Elliott v. Conagra Brands, Inc.

CourtDistrict Court, E.D. California
DecidedMarch 28, 2025
Docket2:23-cv-01417
StatusUnknown

This text of Elliott v. Conagra Brands, Inc. (Elliott v. Conagra Brands, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elliott v. Conagra Brands, Inc., (E.D. Cal. 2025).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 11 LILLIAN ELLIOT, on behalf of herself No. 2:23-cv-01417-DJC-AC and others similarly situated, 12 Plaintiff, 13 ORDER v. 14 CONAGRA BRANDS, INC., 15 Defendants. 16

17 Plaintiff Lillian Elliot regularly used Defendant Conagra Brands, Inc.’s 18 (“Conagra”) butter substitute product sold under the brand name Smart Balance. 19 Plaintiff alleges that Defendant altered the ingredient ratios of its product — Smart 20 Balance Original spread — thereby reducing its quality, without adequately notifying 21 consumers. After Plaintiff’s original complaint was dismissed with leave to amend by 22 Judge Morrison C. England, she refiled a First Amended Complaint (ECF No. 41, 23 hereinafter “FAC”), advancing similar arguments. For the reasons discussed below, 24 the Court finds that Plaintiff has not adequately overcome the concerns originally 25 identified by Judge England, and that the newly raised allegations are unpersuasive 26 or Plaintiff lacks standing to bring them. The Court dismisses Plaintiff’s case with leave 27 to amend. 28 1 BACKGROUND 2 Defendant manufactures a line of butter-substitute, vegetable-oil-based 3 products, including “Smart Balance Original” spreads. (FAC ¶¶ 18, 21.) Historically, 4 Defendant has manufactured Smart Balance Original with a composition of 64% 5 vegetable oil and 32% water. (Id. ¶ 23.) But, during a two-month period in 2022, 6 Defendant altered the composition to be approximately 39% oil and 57% water. (See 7 id. ¶¶ 33, 35.) Plaintiff is a consumer who purchased Defendant’s Smart Balance 8 Original spread before and during the period where its composition changed to 9 include more water and less oil. (Id. ¶ 16.) Replacing oil with water leads to a lower- 10 quality product, and consumers reported that the composition with added water was 11 more difficult to spread on toast, could not be used effectively for frying or sautéing, 12 and ruined baked goods when used as a butter substitute. (Id. ¶¶ 97–109.) Despite 13 the change in ingredients, the new Smart Balance Original spread was still sold at the 14 same price as the original recipe. (Id. ¶ 84.) Although the packaging of the Smart 15 Balance Original spread was changed to identify the adjusted ratios of oil and water, 16 the text was small, difficult to read, and could be obstructed by stacking the spread 17 containers on top of each other. (Id. ¶¶ 41, 43–47, 88.) Plaintiff also alleges that the 18 Smart Balance Original spread, while marketed as containing 320 or 400 mg of 19 Omega 3 per serving, only provided 45 to 60 mg of Omega 3 that is physiologically 20 available for absorption into the body. (Id. ¶ 265.) This is because the type of Omega 21 3 used by Defendant — alpha linolenic acid — is less absorbable than other forms of 22 Omega 3. (Id. ¶ 260.) 23 Plaintiff contends that Defendant “initiated a campaign of consumer deception” 24 by selling the lesser-quality composition with increased water, while maintaining 25 nearly identical packaging. (Id. ¶ 25.) She filed a complaint against Defendant in 26 2023, which was dismissed in 2024 by Judge England with leave to amend. (ECF Nos. 27 1, 39.) In his order dismissing the original complaint, Judge England noted that “[t]he 28 crux of Plaintiff’s argument is essentially that she did not read the label.” (ECF No. 39 1 at 7.) Plaintiff brings substantially similar claims here, on behalf of herself and all 2 others similarly situated, specifically alleging the following causes of actions: 3 1. Violation of the Consumer Legal Remedies Act (Cal. Civ. Code §§ 17500, et 4 seq.), arguing that replacing the oil with water while failing to appropriately 5 update the labeling is an unfair, deceptive, unlawful, or unconscionable 6 commercial practice (FAC ¶¶ 308–19); 7 2. Violation of the Unfair Competition Law (Cal. Bus. & Prof. Code §§ 17200, et 8 seq.), arguing that replacing the oil with water while failing to appropriately 9 update the labeling is an unfair, deceptive, unlawful, or unconscionable 10 commercial practice (FAC ¶¶ 320–52); 11 3. Violation of the False Advertising Law (Cal. Bus. & Prof. Code §§ 17500, et 12 seq.), arguing that the difficult-to-read label did not adequately advise 13 consumers of the oil and water content, and that the label mislead 14 consumers into thinking the new composition could be used for cooking 15 purposes (FAC ¶¶ 353–64); 16 4. Breach of Express Warranties (Cal. Comm. Code § 2313 & common law), 17 arguing that the label did not adequately inform consumers that the oil and 18 water composition had changed, and that the new composition was not 19 proper for cooking or baking yet was advertised as being so (FAC ¶¶ 365– 20 78); 21 5. Breach of Implied Warranties (Cal. Comm. Code § 2314 & common law), 22 arguing that the label did not adequately inform consumers that the oil and 23 water composition had changed, and that the new composition was not 24 proper for cooking or baking yet was advertised as being so (FAC ¶¶ 379– 25 401); 26 6. Negligent Misrepresentation (Cal. Civ. Code §§ 1709–1710), arguing that 27 the new composition was not suitable for cooking or baking yet was 28 advertised as being so (FAC ¶¶ 402–25); 1 7. Breach of Contract, arguing that Defendant failed its contractual duties by 2 supplying an inferior product (FAC ¶¶ 426–41); 3 8. Breach of Duty of Good Faith and Fair Dealing, arguing that Defendant 4 failed its contractual duties by supplying an inferior product (FAC ¶¶ 442– 5 54); 6 9. Fraudulent Inducement, arguing that the label misrepresented the actual 7 levels of oil and water in the revised product (FAC ¶¶ 455–62); and 8 10. Negligence, arguing that Defendant knew or should have known that the 9 product was not usable for cooking or baking and that its use was 10 potentially dangerous (FAC ¶¶ 463–79). 11 Defendant moves to dismiss each of Plaintiff’s causes of action. (ECF No. 53, 12 hereinafter “Mot.”) 13 LEGAL STANDARD 14 A party may move to dismiss for “failure to state a claim upon which relief can 15 be granted.” Fed. R. Civ. P. 12(b)(6). The motion may be granted only if the complaint 16 lacks a “cognizable legal theory or sufficient facts to support a cognizable legal 17 theory.” Mendiondo v. Centinela Hosp. Med. Ctr., 521 F.3d 1097, 1104 (9th Cir. 2008). 18 While the Court assumes all factual allegations are true and construes “them in the 19 light most favorable to the nonmoving party,” Steinle v. City & Cnty. of S.F., 919 F.3d 20 1154, 1160 (9th Cir. 2019) (internal quotations omitted), if the complaint's allegations 21 do not “plausibly give rise to an entitlement to relief,” the motion must be granted, 22 Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009). However, if the “plaintiffs . . . have not 23 nudged their claims across the line from conceivable to plausible, their complaint 24 must be dismissed.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 556 (2007). 25 A complaint need contain only a “short and plain statement of the claim 26 showing that the pleader is entitled to relief,” Fed. R. Civ. P. 8(a)(2), not “detailed 27 factual allegations,” Twombly, 550 U.S. at 555. However, this rule demands more than 28 unadorned accusations; “sufficient factual matter” must make the claim at least 1 plausible. Iqbal, 556 U.S. at 678. In the same vein, conclusory or formulaic recitations 2 of elements do not alone suffice. Id.

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Bluebook (online)
Elliott v. Conagra Brands, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/elliott-v-conagra-brands-inc-caed-2025.