Dino Rikos v. The Procter & Gamble Co.

799 F.3d 497, 2015 FED App. 0199P, 92 Fed. R. Serv. 3d 652, 2015 U.S. App. LEXIS 14613, 2015 WL 4978712
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 20, 2015
Docket14-4088
StatusPublished
Cited by123 cases

This text of 799 F.3d 497 (Dino Rikos v. The Procter & Gamble Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Dino Rikos v. The Procter & Gamble Co., 799 F.3d 497, 2015 FED App. 0199P, 92 Fed. R. Serv. 3d 652, 2015 U.S. App. LEXIS 14613, 2015 WL 4978712 (6th Cir. 2015).

Opinions

MOORE, J., delivered the opinion of the court in which COHN, D.J., joined. COHN, D.J. (pg. 527), delivered a separate concurring opinion. COOK, J. (pp. 527-29), delivered a separate dissenting opinion.

OPINION

KAREN NELSON MOORE, Circuit Judge.

The named plaintiffs-appellees (“Plaintiffs”) are three individuals who purchased Align, Procter & Gamble’s (“P & G”) pro-biotic nutritional supplement, and found that the product did not work as advertised — that is, it did not promote their digestive health. Plaintiffs subsequently brought suit, alleging violations by P & G of various state unfair or deceptive practices statutes because it has not been proven scientifically that Align promotes digestive health for anyone. On June 19, 2014, the district court certified five single-state classes from California, Illinois, Florida, New Hampshire, and North Carolina under Federal Rule of Civil Procedure 23(b)(3) comprised of “[a]ll consumers who purchased Align ... from March 1, 2009, until the date notice is first provided to the Class.” On appeal, P & G contends that the district court abused its discretion in granting Plaintiffs’ motion for class certification. For the reasons set forth below, we AFFIRM the district court’s judgment granting class certification to Plaintiffs.

I. BACKGROUND

A. Facts

Align contains a patented probiotic strain, Bifidobacterium infantis 3562f (“Bifantis”), which it developed in the 1990s and early 2000s in partnership with Alimentary Health, a company based in Ireland. Sealed App. at 497. According to the World Health Organization, probiot[503]*503ics are “live microorganisms ... which when administered in adequate amounts confer a health benefit to the host.” R. 108-8 (Komanduri Decl. ¶ 12) (Page ID # 1596). “While there is a consensus within the medical and scientific communities that utilizing bacteria as a therapeutic measure in human disease is promising, current knowledge of the use of bacteria for these purposes remains fairly primitive.” Id. ¶ 13 (Page ID # 1596). Although a limited number of probiotics have been approved as prescription treatments for pouchitis and infectious diarrhea, the overall “[mjedical understanding of probiotics in humans is still in its infancy.” Id. ¶¶ 13-14 (Page ID # 1596-97).

Align is not a prescription probiotic. Instead, it is marketed to the general public as a supplement that “naturally helps build and support a healthy digestive system, maintain digestive balance, and fortify your digestive system with healthy bacteria.” Appellant Br. at 12 (alterations omitted). In addition, unlike some other nonprescription probiotics, Align is not included as an add-on ingredient to another consumer product (e.g., yogurt), but is rather sold in a capsule that is “filled with bacteria and [otherwise] inert ingredients.” R. 140 (Dist. Ct. Order at 30) (Page ID # 6444).

P & G began selling Align in various test markets in October 2005, with sales representatives dropping off samples to doctors’ offices in St. Louis, Boston, and Chicago. Sealed App. at 410. P & G was also able to sell a limited amount of product online, although “physician-driven sales outpaced internet-driven sales by about 2:1.” Id. One of the initial hurdles faced by P & G was convincing consumers of the product’s value, particularly given Align’s premium price point. See id. at 535 (company document noting that “[v]alue is a trial barrier due to the premium price point of $29.99. Probiotics on shelf at major retailers range from $9.99-$29.99. Of note, other probiotics detailed through physicians cost upwards of $45”) (emphasis added). After a successful rollout across multiple markets, P & G launched Align nationwide in 2009, promoting Align through a comprehensive advertising campaign, which included in-person physician visits, television and print advertisements, in-store displays, and product packaging. Appellant Br. at 11-12.

B. Procedural History

Dino Rikos, Tracey Burns, and Leo Jarzembrowski, the named plaintiffs-appellees, are residents of Illinois, Florida, and New Hampshire, respectively. From 2009 to 2011, Rikos, Burns, and Jarzembrowski were “exposed to and saw Procter & Gamble’s claims by reading the Align label.” R. 85 (Second Amended Class Action Compl. ¶¶ 10-12) (Page ID # 963-64). In reliance on P & G’s claims of Align’s effectiveness, they proceeded to purchase Align at various stores in California, Illinois, North Carolina, Florida, and New Hampshire.

In their complaint, Plaintiffs allege that they “suffered injury in fact and lost money as a result of the unfair competition described [t]herein” after finding that Align did not provide them with the digestive benefits that it promised to provide. Id. Plaintiffs initially filed suit in the United States District Court for the Southern District of California, but the case was eventually transferred to the Southern District of Ohio. R. 25 (S.D. Cal. Dist. Ct. Order at 4) (Page ID # 374). In January 2014, Plaintiffs filed a motion and memorandum in support of class certification. Sealed App. at 15-63. In their motion, Plaintiffs requested that the district court certify the following five single-state [504]*504classes and appoint them as class representatives:

California Class (Represented by Plaintiff Dino Rikos): All consumers who purchased Align in California from March 1, 2009, until the date notice is first provided to the Class.
Rlinois Class (Represented by Plaintiff Dino Rikos): All consumers who purchased Align in Illinois from March 1, 2009, until the date notice is first provided to the Class.
Florida Class (Represented by Plaintiff Tracey Burns): All consumers who purchased Align in Florida from March 1, 2009, until the date notice is first provided to the Class.
New Hampshire Class (Represented by Plaintiff Leo Jarzenbowski [sic]]: All consumers who purchased Align in New Hampshire from March 1, 2009, until the date notice is first provided to the Class.
North Carolina Class (Represented by Plaintiff Tracey Burns): All consumers who purchased Align in North Carolina from March 1, 2009, until the date notice is first provided to the Class. Excluded from each of the Classes are the defendant, its officers, directors, and employees, and those who purchased Align for the purpose of resale.

Id. at 16.

After hearing oral argument from both sides, the district court issued an order granting Plaintiffs’ motion for class certification. In its • order, the district court made clear that it was not attempting to provide a ruling on the merits of the case (i.e., whether or not Align promotes digestive health), but was instead reviewing only whether Plaintiffs had presented sufficient evidence to satisfy Federal Rule of Civil Procedure 23. R. 140 (Dist. Ct. Order at 5-6) (Page ID # 6419-20). It then determined that class certification was proper. Id. at 1, 38 (Page ID #6415, 6452). P & G has timely appealed.

II. ANALYSIS

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799 F.3d 497, 2015 FED App. 0199P, 92 Fed. R. Serv. 3d 652, 2015 U.S. App. LEXIS 14613, 2015 WL 4978712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dino-rikos-v-the-procter-gamble-co-ca6-2015.