Here's the claims:
"Thus, claims that the 68-year-old whole-grain oat cereal lowers cholesterol and reduces the risk of heart disease and cancer violates federal law, the agency said."
The problem is it DOES lower the levels of bad cholestrol which DOES lower the risk of heart disease and cancer. General Mills is in trouble for repeateing scientifically verified FACTS.
But the problem is right there in your post. General Mills said unequivocally that oats reduce the risk of heart disease, cancer and that they lower cholesterol. Notice that Quaker Oats has been very careful to say that "studies suggest" that oats can do those things. That's the sticking point.