Bueno v. Merck & Co., Inc.

District Court, S.D. California·Decided September 8, 2022·No. 3:22-cv-00522·Unknown

Opinion

SPENCER BUENO, an individual, and Case No.: 3:22-cv-00522-H-BLM RICHARD PARKER, an individual,

Plaintiffs, ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ v. MOTION TO DISMISS MERCK & CO., INC., a New Jersey

Corporation; MERCK SHARP & DOHME LLC1, a New Jersey [Doc. No. 6.] Corporation; ORGANON & CO., a Delaware Corporation; ORGANON LLC, a Delaware Limited Liability Company; and DOES 1-10, inclusive, Defendants. On March 3, 2022, Plaintiffs Spencer Bueno (“Bueno”) and Richard Parker (“Parker”) filed their complaint in the Superior Court of the State of California, County of San Diego. (Doc. No. 1-2, “Compl.”) The case was subsequently removed and then transferred to this Court. (Doc. No. 7.) Prior to transfer, on April 22, 2022, Defendants Merck & Co., Inc. (“Merck”), Merck Sharp & Dohme LLC (“MSD”), Organon & Co., and Organon LLC filed a motion to dismiss the complaint. (Doc. No. 6.) Plaintiffs filed an 1 Plaintiffs named Merck Sharp & Dohme Corp. as a defendant in this suit. In their reply brief, Defendants informed the Court that Merck Sharp & Dohme Corp. is now known as opposition on May 9, 2022. (Doc. No. 8.) On May 23, 2022, Defendants filed a reply in support of their motion. (Doc. No. 14.) Pursuant to its discretion under Local Rule 7.1(d)(1), the Court determined that Defendants’ motion was fit for resolution without oral argument and submitted the motion on the Parties’ papers. (Doc. No. 15.) Defendants Merck and MSD (the “Merck Defendants”) are New Jersey corporations that manufacture and sell pharmaceutical drugs. (Compl. ¶ 12-13.) One of these drugs is Singulair, which includes the active ingredient montelukast. (Id. ¶ 2.) Merck patented Singulair in 1996 and the Merck Defendants began selling Singulair in 1998 after it was approved by the FDA. (Id. ¶¶ 2, 28.) The Merck Defendants were the exclusive manufacturers, distributors, and sellers of Singulair from 1998 to mid-2012. (Id. ¶ 13.) On August 3, 2012, Merck’s patent expired and generic montelukast drugs entered the market. (Id. ¶ 28.) At some point after March 4, 2020, the Merck Defendants assigned some unspecified rights, liabilities, or control over Singulair to their subsidiary, Organon & Co., and its subsidiary, Organon LLC (the “Organon Defendants”). (Id. ¶ 14.) The Organon Defendants are organized under the laws of Delaware and have their principal places of business in New Jersey. (Id.) Singulair is prescribed for the treatment of asthma, the prevention of exercise- induced bronchoconstriction, and relief of symptoms of allergic rhinitis. (Id. ¶ 1.) Plaintiffs claim they have developed neuropsychiatric injuries “as a result of ingesting . . . Singulair.” (Id.) Plaintiff Spencer Bueno was “prescribed Singulair from 2019 to 2021.” (Id. ¶ 8.) Bueno’s prescriptions “were filled with brand and/or generic Singulair.” (Id.) Bueno “used Singulair as prescribed” and “suffered neuropsychiatric injury including depression, anxiety, and suicidality.” (Id.) Plaintiff Richard Parker was “prescribed Singulair from 2018 to 2020.” (Id. ¶ 9.) Parker’s prescriptions “were filled with brand and/or generic Singulair.” (Id.) Parker “used Singulair as prescribed” and “suffered neuropsychiatric injury including suicidality, depression, and a suicide attempt.” (Id.) Plaintiffs are residents of San Diego County, California and “were prescribed Singulair in California, . . . ingested Singulair in California and sustained injuries therefrom in California.” (Id. ¶ 7.) Plaintiffs allege that if their prescribers had known that Singulair would cause neuropsychiatric events, then their prescribers would not have prescribed Singulair. (Id. ¶ 11.) Plaintiffs allege that the Defendants ignored evidence that Singulair causes neuropsychiatric events. (Id. ¶ 2.) The Singulair label originally contained no warnings regarding neuropsychiatric events. (Id. ¶ 3.) Since its introduction, Defendants have added warnings to Singulair’s product label. (Id.) On March 4, 2020, the Food & Drug Administration required that the strongest type of warning (a “Black Box Warning”) be added to Singulair’s label regarding neuropsychiatric events. (Id.) Plaintiffs assert claims for design defect (Count I), failure to warn (Count II), negligence (Count III), negligent misrepresentation (Count IV), breach of express warranty (Count V), and breach of implied warranty (Count VI). (Id. ¶¶ 104-234.) Defendants move to dismiss all claims pursuant to Fed. R. Civ. P. 12(b)(2) on the basis that this Court lacks personal jurisdiction over them and most claims pursuant to Fed. R. Civ. P. 12(b)(6) on the basis that Plaintiffs have failed to state a claim for which relief may be granted. As an initial matter, Plaintiffs concede that their design defect claim (Count I) and manufacturing defect claim (part of Count III) should be dismissed for failure to state a claim. (Doc. No. 8 at 1-2.) Accordingly, the Court dismisses those claims. The Court will now turn to the disputes between the parties. I. Plaintiffs’ Allegations Concerning Their Use of Singulair The Court begins with Plaintiffs’ allegations that they ingested Singulair rather than generic montelukast. This allegation is central to Defendants’ motion. Defendants only dispute personal jurisdiction if Plaintiffs ingested generic montelukast. Further, Plaintiffs concede that if they only ingested generic montelukast, then their claims for breach of express warranty (Count V) and breach of implied warranty (Count VI) should be dismissed. The Court begins with the pleading requirements of Rule 12(b)(2). Plaintiffs bear the burden of demonstrating personal jurisdiction, but they are only required to make a “prima facie showing of jurisdictional facts” to withstand dismissal. In re W. States Wholesale Natural Gas Antitrust Litig., 715 F.3d 716, 741 (9th Cir. 2013) (citations omitted). Further, the Court “must accept as true all uncontroverted allegations in the plaintiff’s complaint and must resolve all disputed facts in favor of the plaintiff.” Burri Law PA v. Skurla, 35 F.4th 1207, 1213 (9th Cir. 2022) (citations omitted). The Court may consider evidence in affidavits and declarations in determining personal jurisdiction and it “may not assume the truth of allegations that are contradicted by affidavit.” Macias v. LG Chem Ltd., 2021 WL 780478, at *1 (C.D. Cal. Feb. 28, 2021) (citations omitted). Plaintiff Spencer Bueno alleges that he was “prescribed Singulair from 2019 to 2021.” (Compl. ¶ 8.) Bueno “used Singulair as prescribed” and “suffered neuropsychiatric injury including depression, anxiety, and suicidality.” (Id.) Plaintiff Richard Parker alleges that he was “prescribed Singulair from 2018 to 2020.” (Id. ¶ 9.) Parker “used Singulair as prescribed” and “suffered neuropsychiatric injury including suicidality, depression, and a suicide attempt.” (Id.) Plaintiffs are residents of San Diego County, California and “were prescribed Singulair in California, . . . ingested Singulair in California and sustained injuries therefrom in California.” (Id. ¶ 7.) However, Plaintiffs also express some uncertainty regarding whether they ingested Singulair. For example, Bueno and Parker allege that their prescriptions “were filled with brand and/or generic Singulair.” (Id. ¶¶ 8-9.) Plaintiffs acknowledge that their breach of warranty claims are only viable to the extent they used Singulair and concede that “[i]f discovery shows that Plaintiffs used only generic montelukast, Plaintiffs will dismiss the warranty claims.” (Doc. No. 8 at 23.) Defendants contend that Plaintiffs fell short of alleging that they ingested Singulair. (Doc N

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