Chew CPG Inc. v. Hiya Health Products, LLC; UBS Financial Services Inc. and Bank of America, NA, Trustee Process Defendants

CourtDistrict Court, D. Massachusetts
DecidedApril 29, 2026
Docket1:25-cv-12344
StatusUnknown

This text of Chew CPG Inc. v. Hiya Health Products, LLC; UBS Financial Services Inc. and Bank of America, NA, Trustee Process Defendants (Chew CPG Inc. v. Hiya Health Products, LLC; UBS Financial Services Inc. and Bank of America, NA, Trustee Process Defendants) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Chew CPG Inc. v. Hiya Health Products, LLC; UBS Financial Services Inc. and Bank of America, NA, Trustee Process Defendants, (D. Mass. 2026).

Opinion

DISTRICT OF MASSACHUSETTS

CHEW CPG INC.,

Plaintiff,

v.

HIYA HEALTH PRODUCTS, LLC, CIVIL ACTION NO. 25-12344-MPK1

Defendant,

and,

UBS FINANCIAL SERVICES INC. and BANK OF AMERICA, NA,

Trustee Process Defendants.

MEMORANDUM AND ORDER ON THE DEFENDANT’S MOTION TO DISMISS (#14) AND THE PLAINTIFF’S MOTION TO AMEND (#46.)

KELLEY, U.S.M.J.

I. Introduction.

In this case, the Plaintiff, Chew CPG Inc. (“Chew”), sues the Defendant, Hiya Health Products, LLC (“Hiya”), alleging that Hiya breached the terms of a contract for product development services and misappropriated Chew’s work product for its own benefit, and bringing a claim for breach of contract (Count I); a claim under Mass. Gen. Laws. ch. 93A (Count II); and a claim seeking “trustee process attachment” (Count III). (#1-1 ¶¶ 28-39.) The court addresses two motions: Hiya’s motion to dismiss Chew’s complaint (#14) and Chew’s motion to amend its complaint. (#46). Hiya opposes amendment. (#49.) For the reasons that follow, Chew’s motion to amend is allowed; and Hiya’s motion to dismiss, which responds to Chew’s original complaint, is denied as moot.

1 With the parties’ consent, this case was assigned to the undersigned for all purposes, including trial and the entry of judgment, pursuant to 28 U.S.C. § 636(c). (#22.) Chew brought suit against Hiya on July 21, 2025, in the Massachusetts Superior Court for Suffolk County. (#1-1.) Hiya removed the matter to this Court on August 22, 2025, on the basis of diversity.2 (#1 ¶¶ 4-8.) On September 5, 2025, Hiya moved to dismiss Count II of Chew’s

complaint—Chew’s ch. 93A claim—pursuant to Federal Rules of Civil Procedure 9(b) and 12(b)(6). (#14.) Briefing on the motion stretched into late October 2025. See ##29, 32. During that time, the parties were engaged in resolving Chew’s request for trustee process attachment, and they requested numerous extensions to file a joint status report setting out their progress. See, e.g., ##18, 26, 36, 42. When the parties eventually filed a joint submission on December 8, 2025, they reported the issue resolved. See supra, n.2. Less than a month later, on January 6, 2026, and while Hiya’s motion to dismiss was still pending, Chew moved to amend its complaint.3 (#46.) According to Chew, it seeks to “clarify and augment” its factual allegations and claims

“based on additional information and a clearer understanding of the issues involved in this dispute.” (#46-1 at 1-2.) Hiya opposes amendment on both timeliness and futility grounds. (#49.)

2 Before this case’s removal, Chew filed an “Ex Parte Motion for Trustee Process Attachment” (the “Motion”) (#1-4 at 5-15) based on its belief that there was “a clear danger that [Hiya] will withdraw, dissipate, or conceal” funds it maintains with UBS Financial Services Inc. (“UBS”) and Bank of America, NA (“BOA”), the Trustee Process Defendants in this case. Id. at 9. The Motion remained pending on removal, but Hiya indicated in its notice of removal that Chew’s Motion and its claim for “trustee process attachment” against UBS and BOA was “largely moot and resolved” where it had given Chew “assurances that it has the requisite funds available to satisfy any potential claim and that it will keep such funds in an account for the duration of the litigation.” (#1 ¶ 13.) In light of this, the court asked the parties to file a status report setting out whether the issue of trustee process attachment had been resolved, see #18, and the parties later informed the court in a joint status report that they had “entered into an agreement to resolve the Motion and Chew CPG Inc.’s Trustee Process Claim.” (#43 at 1.) In its proposed amended complaint, Chew has excised its claim for trustee process attachment and states that the parties have since “negotiated a resolution” to the issue. (#46-2 ¶ 5.)

3 Chew originally filed its amended complaint on December 30, 2025, though it later moved to withdraw it and sought leave to file where Hiya had not consented to amendment. See ##45, 46- 1 ¶ 8. In light of this Order allowing amendment, Chew’s motion to withdraw is denied as moot. A. Chew’s Proposed Amended Complaint (“PAC”) (#46-2.) In the PAC, Chew again asserts a claim for breach of contract (Count I) and a claim

under ch. 93A (Count II). See id. ¶¶ 37-50. In proposed Count III, however, Chew has replaced the “trustee process attachment” claim of its operative complaint, see #1-1 ¶¶ 37-39, with one for quantum meruit. See #46-2 ¶¶ 51-53. The factual allegations of the PAC, which are accepted as true for the purpose of assessing the futility of the proposed amendments, see Efron v. UBS Fin. Servs. Inc. of P.R., 96 F.4th 430, 437 (1st Cir. 2024), are as follows. 1. The Master Services Agreement (“MSA”) and the Statement of Work (“SOW”). On July 31, 2024, Chew and Hiya entered into an agreement—the MSA—in which Chew, in exchange for compensation, agreed to provide product development services and to “develop new and/or modified food and beverage products” that were to be marketed and sold by Hiya.4 (#46-2 ¶¶ 6-8). According to Chew, under the MSA’s terms, “the ownership of the work product

developed by Chew, including all tangible property, deliverables and other work product created by [it]” was to “belong exclusively to [Hiya][,]” though Chew says that any “transfer of ownership” was “conditioned upon Hiya’s payment of compensation.” Id. ¶ 28 (additional quotations omitted) (alterations in original). The following day, August 1, 2024, the parties executed a Statement of Work (“SOW”) under which Chew was to “act as Hiya’s product development partner and provide research and

4 Chew is a Delaware corporation with a principal place of business in Massachusetts. See ##1-1 ¶ 1, 46-2 ¶ 1. Hiya is a limited liability corporation organized in Florida with members who are citizens of Utah and California. (#1 ¶ 7.) Hiya states, and Chew does not dispute, that UBS and BOA are nominal parties “involved solely to potentially facilitate” Chew’s claim for trustee process attachment, see id. ¶ 12, an issue which, in any event, the parties have reported as resolved. See supra, n.2; see also Endurance Am. Ins. Co. v. John Moriarty & Assocs., Inc., Civil Action No. 1:23-12550-JEK, 2024 WL 3849670, at *2 (D. Mass. Aug. 16, 2024) (“‘[A] federal court must disregard nominal or formal parties and rest jurisdiction only upon the citizenship of real parties to the controversy.’”) (quoting Navarro Sav. Ass’n v. Lee, 446 U.S. 458, 461 (1980)). $602,640, paid out over monthly installments, in exchange for its work under the SOW, in addition to $48,211.20 “as out of pocket expenses incurred by Chew in connection with the engagement.”

Id. ¶¶ 13, 14 (defined term omitted). The SOW allowed Hiya to terminate the agreement, as follows: Hiya reserves the right to terminate this agreement with no penalty after the initial 12-months with a 90-day written notice of cancellation. Hiya will be responsible for all fees and expenses outlined in this scope that are incurred up to the termination date.

Id. ¶ 16 (additional quotations omitted). 2. Hiya, Following its Acquisition, Breaches the SOW. As Chew alleges, on or about December 23, 2024, it received an email announcing Hiya’s acquisition by USANA Health Sciences. Id. ¶¶ 18, 20. That email, which was sent by an individual named Adam Gillman, read, in relevant part: [w]e wanted to be the first to acknowledge our partners, like you, who made this possible. AND will continue to help us win everyday going forward.

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Chew CPG Inc. v. Hiya Health Products, LLC; UBS Financial Services Inc. and Bank of America, NA, Trustee Process Defendants, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chew-cpg-inc-v-hiya-health-products-llc-ubs-financial-services-inc-and-mad-2026.