The class action against General Mills accuses the company of defrauding consumers with misleading claims about the benefits that eating Cheerios brand cereal can have in lowering cholesterol.

On May 5, 2009, the Food and Drug Administration sent a letter to General Mills warning the company against making overstatements on the labeling of its Cheerios-brand cereals. The government cautioned that the health claims made on the product's box and the company's Web site violate the Food, Drug and Cosmetic Act (FDCA).

The FDA said Cheerios Toasted Whole Grain Oat Cereal is promoted "for conditions that cause it to be a drug because the product is intended for use in the prevention, mitigation and treatment of disease." Specifically, the FDA found claims made on the product's label classify the cereal as a drug within the meaning of 21 U.S.C. Section 321(g)(1)(B). The FDA referenced claims General Mills made regarding the cereal's ability to significantly lower cholesterol within six weeks.

The plaintiffs argue that General Mills led consumers to believe that Cheerios held unique, drug-quality properties that would reduce total and "bad" cholesterol levels when eaten. The plaintiffs claim that Cheerios is not recognized as safe and effective for use in preventing or treating hypercholesterolemia or coronary heart disease.

The plaintiffs claim that consumers that were misled by the unauthorized nutritional and health-related claims made by General Mills. They argue that consumers who purchased Cheerios did so believing General Mills had the legal right to market Cheerios with the health-related claims.