Castillo v. Walmart, Inc.

District Court, N.D. California·Decided July 1, 2025·No. 5:24-cv-06757·Unknown

Opinion

REBECA CASTILLO, Case No. 5:24-cv-06757-BLF

Plaintiff, ORDER GRANTING IN PART AND v. DENYING IN PART DEFENDANT’S MOTION TO DISMISS; AND WALMART, INC., GRANTING DEFENDANT’S MOTION TO STRIKE Defendant. [Re: Dkt. No. 21] Plaintiff Rebeca Castillo (“Castillo”) brings this putative class action on behalf of herself and a proposed class of consumers seeking redress for Defendant Walmart, Inc.’s (“Walmart”) alleged “deceptive practices associated with the advertising, labeling, and sale of its Parent’s Choice Yogurt Bites Freeze-Dried & Yogurt Fruit Snacks.” Dkt. No. 1 (“Compl.”) ¶ 1. Castillo alleges that, among various “clean label claims” related to the Yogurt Bites, “Walmart boldly claims the Product contains ‘No Preservatives.’” Id. ¶ 2. Yet the ingredient label reveals that the snacks contain “ascorbic acid,” which Plaintiff alleges is “a chemical preservative.” Id. ¶ 3. Before the Court is Walmart’s Motion to Dismiss and Motion to Strike. Dkt. No. 21 (“Mot.”). Castillo filed a brief in opposition to the motion. Dkt. No. 23 (“Opp.”). Walmart filed a reply in support of its motion. Dkt. No. 27 (“Reply”). The Court held a hearing on the motion on April 24, 2025. For the following reasons, the Court GRANTS IN PART AND DENIES IN PART Walmart’s motion to dismiss and GRANTS Walmart’s motion to strike. The following facts alleged in Plaintiff’s Complaint are taken as true for purposes of this Plaintiff Rebeca Castillo is a resident of San Jose, California who has regularly purchased Walmart’s Yogurt Bites over the past two years. Compl. ¶ 11–12. She paid a premium for the products in reliance on the “clean label” claim that the Yogurt Bites contained “No Preservatives.” See id. ¶ 49. However, as is apparent from the ingredient label, Yogurt Bites do contain ascorbic acid. Id. ¶ 3. Plaintiff alleges that the Food and Drug Administration (“FDA”) identifies ascorbic acid as a “preservative,” which is defined under federal regulations as a “chemical that, when added to food, tends to prevent or retard deterioration thereof.” Id. ¶¶ 21–24 (citing 21 C.F.R. § 101.22(a)(5)). Moreover, Plaintiff alleges that “ascorbic acid is effective as, and functions as, a preservative in Defendant’s Product even when used in relatively low quantities.” Id. ¶ 29. Based on “an independent chemical analysis of Walmart’s Product,” the Yogurt Bites have “an ascorbic acid content of 0.163%.” Id. ¶¶ 30–31. This is twice the level that is suggested for use to preserve color and freshness. Id. ¶ 31. By including a “No Preservatives” claim in the advertising and packaging for its Yogurt Bites, Walmart allegedly “seeks to capitalize on consumer preference for clean label products.” Id. ¶ 33. Among various clean-label claims, a claim that an item lacks any preservatives has been found to be among the most important claims to consumers who are motivated to seek out “clean” products. Id. ¶ 34. Therefore, Plaintiff alleges that Walmart’s allegedly deceptive labeling and marketing of the Yogurt Bites product “has misled and deceived consumers,” such that Plaintiff and the members of the proposed class have been injured. Id. ¶¶ 36–37. Plaintiff filed suit in the United States District Court for the Northern District of California on September 26, 2024. Dkt. No. 1. She brings this putative class action on behalf of herself and a class of “[a]ll persons in California who purchased the Class Products in California during the Class Period,” which is defined as “the maximum time allowable as determined by the statute of limitation periods accompanying each cause of action.” Id. ¶ 58. Plaintiff asserts seven causes of action: (1) a claim for breach of express warranty based on violations of California Commercial Code § 2313; (2) a claim for unlawful business practices California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code § 17200 et seq.; (3) a claim for unfair business practices under under the UCL, Cal. Bus. & Prof. Code § 17200 et seq.; (5) a claim for false advertising under California Business and Professions Code § 17500 et seq.; (6) a claim for violation of the Consumers Legal Remedies Act (“CLRA”), Cal. Civ. Code § 1750 et seq.; and (7) a claim for restitution based on quasi-contract/unjust enrichment. A. Rule 12(b)(1) “[L]ack of Article III standing requires dismissal for lack of subject matter jurisdiction under Federal Rule of Civil Procedure 12(b)(1).” Maya v. Centex Corp., 658 F.3d 1060, 1067 (9th Cir. 2011) (citation omitted). Since “[t]he party invoking federal jurisdiction[] bears the burden of establishing” the elements of Article III standing, a plaintiff must be able to demonstrate (1) an “injury in fact” that is (2) fairly traceable to the challenged conduct of the defendant, and (3) likely to be “redressed by a favorable judicial decision.” Spokeo, Inc. v. Robins, 578 U.S. 330, 338 (2016), as revised (May 24, 2016) (citing Lujan v. Defs. of Wildlife, 504 U.S. 555, 560–61 (1992)); Iten v. Los Angeles, 81 F.4th 979, 984 (9th Cir. 2023). “[E]ach element must be supported . . . with the manner and degree of evidence required at the successive stages of the litigation.” Lujan, 504 U.S. at 561. B. Rule 12(b)(6) Under Federal Rule of Civil Procedure 12(b)(6), a court must dismiss a complaint if it fails to state a claim upon which relief can be granted. To survive a Rule 12(b)(6) motion, the plaintiff must allege “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible when the plaintiff pleads facts that allow the court to “draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). There must be “more than a sheer possibility that a defendant has acted unlawfully.” Id. While courts generally do not require “heightened fact pleading of specifics,” a plaintiff must allege facts sufficient to “raise a right to relief above the speculative level.” See Twombly, 550 U.S. at 555, 570. factual allegations and construes them in the light most favorable to the plaintiff. Reese v. BP Expl. (Alaska) Inc., 643 F.3d 681, 690 (9th Cir. 2011). However, the Court need not “accept as true allegations that contradict matters properly subject to judicial notice” or “allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008) (internal quotation marks and citations omitted). On a motion to dismiss, the Court’s review is limited to the face of the complaint and matters judicially noticeable. See MGIC Indem. Corp. v. Weisman,

Castillo v. Walmart, Inc., (N.D. Cal. 2025).

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