David Williams v. Reckitt Benckiser LLC

65 F.4th 1243
CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 12, 2023
Docket22-11232
StatusPublished
Cited by17 cases

This text of 65 F.4th 1243 (David Williams v. Reckitt Benckiser LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David Williams v. Reckitt Benckiser LLC, 65 F.4th 1243 (11th Cir. 2023).

Opinion

USCA11 Case: 22-11232 Document: 60-1 Date Filed: 04/12/2023 Page: 1 of 36

[PUBLISH] In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 22-11232 ____________________

DAVID WILLIAMS, Individually and on behalf of all others similarly situated, CAROLL ANGLADE, Individually and on behalf of all others similarly situated, HOWARD CLARK, THOMAS MATTHEWS, MARTIZA ANGELES, Plaintiffs-Appellees, versus RECKITT BENCKISER LLC, RB HEALTH (US) LLC,

Defendants-Appellees, USCA11 Case: 22-11232 Document: 60-1 Date Filed: 04/12/2023 Page: 2 of 36

2 Opinion of the Court 22-11232

THEODORE H. FRANK,

Interested Party-Appellant.

Appeal from the United States District Court for the Southern District of Florida D.C. Docket No. 1:20-cv-23564-MGC ____________________

Before WILLIAM PRYOR, Chief Judge, MARCUS, Circuit Judge, and MIZELLE,∗ District Judge. MARCUS, Circuit Judge: This is an appeal from a district court order approving a class-action settlement that purports to provide injunctive relief and up to $8 million in monetary relief to a class of individuals (the “Class”) who purchased one or more “brain performance supple- ments” manufactured and sold by Defendants Reckitt Benckiser LLC and RB Health (US) LLC (together, “RB”) under the brand name “Neuriva.” Five Plaintiffs (together, the “Named Plaintiffs”) who had previously purchased Neuriva brought this putative class action, alleging that RB used false and misleading statements to

∗ Honorable Kathryn Kimball Mizelle, United States District Judge for the Middle District of Florida, sitting by designation. USCA11 Case: 22-11232 Document: 60-1 Date Filed: 04/12/2023 Page: 3 of 36

22-11232 Opinion of the Court 3

give consumers the impression that Neuriva and its “active ingre- dients” had been clinically tested and proven to improve brain function, in violation of Florida, California, and New York con- sumer protection laws. The parties promptly agreed to a global settlement (the “Settlement” or “Settlement Agreement”) that sought to resolve the claims of all Plaintiffs and absent Class mem- bers, before any formal discovery or motion practice had been completed. Obviously, the settling parties do not contend that the dis- trict court erred in approving the Settlement; rather, this appeal comes to us because one unnamed Class member, an attorney and frequent class-action objector, Theodore Frank, objected in district court and subsequently appealed the district court’s approval or- der. In essence, Frank argues that the parties inflated the perceived value of the Settlement by touting that RB would pay up to $8 mil- lion to Neuriva purchasers -- knowing all the while that few Class members would complete the process of submitting claims to re- ceive payment -- and imposing changes to RB’s marketing that would not benefit past purchasers of Neuriva and that were mean- ingless in any event. This, Frank contends, allowed Plaintiffs’ counsel to secure a disproportionately large fee award (some $2.9 million) while decreasing the overall payout required of RB. Whatever the merits of Frank’s claims, they will have to wait for another day because, after thorough review of the record and with the benefit of oral argument, we conclude that the Named Plaintiffs lack standing to pursue their claims for injunctive relief. USCA11 Case: 22-11232 Document: 60-1 Date Filed: 04/12/2023 Page: 4 of 36

4 Opinion of the Court 22-11232

Under longstanding Supreme Court precedent, plaintiffs seeking injunctive relief must establish that they are likely to suffer an in- jury that is “actual or imminent,” not “conjectural or hypothetical.” But none of the Named Plaintiffs allege that they plan to purchase any of the Neuriva Products again in the future -- to the contrary, the operative complaint gives every indication that they will not again purchase any of the Neuriva Products because they are “worthless.” The district court, therefore, lacked jurisdiction to award injunctive relief to the Named Plaintiffs or absent Class members, and its approval of the Settlement Agreement (which was based in real part on the award of injunctive relief) was an abuse of discretion. Accordingly, we VACATE the district court’s order and REMAND for proceedings consistent with this opinion. I. A. RB manufactures and sells a line of three “brain performance supplements” under the brand name Neuriva: Neuriva Original, Neuriva Plus, and Neuriva De-Stress (together, the “Neuriva Prod- ucts”). RB advertises that the Neuriva Products have been “clini- cally and scientifically proven to enhance the brain health and per- formance of all adults in specific ways.” Thus, for example, RB in- forms consumers that taking any of the Neuriva Products will help them “brain better” by improving “focus,” “accuracy,” and “con- centration.” Neuriva Original and Plus are also claimed to improve users’ “memory” and “learning,” while Neuriva De-Stress, RB promises, will aid in “stress reduction” and “relaxation.” RB also USCA11 Case: 22-11232 Document: 60-1 Date Filed: 04/12/2023 Page: 5 of 36

22-11232 Opinion of the Court 5

advertises that the Neuriva Products each contain several “active ingredients” that have themselves been clinically proven to im- prove brain physiology and function. In 2020, three sets of Plaintiffs filed three separate putative class action complaints against RB in the Eastern District of Cali- fornia, the Southern District of New York, and the Southern Dis- trict of Florida -- all later consolidated into a single class-action com- plaint in the Southern District of Florida. This consolidated class action alleges that RB’s advertising for the Neuriva Products em- ployed false and misleading statements in violation of the Florida Deceptive and Unfair Trade Practices Act, Fla. Stat. § 501.201 et seq., the California Unfair Competition Law, Cal. Bus. & Prof. Code § 17200 et seq., the California Consumers Legal Remedies Act, Cal. Civ. Code § 1750 et seq., the California False Advertising Law, Cal. Bus. & Prof. Code § 17500 et seq., and the New York General Business Law, N.Y. Gen. Bus. L. § 349. It also alleges un- just enrichment on the same theory. The complaint identifies a number of different representa- tions and statements made by RB as false and/or misleading. For instance, Plaintiffs allege that RB’s advertising falsely leads consum- ers to believe that the Neuriva Products have undergone clinical and/or scientific testing to prove their efficacy, when, in fact, none of the Products have been tested. See, e.g., Consol. Amended Class Action Compl. ¶ 64 (“The singular message throughout Defend- ants’ marketing of Neuriva is that Neuriva is scientifically and clin- ically proven, as a matter of fact, to increase brain performance.”); USCA11 Case: 22-11232 Document: 60-1 Date Filed: 04/12/2023 Page: 6 of 36

6 Opinion of the Court 22-11232

id. at ¶ 66 (“Defendants’ statements on their labels and in their ad- vertising convey to reasonable consumers, and reasonable con- sumers would believe, that the state of the science regarding Neu- riva and its ingredients has reached a level of scientific consensus such that [Neuriva’s] claims of increased or enhanced brain perfor- mance are established truths and statements of fact.”).

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Bluebook (online)
65 F.4th 1243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-williams-v-reckitt-benckiser-llc-ca11-2023.