Court reinstates lawsuit against retailers over organic milk

A federal appeals court has reinstated a nationwide lawsuit accusing Target, Wal-Mart and other major retailers of misleading consumers about organic milk.

The ruling by the U.S. Eighth Circuit Court of Appeals in St. Louis partially reverses a lower court's 2009 decision to dismiss a lawsuit that had consolidated nearly 19 separate class-action complaints.

The plaintiffs accused Target and other retailers of marketing milk as organic when it actually was not. The milk came from Aurora Organic Dairy in Colorado.

In 2007, the U.S. Department of Agriculture alleged the dairy had not followed standards for organic products. Target spokeswoman Amy Reilly would not comment on the litigation but offered reassurances about the company's organic groceries.

"We've not carried Aurora Milk since May 2008. We're confident that we provide organic products that meet our guests' expectations," she said.

The USDA says organic milk accounts for about three percent of all milk sales.