Engert v. Quincy Bioscience, LLC

CourtDistrict Court, W.D. Texas
DecidedOctober 8, 2019
Docket1:19-cv-00183
StatusUnknown

This text of Engert v. Quincy Bioscience, LLC (Engert v. Quincy Bioscience, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Engert v. Quincy Bioscience, LLC, (W.D. Tex. 2019).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS DIVISION

MAX ENGERAT, JACK PURCHASE, AND § RONALD ATKINSON, ON BEHALF OF § THEMSELVES AND ALL OTHER § SIMILARLY SITUATED , § Case No. 1:19-CV-183-LY Plaintiffs §

§ v. §

QUINCY BIOSCIENCE, LLC Defendant

REPORT AND RECOMMENDATION OF THE UNITED STATES MAGISTRATE JUDGE

TO: THE HONORABLE LEE YEAKEL UNITED STATES DISTRICT JUDGE

Before this Court are Defendant Quincy Bioscience, LLC’s Motion to Dismiss Plaintiffs’ First Amended Class Action Complaint, filed on June 21, 2019 (Dkt. No. 22); Plaintiffs’ Response, filed on July 12, 2019 (Dkt. No. 24); and Defendant Quincy Bioscience, LLC’s Reply, filed on July 26, 2019 (Dkt. No. 27). On July 24, 2019, the District Court referred the above motion to the undersigned Magistrate Judge for Report and Recommendation pursuant to 28 U.S.C. § 636(b)(1), Federal Rule of Civil Procedure 72, and Rule 1 of Appendix C of the Local Rules of the United States District Court for the Western District of Texas (“Local Rules”). I. BACKGROUND Defendant Quincy Bioscience, LLC (“Defendant”), a foreign limited liability company organized under the laws of Wisconsin, manufactures, markets, sells, and distributes Prevagen, a dietary supplement made with the protein apoaequorin. Defendant’s advertising and labeling state that Prevagen will “improve memory within 90 days” and support a “sharper mind,” “clearer thinking,” and “healthy brain function.” Dkt. No. 14 at ¶ 1. Plaintiffs Max Engert, Jack Purchase, and Ronald Atkinson (“Plaintiffs”) are Texas residents who acquired and consumed Prevagen. Plaintiffs allege that Defendant’s advertisements regarding Prevagen “are false and misleading and designed to dupe consumers into purchasing a supplement that has no effect whatsoever on the brain.” Id. Plaintiffs allege that Defendant made and continues to make numerous false statements regarding Prevagen “on its website, through its commercials,

on the packing, and on the bottle itself.” Id. at ¶ 37. Plaintiffs allege that Prevagen does not work as represented and contend that Defendant has repeatedly made, and continues to make, false statements about its ability to improve memory and affect the brain. Plaintiffs contend that Prevagen does not improve memory or support healthy brain function, a sharper mind, or clearer thinking. Plaintiff alleges that Prevagen’s only active ingredient is apoaequorin, a protein that when ingested undergoes digestion, where it is broken down into its amino acid constituent parts. “As a result of being digested into amino acids, by the time that it reaches the bloodstream, Prevagen is no different than any other protein, such as those found in fish, turkey, bologna, etc. (none of which improve memory or brain function).” Id. at ¶ 27.

Plaintiffs allege that the daily dose of Prevagen provides only a trivial amount of amino acids compared to the substantial amount of amino acids supplied by other proteins in daily diets. Plaintiffs further allege that even if Prevagen were to somehow enter the bloodstream as apoaequorin (and not in its digested form as amino acids), it does not and cannot pass through the blood-brain barrier, and thus it can never enter the brain. “Given that it cannot enter the brain, it can have no effect on brain function, including memory.” Id. at ¶ 28. Plaintiffs also allege that Defendant’s claim that Prevagen has been “clinically tested” to improve memory within 90 days is false. Id. at ¶ 34. Plaintiffs contend that there has never been an independent, randomized, controlled clinical trial subjected to a peer review process that supports Defendant’s claims. Plaintiffs assert that “there is no scientific basis for the representations by Defendant that Prevagen improves memory.” Id. at ¶ 36. Plaintiffs also allege that consumers in Texas, particularly the elderly, have been significantly harmed by Defendant’s false and misleading advertisements. On February 25, 2019, Plaintiffs filed this class action lawsuit against Defendant, on behalf of themselves and all others similarly situated, pursuant to Rule 23 of the Federal Rules of Civil

Procedure, alleging claims under the Texas Deceptive Trade Practices Act (“DTPA”), TEX. BUS. & COM. CODE § 17.41 et seq.; breach of express and implied warranties; and a violation of the Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301-12.1 Plaintiffs bring this action on behalf of the “Texas Class,” consisting “of all citizens of Texas who, within the last four years prior to the filing of this Complaint, purchased Defendant’s product Prevagen,” as well as the “National Class,” consisting “of all citizens of the United States who, within the last four years prior to the filing of this Complaint, purchased Defendant’s product Prevagen.” Id. at ¶¶ 10-11. Plaintiffs seek to recover their economic losses, treble damages, exemplary damages, attorney’s fees, costs and interests, and all other relief to which they and the Class Members are entitled.

On June 21, 2019, Defendant filed the instant Motion to Dismiss under Federal Rule of Civil Procedure 12(b)(6), arguing that Plaintiffs fail to state a claim because the clinical trial on which Defendant premised its advertisements for Prevagen conclusively demonstrates that Defendant’s marketing statements about Prevagen were both truthful and fully substantiated. Alternatively, Defendant argues that all of Plaintiffs’ claims fail to meet the pleading requirements of Federal Rule of Civil Procedure 9(b).

1 This is not the first lawsuit filed against Defendant alleging that its advertising regarding Prevagen’s memory benefits are false and misleading. See TC v. Quincy Bioscience Holding Co., No. 17-3745, 753 F. App’x 87 (2d Cir. 2019) (pending FTC and State of New York lawsuit alleging that Defendant’s marketing campaign for Prevagen is deceptive and violates the FTC Act); Racies v. Quincy Bioscience, LLC, 4:15- CV-292-HSG (N.D. Ca. May 19, 2015) (class action lawsuit—set for trial on Jan. 6, 2020—alleging that Defendant’s statements regarding Prevagen violated California’s consumer protection laws). II. LEGAL STANDARDS Federal Rule of Civil Procedure 12(b)(6) allows a party to move to dismiss an action for failure to state a claim on which relief can be granted. In deciding a Rule 12(b)(6) motion to dismiss for failure to state a claim, the court “accepts all well-pleaded facts as true, viewing them in the light most favorable to the [nonmovant].” In re Katrina Canal Breaches Litig., 495 F.3d 191, 205 (5th

Cir. 2007) (internal quotation marks omitted). The Supreme Court has explained that a complaint must contain sufficient factual matter “to state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the [nonmovant] pleads factual content that allows the court to draw the reasonable inference that the [movant] is liable for the misconduct alleged.” Ashcroft, 556 U.S. at 678.

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Bluebook (online)
Engert v. Quincy Bioscience, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/engert-v-quincy-bioscience-llc-txwd-2019.