Meati, a US startup producing meat alternatives from mycelium, is facing a false advertising class-action lawsuit in the state of New York after a plaintiff alleged that the company’s products are misbranded.
Meati’s packaging claims that the meat alternatives are “Made From Mushroom Root” and contain “95% Mushroom Root Protein”. However, the plaintiff, Mario Burns, alleges that this is false because the products are not predominantly made from mushrooms. Instead, the mycelium used originates from Neurospora crassa, a type of red bread mold. This has been disclosed by Meati on its website.
Burns argued that he would not have paid such a high price for the products had he known they contained Neurospora crassa, and expressed concern that the consumption of this ingredient could cause serious allergic reactions (though research does not appear to support this). The complaint notes that FDA requirements prohibit labeling foods containing mycelium in a way that implies the products contain mushrooms, adding that “mushroom root” is not a recognized scientific term.
Ongoing legal difficulties
Meati previously faced a similar lawsuit in California last year; plaintiff Serena Caldeira claimed that the startup had intentionally misbranded its meat alternatives because internal research showed that consumers would not be willing to buy products made predominantly from mold. However, Meati said at the time that it was already moving away from the term “mushroom root” in favor of “mycelium”, and was in the process of updating its packaging. The lawsuit was settled last month.
In June of last year, a long-running intellectual property dispute between Meati and its competitor The Better Meat Co ended after a judge ruled largely in favor of the latter company.
Despite these legal difficulties, Meati successfully raised over $100 million in a Series C-1 funding round in 2024, and expanded into 2,000 additional retail locations across the United States.
“The backing of our investors, the belief by retailers nationwide, the love from our customers, and the commitment from our employees leave no doubt in my mind that we’re on the right path,” said Meati CEO Phil Graves last year.
