Dremak v. Iovate Health Sciences Group, Inc.

801 F. Supp. 2d 993
CourtDistrict Court, S.D. California
DecidedMay 31, 2011
DocketCase No. 09md2087 BTM (CAB); S.D. Cal. No. 09cv1088
StatusPublished
Cited by1 cases

This text of 801 F. Supp. 2d 993 (Dremak v. Iovate Health Sciences Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dremak v. Iovate Health Sciences Group, Inc., 801 F. Supp. 2d 993 (S.D. Cal. 2011).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS THE FIRST CONSOLIDATED AMENDED CLASS ACTION COMPLAINT

BARRY TED MOSKOWITZ, District Judge.

Pursuant to Fed.R.Civ.P. 12(b)(1), 12(b)(6), and 9(b), defendants Iovate Health Sciences, Inc. and Iovate Health Sciences U.S.A., Inc., (“Manufacturer Defendants” or “Iovate”) and GNC Corporation, Wal-Mart Stores, Inc., Walgreens Company, CVS Caremark Corp., and Vitamin Shoppe Industries, Inc. (“Retailer Defendants”) have filed a motion to dismiss the First Consolidated Amended Class Action Complaint. Defendants BJ’s Wholesale Club, Inc., Kmart Corporation, Rite-Aid Hdqtrs. Corp., and NBTY Inc. have joined in the motion to dismiss.1 For the reasons set forth below, the motion to [999]*999dismiss is GRANTED IN PART and DENIED IN PART.

I. FACTUAL BACKGROUND

On December 22, 2009, the First Consolidated Amended Class Action Complaint (“complaint” or “FAC”) was filed in this multi-district litigation. Twenty named plaintiffs (“Plaintiffs” or “named Plaintiffs”) assert claims on behalf of themselves and a putative nationwide class of “[a]ll persons who purchased Hydroxycutbranded products.” (FAC ¶ 83.) The Hydroxycut-branded products (“Products”) consist of 14 specific Hydroxycut-branded products. (FAC ¶ 1.)2

The following facts are taken from the allegations of the FAC. The Court makes no findings regarding the truthfulness of the allegations.

According to the FAC, Iovate advertised their products as being safe and effective for, among other things, weight loss, and spent tens of millions of dollars sending this message to consumers through an extensive advertising campaign in a variety of media, including television, newspapers, magazines, direct mail, the internet, point-of-sale displays, and on the product labels. It turns out, however, that certain ingredients in the products were unsafe and are associated with cases of severe hepatotoxicity and other serious health ailments. Moreover, the formula was never clinically proven to be effective for weight loss.

The FAC specifically alleges that in 1999, Iovate announced the release of Hydroxycut-branded products — Iovate’s self-described “highly effective weight-loss supplement.” (FAC ¶ 40.) Although Hydroxycut products are sold under various names, each contains herbal extracts that cause severe chemical-induced liver damage. (FAC ¶¶ 41-42.) One of the ingredients, garcinia cambogia, is a fruit native to Asia and Africa and used by very poor people to make meals more filling. (FAC ¶ 43.) Its main component, from which the name “Hydroxycut” is derived, is hydroxycitric acid (“HCA”). (Id.) HCA was initially studied in rodents as a possible treatment for obesity, but clinical studies failed to establish its effectiveness in humans. (FAC ¶ 43.)

Plaintiffs alleged that Iovate broadly marketed the Hydroxycut products through a variety of media, and both impliedly and expressly stated that the Hydroxycut products are safe and effective. (FAC ¶¶ 44-56.) For example, Iovate represented that the products are “clinically proven” to help consumers “lose weight fast,” “increase energy,” “burn calories,” “control appetite,” and that they are “doctor formulated,” “backed by science,” and “extremely safe,” “without any unwanted side effects.” (FAC ¶¶ 52-56.) The Products’ packaging stated, “Hydroxycut really does work — fast!” (FAC ¶ 54.)

According to Plaintiffs, Federal Trade Commission rules required that Iovate actually have the level of proof claimed — i.e., clinical proof — -at the time the claims were made. (FAC ¶ 58.) However, there was no clinical proof of Hydroxycut’s safety or efficacy. (FAC ¶¶ 53, 54, 58-71.) For example, in a study commissioned by Iovate, the subjects using Hydroxycut actually lost less weight than the placebo group. (FAC ¶ 59.) In fact, for nearly a decade, doctors and scientists have questioned the safety and efficacy of Hydroxycut prod[1000]*1000ucts. (FAC ¶ 60.) Iovate’s director of research until 2002 allegedly admitted, “the majority of products they put on then-shelves don’t have pure clinical research to support them.” (FAC ¶ 59.)

As early as 2005, doctors began reporting cases of individuals presenting with rhabdomyolysis, hepatotoxicity, and other health problems after taking Hydroxycut. (FAC ¶¶ 63-68.) In April 2009, the FDA stated that “[tjhree lines of evidence derived from multiple disparate sources suggest it is very likely that exposure to Hydroxycut capsules/caplets can cause idiosyncratic he patotoxicity.” (FAC ¶ 75.)

On May 1, 2009, the FDA issued a press release warning consumers to immediately stop using Hydroxycut products based on reports of serious health problems ranging from jaundice and elevated liver enzymes to seizures, cardiovascular disorders, and rhabdomyolysis — a condition which can lead to other serious health problems such as kidney failure. (FAC ¶ 77.) The FDA had received one report of a death due to liver failure. (Id.) A day after the FDA warning, Iovate announced a recall, but, according to Plaintiffs, continued to mislead and downplay the health risks associated with their products. (FAC ¶ 80.)

Plaintiffs allege that Defendants’ advertising and marketing campaign was designed to cause consumers to buy Hydroxycut products. (FAC ¶ 82.) As a result of Defendants’ advertising campaigns, consumers did buy the products and Hydroxycut became the top selling weight-loss supplement with over nine million units sold in 2008. (FAC ¶ 82.) Hydroxycut sales allegedly exceeded $350 million in a single year. (Id.)

According to the FAC, each of the named Plaintiffs was exposed to and read Defendants’ advertising claims, including the representations on the Products’ labeling. (FAC ¶¶ 7-26.) Each of the named Plaintiffs purchased Hydroxycut Products, believing they were safe and effective as a dietary supplement and for weight-loss purposes. (Id.) At the time Plaintiffs purchased and used the Products, Plaintiffs did not know that the Products posed serious adverse health risks and were not proven effective. (Id.) After learning of the potential serious health-risks associated with the consumption of the Products, Plaintiffs stopped consuming the Products. (Id.) As a result of their purchases of Hydroxycut, Plaintiffs have lost money and property, including the purchase price for the Products. (Id.) Some plaintiffs have also incurred costs of testing their health. (FAC, ¶¶ 170,186.)

The FAC asserts the following claims: (1) violation of State Consumer Protection Laws on Behalf of Plaintiffs and a Nationwide Class; (2) violation of the Arizona Consumer Fraud Act, Ariz.Rev.Stat. § 44-1521 et seq.; (3) violation of the California Consumers Legal Remedies Act, Cal. Civ. Code § 1750 et seq.; (4) Unlawful Business Acts and Practices in violation of Cal. Bus. & Prof.Code § 17200 et seq.; (5) violation of the Florida Deceptive and Unfair Trade Practices Act, Fla. Stat. § 501.201 et seq.;

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Hydroxycut Marketing & Sales Practices Lit.
801 F. Supp. 2d 993 (S.D. California, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
801 F. Supp. 2d 993, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dremak-v-iovate-health-sciences-group-inc-casd-2011.