CSPI (Center for Science in the Public Interest) a non-profit consumer protection group, filed a class action law suit on June 12, 2006 asking that KFC be stopped from using partially hydrogenated oil.

"Grilled, baked, or roasted chicken is a healthy food-and even fried chicken can be trans-fat-free," said CSPI executive director Michael F. Jacobson. "But coated in breading and fried in partially hydrogenated oil, this otherwise healthy food becomes something that can quite literally take years off your life. KFC knows this, yet it recklessly puts its customers at risk of a Kentucky Fried Coronary."

Link to press release.

[thanks, Jeff!]