• April 19, 2011

An Alabama-based law firm has voluntarily dropped a class-action lawsuit against Yum Brands chain Taco Bell, filed in January in California.  The suit alleged that the chain's seasoned beef filling did not meet federal standards for being termed "beef."

Taco Bell CEO Greg Creed was quoted as saying that, while the abandonment of the suit "sets the record straight," he wished that the firm, Beasley Allen (Montgomery) had contacted the chain before filing and publicizing a suit that made false claims and disparaged the brand.

The chain is not changing its products or advertising claims, but the law firm claimed it is dropping the suit because Taco Bell has made "certain changes" regarding its disclosures and marketing of the seasoned beef fillings.

Taco Bell spent $3 million to $4 million in advertising to convey the facts about its products and counter the lawsuit's claims, Creed reported.