August 28, 2016 5:22 AM ET

Food Products

Company Overview of Dakota Growers Pasta Company, Inc.

Company Overview

Dakota Growers Pasta Company, Inc. manufactures pasta for retail private label, foodservice, and ingredient customers. The company offers pasta cuts, including long cuts, elbows, tubes, shells, twists, soup cuts, egg noodles, and specialty cuts. It provides pastas in various, such as in whole grain, whole wheat, multigrain with Omega-3, and organic. The company was founded in 1991 and is based in Carrington, North Dakota. As of January 1, 2014, Dakota Growers Pasta Company, Inc. operates as a subsidiary of Post Holdings, Inc.

One Pasta Avenue

PO Box 21

Carrington, ND 58421

United States

Founded in 1991

445 Employees

Phone:

952-460-7401

Fax:

701-652-3552

Key Executives for Dakota Growers Pasta Company, Inc.

Chief Executive Officer, President and Member of Nomination Committee
Age: 61
Chief Financial Officer, Chief Accounting Officer and Company Secretary
Age: 45
Compensation as of Fiscal Year 2016.

Dakota Growers Pasta Company, Inc. Key Developments

Dreamfields Purchasers Files a Class Action Lawsuit, Against Dakota Growers Pasta Co

Dakota Growers Pasta Co. produces, markets and sells Dreamfields pasta. Several Dreamfields purchasers filed a class action lawsuit, alleging that Dakota Growers deceptively marketed its product as a healthy alternative to traditional pasta. Advertisements for Dreamfields stated that it had a lower glycemic index than traditional pasta and contained only five grams of digestible carbohydrates. The parties engaged in mediation and reached a settlement agreement. Dakota Growers agreed to create a settlement fund of $5 million and to remove the challenged advertising for a period of one year. Additionally, Dakota Growers agreed to pay attorneys' fees and expenses of $2.9 million separate and apart from the settlement fund. The district court concluded that approval of the settlement agreement was appropriate. Continued litigation would involve significant time and money. Extensive discovery and motion practice could ultimately culminate in a complicated and lengthy trial. While settlement was reached early in the litigation, the plaintiffs conducted enough research and investigation into the factual and legal basis for their claims to assess the merits of the case and the value of the settlement. The district court found there was a risk in proceeding to trial. The case would likely end up being a battle of the experts. The settlement provided meaningful relief without the delay of protracted litigation. The plaintiffs faced the risk of not obtaining and maintaining a certified class if the case proceeded to trial. The district court noted that if a class was not certified for settlement purposes, very few class members would have the resources to pursue claims individually. The requested fee award of $2.9 million was reasonable. Even if the parties agreed that fees would come from the common fund, the fee award would be approximately 36.8% of the cash value of the fund. The district court observed that fees in the 30% range are not uncommon in the Third Circuit. The injunctive relief that class members would receive underscored the reasonableness of the percentage. The settlement agreement, as a whole, was fair, adequate and reasonable. The district court awarded $2.9 million in fees, noting that the fee award adequately compensated counsel for their experience, the risk of nonpayment when undertaking the case and the benefits they obtained for the class.

Similar Private Companies By Industry

Company Name Region
\EV RANCH LLLP United States
1-2-3 Gluten Free, Inc. United States
18th Street Deli, Inc. United States
2 Chicks with Chocolate, Inc. United States
2 P Cattle Co. United States

Recent Private Companies Transactions

Type
Date
Target
No transactions available in the past 12 months.
 

The information and data displayed in this profile are created and managed by Capital IQ, a Standard & Poor's company. Bloomberg.com does not create or control the content. For inquiries, please contact Capital IQ directly by clicking here.

Stock Quotes

Market data is delayed at least 15 minutes.

Company Lookup

Most Searched Private Companies

Company Name Geographic Region
Lawyers Committee for Civil Rights Under Law United States
NYC2012, Inc. United States
Bertelsmann AG Europe
Rush University United States
The Advertising Council, Inc. United States

Sponsored Financial Commentaries

Sponsored Links

Request Profile Update

Only a company representative may request an update for the company profile. Documentation will be required.

To contact Dakota Growers Pasta Company, Inc., please visit www.dakotagrowers.com. Company data is provided by Capital IQ. Please use this form to report any data issues.

Please enter your information in the following field(s):
Update Needed*

All data changes require verification from public sources. Please include the correct value or values and a source where we can verify.

Your requested update has been submitted

Our data partners will research the update request and update the information on this page if necessary. Research and follow-up could take several weeks. If you have questions, you can contact them at bwwebmaster@businessweek.com.