis dismissed the suit, saying Aurora's products had been deemed organic by a USDA-accredited certifying agent.

Company spokeswoman Sonja Tuitele tells The Daily Camera the dairy never did anything wrong, but it had grown weary of litigation and wanted to settle the case, which had become a "distraction."

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