Nov 14 (Reuters) - A federal judge said Kraft Heinz ( KHC )

must face a proposed nationwide class action alleging

that it defrauded consumers by claiming its Kraft macaroni and

cheese, one of its best-known products, contains no artificial

preservatives.

In a decision on Wednesday, U.S. District Judge Mary Rowland

said the Illinois, California and New York consumers leading the

lawsuit plausibly alleged that Kraft Mac & Cheese contained a

synthetic form of citric acid that differed from the natural

variety, and also contained sodium phosphates.

The Chicago-based judge said the plaintiffs specifically

alleged that the ingredients functioned as preservatives, making

Kraft Heinz's ( KHC ) claim of "No Artificial Flavors, Preservatives or

Dyes" on labels false, and cited academic studies and U.S. Food

and Drug Administration guidance to support their case.

"These allegations are enough to withstand a motion to

dismiss," she wrote.

Rowland agreed with Kraft Heinz ( KHC ) that the plaintiffs lacked

standing to demand new labels because they are now aware of its

alleged deceptive practices and face no risk of future harm.

In seeking a dismissal, Kraft Heinz ( KHC ) said there were no

factual allegations that it used artificial preservatives in its

"iconic" Mac & Cheese, or that reasonable consumers would view

its ingredients as artificial.

Kraft Heinz ( KHC ) maintained on Thursday that its Mac & Cheese

contains no artificial flavors, preservatives or dyes.

"We stand fully behind our product and are proud of its

quality," the company said. "We strongly believe that this

lawsuit has no merit and look forward to our day in court."

Lawyers for the plaintiffs did not immediately respond to

requests for comment.

The plaintiffs are seeking damages for fraud, unjust

enrichment, and violations of state consumer protection laws.

Their lawsuit is one of many challenging the accuracy or

precision of food labels.

In July 2023, a Miami federal judge dismissed a lawsuit

accusing Kraft Heinz ( KHC ) of understating how long it took to prepare

microwaveable Velveeta macaroni and cheese.

Kraft Heinz ( KHC ) is based in Chicago and Pittsburgh. Berkshire

Hathaway ( BRK/A ) owns 26.9% of its stock.

The case is Hayes et al v. Kraft Heinz Co ( KHC ), U.S. District

Court, Northern District of Illinois, No. 23-16596.

(Reporting by Jonathan Stempel in New York; Editing by Rod

Nickel and Muralikumar Anantharaman)