Caldwell v. Nordic Naturals, Inc.

CourtDistrict Court, N.D. California
DecidedJanuary 2, 2024
Docket3:23-cv-02818
StatusUnknown

This text of Caldwell v. Nordic Naturals, Inc. (Caldwell v. Nordic Naturals, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caldwell v. Nordic Naturals, Inc., (N.D. Cal. 2024).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 CHERYL CALDWELL, Case No. 23-cv-02818-EMC

8 Plaintiffs, ORDER GRANTING IN PART AND 9 v. DENYING IN PART DEFENDANT'S MOTION TO DISMISS 10 NORDIC NATURALS, INC., 11 Defendants. Docket No. 21

12 13 Plaintiff Cheryl Caldwell has filed a putative class action on behalf of herself and a 14 nationwide class of those similarly situated against Defendant Nordic Naturals, Inc., based on the 15 sale of its dietary supplement product “Ultimate® Omega 2X.” Compl. ¶ 12. Plaintiff claims that 16 Defendant’s use of “2X” in conjunction with “Ultimate Omega” on the front of the package 17 misleads consumers into thinking that there is double the amount of omega-3 (“omega”) per 18 serving than the amount of omega in the Nordic Naturals product named “Ultimate® Omega.” 19 Compl. ¶ 12. This matter is before the Court on Defendant’s motion to dismiss for failure to state 20 a claim pursuant to Fed. R. Civ. P. 12(b)(6) (“Def.’s Mot.”). 21 Defendant argues that the Court should dismiss the following claims by Plaintiff: (1) 22 California consumer protection statute claims; (2) claims for breach of express and implied 23 warranty; (3) claims asserting quasi-contract, unjust enrichment, and restitution; (5) claims for 24 injunctive relief; and (6) claims by absent non-Californian class members for want of standing. 25 For reasons stated below, the Court hereby GRANTS Defendant’s motion to dismiss 26 Plaintiff’s quasi-contract, unjust enrichment, and restitution claims with leave to amend and grants 27 Defendant’s motion to dismiss claims for injunctive relief without leave to amend. The Court 1 I. FACTUAL & PROCEDURAL BACKGROUND 2 Plaintiff Cheryl Caldwell alleges, on behalf of herself and a nationwide class of those 3 similarly situated, that the labeling of Nordic Natural’s dietary supplement product “Ultimate® 4 |} Omega 2X” is deceptive. Compl. Jf 1-5, 12. Nordic Naturals sells two products (among others) 5 || named Ultimate® Omega (“Ultimate Omega”) and Ultimate® Omega 2X (“Ultimate Omega 6 || 2X”). Compl. § 12. Plaintiff alleges that the “2X” on the product in question misleads reasonable 7 consumers to believe that the product “has twice the amount of Omega-3s per serving than that 8 || found in Defendant’s regular Ultimate Omega product.” Compl. § 12. Ultimate Omega contains 9 1280 mg of omega per serving, while Ultimate Omega 2X contains 2150 mg. Compl. □ 14. 10

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22 || Id. Mathematically, for Ultimate Omega 2X to have double the amount of omega per serving than 23 Ultimate Omega, the 2X product would contain 2560 mg of omega (i.e., 1280 mg multiplied by 24 || two). Compl. { 14. Because Ultimate Omega 2X only contains 2150 mg per serving, Plaintiff 25 alleges that it has 16% less omega than represented by Nordic Naturals. Compl. 14, 15. 26 |} // 27 // 28 |] //

1 On or around July 2022, Plaintiff purchased Ultimate Omega 2X from a San Francisco 2 Whole Foods Market. Compl. ¶ 9. According to Plaintiff, she purchased the product under the 3 impression that it contained twice the amount of omega per serving than the Ultimate Omega 4 product did, based on the “2X” and “Ultimate Omega” descriptions on the front of the package. 5 Compl ¶ 9. Plaintiff alleges that had she known that it did not contain double the omega per 6 serving, she would not have purchased Ultimate Omega 2X. Compl. ¶ 9. 7 II. LEGAL STANDARD 8 Under Federal Rule of Civil Procedure 12(b)(6), a defendant may move to dismiss for 9 failure to state a claim for relief. See Fed. R. Civ. P. 12(b)(6). To overcome a Rule 12(b)(6) 10 motion to dismiss after the Supreme Court’s decisions in Ashcroft v. Iqbal, 556 U.S. 662 (2009) 11 and Bell Atlantic Corporation v. Twombly, 550 U.S. 544 (2007), a plaintiff’s “factual allegations 12 [in the complaint] ‘must . . . suggest that the claim has at least a plausible chance of success.” 13 Levitt v. Yelp! Inc., 765 F.3d 1123, 1135 (9th Cir. 2014). The court “accept[s] factual allegations 14 in the complaint as true and construe[s] the pleadings in the light most favorable to the nonmoving 15 party.” Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). “A 16 claim has facial plausibility when the Plaintiff pleads factual content that allows the court to draw 17 the reasonable inference that the Defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. 18 at 678. “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more 19 than a sheer possibility that a defendant has acted unlawfully.” Id. (quoting Twombly, 550 U.S. at 20 556). 21 III. DISCUSSION 22 A. Plaintiff’s CLRA, FAL and UCL Deceptive Label Claims 23 Plaintiff alleges three claims that require finding that the Ultimate Omega 2X label is 24 misleading to a reasonable consumer. Specifically, the California Unfair Competition Law 25 (“UCL”) prohibits “unlawful, unfair or fraudulent” business practices. Cal. Bus. & Prof. Code § 26 17200. The California False Advertising Law (“FAL”) prohibits “untrue or misleading” 27 1 advertisements. Id. § 17200.1 And the California Consumer Legal Remedies Act (“CLRA”) 2 prohibits “unfair or deceptive acts or practices.” Cal. Civ. Code § 1770.2 As explained by the 3 Ninth Circuit in Williams v. Gerber Products Company, “[a]lthough the statutes differ slightly, the 4 basic inquiry is the same: Would the defendant’s marketing likely mislead a reasonable 5 consumer?” 552 F.3d 934, 939 (9th Cir. 2009). Thus, “to state a viable claim under any of those 6 statutes, Plaintiffs must allege facts showing that the advertisement in question is misleading to a 7 reasonable consumer.” Chuang v. Dr. Pepper Snapple Grp., Inc., 2017 WL 4286577, at *3 (C.D. 8 Cal. Sept. 20, 2017) (citing Williams, 552 F.3d at 938). 9 The Ninth Circuit recently discussed the reasonable consumer standard in McGinity v. 10 Procter & Gamble Company:

11 [the reasonable consumer] standard requires that Appellants show that members of the public are likely to be deceived . . . The 12 reasonable consumer standard requires more than a mere possibility that the label might conceivably be misunderstood by some few 13 consumers viewing it in an unreasonable manner. . . . Rather, the reasonable consumer standard requires a probability that a 14 significant portion of the general consuming public or of targeted consumers, acting reasonably in the circumstances, could be misled. 15 The touchstone under the “reasonable consumer” test is whether the product labeling and ads promoting the products have a meaningful 16 capacity to deceive consumers.

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Bluebook (online)
Caldwell v. Nordic Naturals, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/caldwell-v-nordic-naturals-inc-cand-2024.