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Kona Brewing Co. soon could be providing customers a cash rebate in addition to the “liquid aloha” advertised by the beer company. Read more

Kona Brewing Co. soon could be providing customers a cash rebate in addition to the “liquid aloha” advertised by the beer company.

Consumers who purchased packages of Kona Brewing beer since early 2013 would be eligible for rebates up to $20 per household under a proposed settlement of a class-action lawsuit that alleged customers were misled as to where Kona Brewing made its bottled and canned beers.

Under the settlement proposal agreed to by Kona Brewing parent Craft Brew Alliance Inc., the rebate ranges from $1.25 for a four-pack or six-pack to $2.75 for a case, with a per-household cap of $10 for customers without any proof of purchase or $20 with proof of purchase.

If approved by a judge, the settlement would resolve a 2017 lawsuit filed in California alleging that consumers were led to believe Kona Brewing’s packaged beer was made in Hawaii, and therefore paid a premium price for the beer.

Kona Brewing, which was founded in Hawaii in 1994 and sold to Oregon-based Craft Brew in 2010, makes draft beer in Hawaii. But its canned and bottled beers are made on the mainland.

In addition to a rebate, the settlement calls for changes to Kona Brewing beer packaging and $2.9 million for attorneys representing plaintiffs.

Consumers who bought packaged Kona beer sold in the United States from Feb. 28, 2013, until the date a settlement is tentatively approved are eligible, according to the settlement agreement filed last week.

Kona Brewing may terminate the agreement if more than 1 million claims are submitted. However, attorneys representing plaintiffs anticipate that 78,000 to 546,000 claims will be filed from the pool of roughly 7.8 million class members.

Filing a claim would be done through a settlement website with a 90-day deadline. A hearing for a judge to consider the settlement is scheduled for June 13.