Akridge v. Whole Foods Market Group, Inc.

CourtDistrict Court, S.D. New York
DecidedMarch 30, 2022
Docket1:20-cv-10900
StatusUnknown

This text of Akridge v. Whole Foods Market Group, Inc. (Akridge v. Whole Foods Market Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akridge v. Whole Foods Market Group, Inc., (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK HOWARD AKRIDGE, individually and on behalf of all others similarly situated, Plaintiff, OPINION & ORDER – against – 20 Civ. 10900 (ER) WHOLE FOODS MARKET GROUP, INC., Defendant. RAMOS, D.J.: Howard Akridge brings this putative class action under the Class Action Fairness Act of 2005 (“CAFA”), 28 U.S.C. § 1332(d)(2), against Whole Foods Market Group, Inc. (“Whole Foods”)1, alleging that Whole Foods has engaged in a pattern of mislabeling certain prepared foods and thereby failing to identify the presence of allergens. 2 Doc. 16. Akridge seeks injunctive relief and monetary damages for violations of Sections 349 and 350 of the New York General Business Law (“GBL”), as well as related claims for negligent misrepresentation, fraud, breach of warranty, and unjust enrichment. Before the Court is Whole Foods’ motion to dismiss the First Amended Complaint (“FAC”), or in the alternative, for a more definite statement. Doc. 22. For the reasons set forth below, the motion to dismiss is GRANTED. I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY �e following facts are based on the allegations in the FAC, which the Court accepts as true for purposes of the instant motion. See, e.g., Connecticut v. Physicians Health Servs. Of Conn., Inc., 287 F.3d 110, 114 (2d Cir. 2002); Koch v. Christie’s Int’l PLC, 699 F.3d 141, 145 (2d Cir. 2012).

1 Defendant’s moving papers explain that Whole Foods Market Group, Inc., owns and operates the Whole Foods Market stores in New York and several other states, but it does not own or operate all Whole Foods Market stores around the United States. Doc. 23 at 3–4. �e Court will refer to Defendant here as “Whole Foods.” 2 Unless otherwise noted, citations to “¶ _” refer to Akridge’s First Amended Complaint (“FAC”), Doc. 16. A. Factual Background Whole Foods operates nearly 500 stores across North America that sell natural and organic foods, including a range of products in the prepared foods sections of its stores and fresh packaged goods sold under its 365 Everyday Value Brand. ¶¶ 1–2. �ese products include soups, cheeses, bakery products, fish, and prepared entrees. ¶ 3. 1. FDA Warning Letter �e U.S. Food and Drug Administration (“FDA” or “the agency”) issued Whole Foods CEO John Mackey a warning letter on December 16, 2020, as part of the agency’s “ongoing efforts to address undeclared allergens as the leading cause of food recalls in the United States[.]” (the “FDA Warning Letter”).3 ¶¶ 10–12; Doc. 24-1. �e FDA Warning Letter explains that Whole Foods has “engaged in a pattern of receiving and offering for sale misbranded food products,” and that from October 2019 to November 2020, the company “recalled 32 food products due to undeclared allergen(s).” Doc. 24-1 at 1. Whole Foods had a similar pattern of recalling foods that contained undeclared allergens in previous years. Id. �e FDA Warning Letter further states that the products at issue were misbranded within the meaning of § 403(w) of the Food, Drug, and Cosmetic Act (“FDCA”), 21 U.S.C. § 301 et seq., and were therefore in violation of the FDCA’s requirement that finished product labels declare all major food allergens present in the products. Id. �e FDA Warning Letter gave several examples of mislabeled products that had been recalled, including: a prepared minestrone soup product, packaged in plastic deli-style containers or clear plastic bags, for failure to list milk as an ingredient; raspberry cheesecake Italian gelato, packaged in a clear plastic pint container, for failure to list eggs; white Parker House rolls, packaged in a 12 oz. plastic bag, for failure to list milk and eggs;

3 �e Court takes judicial notice of the FDA Warning Letter, which is incorporated by reference in the FAC. Chambers v. Time Warner, Inc., 282 F.3d 147, 152–53 (2d Cir. 2002) (“[T]he complaint is deemed to include any written instrument attached to it as an exhibit or any statements or documents incorporated in it by reference,” as well as documents that are “integral to the complaint.” (internal quotation marks and citations omitted)). �e FAC includes a link to the FDA Warning Letter, along with another link to an FDA webpage with information about food allergies. ¶¶ 10 n.1, 12 n.2. �e FDA Warning Letter is available at https://www.fda.gov/inspections-compliance- enforcement-and-criminal-investigations/warning-letters/whole-foods-market-610862-12162020 and at Doc. 24-1. Chantilly Key Lime Tartlets, packaged in 1 oz. plastic clamshell containers, for failure to list almond flour; and various artisan cheeses, for failure to list eggs. Id. at 2–3. �e FDA Warning Letter concluded that these violations were not “an all-inclusive list,” and that it is Whole Foods’ responsibility to ensure that it complies with all requirements of federal law and regulations. Id. at 3. 2. Akridge’s Claims Consumers with food allergies “diligently check a product’s ingredient list to confirm the absence” of allergens in the food, because food allergies can range in severity from mild symptoms to “sever [sic], life threatening symptoms, often called anaphylaxis, which may involve fatal respiratory problems and shock.” ¶¶ 6–7. Federal and state regulations require that the presence of common allergens in foods, including milk, eggs, fish, crustacean shellfish, tree nuts, wheat, peanuts, and soybeans, be disclosed immediately after the ingredient list, preceded by the word “Contains.” ¶¶ 8–9. Akridge alleges that Whole Foods has a longstanding pattern of violating these requirements and failing to properly disclose the presence of allergens in prepared foods and certain packaged goods sold under its private label brand.4 ¶¶ 10–12, 31–36. Since 2017, there have been at least 33 recalls of Whole Foods items sold in its New York stores due to undeclared soy, egg, milk, peanuts and tree nuts, and other allergens. ¶¶ 13–14. In addition to the recalled foods listed in the FDA Warning Letter, Akridge alleges that, in July 2018, Whole Foods issued a recall on cakes prepared in their on-premises bakeries for failure to list soy. ¶¶ 15–21. Whole Foods also recalled cranberry biscotti, for possible failure to list pistachios, and beef meatballs with marinara sauce, for failure to list parmesan cheese. ¶¶ 22–24. According to experts not identified in the FAC, the “publicly announced recalls are often described as the ‘tip’ of an iceberg,” and there may be many other items that should have been, but were not, subject to

4 Akridge cites to a 2007 Chicago Tribune news article describing how Whole Foods avoided disclosing potential cross-contamination with allergens. �is practice led to “severe allergic reactions in unwitting children,” and the FDA “crack[ed] down on Whole Foods’ practices in 2007.” ¶¶ 31–36. recall. ¶¶ 25–26. Akridge alleges that Whole Foods’ recalls “have been characterized as ‘systemic.’” ¶ 28. He further alleges that the mislabeling is not unique to any particular Whole Foods store or region, and that Whole Foods has reportedly failed to update its computer labeling software, leading to the mislabeling. ¶¶ 29–30. Akridge, who resides in Manhattan, alleges that between October 2018 and November 2020, he “purchased Products5 of the type which have been identified as those for which Defendant failed to properly disclose the required food allergens,” at one or more Whole Foods stores, including the store located on West 125th St. in Manhattan. ¶¶ 53, 55, 62.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Selevan v. New York Thruway Authority
584 F.3d 82 (Second Circuit, 2009)
FW/PBS, Inc. v. City of Dallas
493 U.S. 215 (Supreme Court, 1990)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Morrison v. National Australia Bank Ltd.
561 U.S. 247 (Supreme Court, 2010)
Harty v. Simon Property Group, L.P.
428 F. App'x 69 (Second Circuit, 2011)
Koch v. Christie's International PLC
699 F.3d 141 (Second Circuit, 2012)
Fink v. Time Warner Cable
714 F.3d 739 (Second Circuit, 2013)
Morrison v. National Australia Bank Ltd.
547 F.3d 167 (Second Circuit, 2008)
Humpherys v. Nager
962 F. Supp. 347 (E.D. New York, 1997)
Magee v. Nassau County Medical Center
27 F. Supp. 2d 154 (E.D. New York, 1998)
Kuklachev v. Gelfman
600 F. Supp. 2d 437 (E.D. New York, 2009)
Vaden v. Lantz
459 F. Supp. 2d 149 (D. Connecticut, 2006)
Tasini v. New York Times Co., Inc.
184 F. Supp. 2d 350 (S.D. New York, 2002)
Pelman Ex Rel. Pelman v. McDonald's Corp.
396 F. Supp. 2d 439 (S.D. New York, 2005)
Steel Co. v. Citizens for a Better Environment
523 U.S. 83 (Supreme Court, 1998)
DiMuro v. Clinique Laboratories, LLC
572 F. App'x 27 (Second Circuit, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
Akridge v. Whole Foods Market Group, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/akridge-v-whole-foods-market-group-inc-nysd-2022.