Templeton Rye Spirits has confirmed that the cost of settling claims made against the marketing and labelling of its namesake whiskey could reach US$2.5m.
Last month, the company agreed it would settle a lawsuit that claimed the firm was asserting that its whiskey is made in Iowa. The cap for the settlement has been set at $2.5m.
Templeton Rye said that its whiskey is distilled and aged for four years in Indiana before being moved to Iowa where the company adds "its own proprietary formulation to match the flavour profile of the Kerkhoff recipe", cuts the liquid with filtered water from Templeton, and then bottles it.
In order to process claims from consumers, the company has set up a website. A statement on the site reads: "Defendant denies all allegations of wrongdoing… The defendant is settling to avoid the expense, inconvenience, and inherent risk and disruption of litigation."
Consumers will be able to claim between US$3 and $6 per bottle purchased, depending on proof of purchase, as well as $1 per on-trade drink, up to five drinks.
A court will hold a fairness hearing on 3 December to consider whether to approve the settlement.
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By GlobalDataAccording to the company, final approval would result in "the court (entering) a final order and judgement and dismiss the case against the defendant. Claim forms and payments under the settlement will then be processed and distributed."
In June, Anheuser-Busch InBev secured a settlement of a legal row regarding the labelling of its Beck's beer brand in the US.
