Sara Lee $1 Million Pound Cake Lawsuit: Find out if You Qualify for a Slice of the Settlement

Sara Lee has agreed to settle a case arguing its "all butter" dessert actually uses soybean oil and other shortenings.

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Dan Avery
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Sara Lee All Butter Pound Cake

Sara Lee has agreed to change the name of its "All Butter Pound Cake" to "Classic Pound Cake."

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A class-action lawsuit claims Sara Lee misrepresented the ingredients in its Sara Lee "All Butter Pound Cake," alleging it actually includes soybean oil and other shortenings.

According to plaintiffs in Grayer v. Sara Lee Frozen Bakery, the dessert company, based in the Chicago suburb of Downers Grove, violated Illinois' consumer protection and false advertising laws. In their complaint, they maintain that they wouldn't have paid so much if they'd known the cakes weren't all butter -- and might not have bought them at all. 

As part of the settlement in the case, Sara Lee agreed to a $1 million payout and to stop labeling the cake as "All Butter Pound Cake." Instead, it will be referred to as "Classic Pound Cake."
In an email statement to CNET, Sara Lee denied any wrongdoing and said its decision to settle the false advertising case "to avoid further litigation and distraction of resources from our business."
The email added that Sara Lee products "have always been truthfully marketed and labeled."

Here's what you need to know about the Sara Lee pound cake settlement, including who's eligible for a check, how much money you can get from the agreement and what you need to file a claim. 

For more on class-action cases, see if you're eligible for money from Capital One's $190 million payout, T-Mobile's $350 million data-breach suit or Google's $100 million privacy settlement.

Who's eligible for money in the Sara Lee settlement?

Anyone who bought Sara Lee All Butter Pound Cake products between April 27, 2017, and July 29, 2022, can file a claim.
You can submit your claim online or print out a physical form and mail it here:
Kroll Settlement Administration, Grayer v. Sara Lee
c/o Kroll Settlement Administration LLC
P.O. Box 5324
New York, NY 10150-5324 
The claim form must be submitted by or have a postmark of Oct. 11, 2022, which is also the deadline to request to be excluded from the settlement. 

How much money can I get from the Sara Lee pound cake settlement?

Sara Lee All Butter Pound Cake

Without a receipt you can claim up to $5 from the Sara Lee settlement.

Sara Lee

Valid class members can receive a cash payment of $1 per product based on how many cakes they bought. The minimum payout for any valid claim is $3.

Do I need a receipt to file a claim?

Though you don't need one, you'll get more money if you have a receipt. Without proof of purchase, you can claim up to five pound cakes, for a max payment of $5.
With proof of purchase, you can claim up to 20 products for a top payment of $20.

Regardless of whether you have proofs of purchase, the minimum payout for any valid claim is $3.

When will payments in the Sara Lee pound cake case go out?

A final approval hearing for the settlement is scheduled for Oct. 20, 2022. If the court approves the deal and there are no appeals, payments will be distributed approximately 44 days later.  
According to the settlement site, though, if there are appeals, receiving cash payment "may take months or even years."