Flaherty v. Hello Products LLC

CourtDistrict Court, N.D. Illinois
DecidedMarch 31, 2025
Docket1:23-cv-01990
StatusUnknown

This text of Flaherty v. Hello Products LLC (Flaherty v. Hello Products LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flaherty v. Hello Products LLC, (N.D. Ill. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION NORAH FLAHERTY, Plaintiff, Case No. 1:23-cv-01990 v. Judge Martha M. Pacold HELLO PRODUCTS LLC, Defendant.

MEMORANDUM OPINION AND ORDER This is a case about toothpaste. From plaintiff Norah Flaherty’s perspective, it is also a case about deception. For now, however, it is primarily “a case about federalism,” Coleman v. Thompson, 501 U.S. 722, 726 (1991), and about “the principle of separation of powers that underlies our tripartite system of government,” Mistretta v. United States, 488 U.S. 361, 371 (1989). More specifically, it is a case about jurisdiction, which is the “first question in any case.” Crabtree v. Experian Info. Sols., Inc., 948 F.3d 872, 876 (7th Cir. 2020). In this case, it is also the last. BACKGROUND At the pleading stage, the court “accept[s] all well-pleaded factual allegations as true and draw[s] all reasonable inferences in favor of the plaintiff.” Silha v. ACT, Inc., 807 F.3d 169, 173 (7th Cir. 2015). Defendant Hello Products LLC1 (“Hello”) “manufactures, advertises, markets, sells, and distributes” personal care products—including, as relevant here,

1 In a recently filed Local Rule 3.2 Notification of Affiliates, Hello’s counsel informed the court that Hello Products LLC was dissolved in September 2024, with all of its assets and liabilities assigned to Colgate Palmolive Company, [33] ¶ 2. Before its dissolution, Hello was organized under the laws of Delaware, and Colgate Palmolive was its sole member. [1] ¶¶ 18–19. Under Delaware law, “[u]pon dissolution of a limited liability company and until the filing of a certificate of cancellation . . . the persons winding up the limited liability company’s affairs may, in the name of, and for and on behalf of, the limited liability company, prosecute and defend suits . . . .” 6 Del. Code § 18 803(b). And under the Federal Rules of Civil Procedure, when “an interest is transferred, the action may be continued by or against the original party unless the court, on motion, orders the transferee to be substituted in the action or joined with the original party.” Fed. R. Civ. P. 25(c). Because the court has not received a motion to substitute Colgate Palmolive for Hello as defendant, the court proceeds with Hello as the defendant. toothpaste. [13] ¶ 7.2 Its products include eighteen different toothpastes listed in the complaint, which were “labeled, marketed, and advertised as containing no artificial sweeteners.” Id. ¶ 8. The front labels on these toothpastes expressly state “no artificial sweeteners.” Id. ¶ 9. However, they contain sorbitol and xylitol. Id. ¶ 8. Though sorbitol and xylitol are not mentioned on the front of the packaging, they are listed as inactive ingredients on the back. [18-3] at 4.3 Sorbitol and xylitol are both produced using a process called hydrogenation. [13] ¶¶ 20, 26. “Hydrogenation is a synthetic reaction . . . between hydrogen gas and an unsaturated double bond in a molecule.” Id. ¶ 16. For hydrogenation to occur, the temperature must be between 212- and 302-degrees Fahrenheit, and the pressure must be between 98 and 148 times the standard atmospheric pressure. Id. ¶ 18. A metal catalyst (typically nickel, molybdenum, palladium, or platinum) must also be present. Id. Hydrogenation “chemically alter[s]” the natural substances on which it operates. Id. ¶ 19. Sorbitol results from hydrogenation of starch or glucose syrups. Id. ¶ 20. Xylitol results from hydrogenation of xylose. Id. ¶ 26. On January 7, 2023, Norah Flaherty purchased one of Hello’s toothpastes from a Target in Chicago. Id. ¶ 13. The toothpaste she purchased, like the other products at issue here, included a label reading “No Artificial Sweeteners.” Id. ¶ 14. Flaherty chose this toothpaste because of this labeling. Id. ¶ 15. Sometime thereafter, Flaherty learned that the toothpaste she had purchased contains sorbitol and xylitol, and she filed a class action suit in the Circuit Court of Cook County on February 21, 2023. [1-1] at 4. As later amended, the complaint alleges violations of the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA), 815 ILCS § 505/1 et seq. [13] at 14.4 Flaherty also brings claims for common-law fraud and unjust enrichment. Id. at 16, 18. She seeks relief on behalf of herself and others similarly situated, a proposed class she defines to include “[a]ll persons within the United States who purchased the Products within five years prior to the filing of the original Complaint through the date of class certification,” id. ¶ 47, as well as a proposed Illinois sub-class, id. ¶ 48.

2 Bracketed numbers refer to docket entries and are followed by page and / or paragraph number citations. Page numbers refer to the CM/ECF page number. 3 The amended complaint does not mention that sorbitol and xylitol are listed on the back of the packaging. However, the packaging is referenced in (and a portion of it is attached to) the amended complaint. [13] ¶ 33; [13-1]. In addition, the packaging is central to Flaherty’s claims, which hinge on the allegedly misleading nature of the packaging. Thus, the entire packaging is considered part of the complaint for purposes of the motion to dismiss. See Venture Associates Corp. v. Zenith Data Sys. Corp., 987 F.2d 429, 431 (7th Cir. 1993) (“Documents that a defendant attaches to a motion to dismiss are considered part of the pleadings if they are referred to in the plaintiff’s complaint and are central to her claim.”). 4 This description in this paragraph describes both the amended complaint, [13], which was filed in this court, and the initial complaint, [1-1] at 4–20, which was filed in state court. Hello was served with Flaherty’s complaint on February 27, 2023. [1] ¶ 5. On March 29, 2023, it filed a notice of removal, invoking this court’s jurisdiction under 28 U.S.C. § 1332(a). Id. ¶ 33. Subsequently, Flaherty filed an amended complaint, [13], and Hello filed this motion to dismiss under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6) for lack of subject-matter jurisdiction and failure to state a claim, [18]. Hello argues that (1) all of Flaherty’s claims should be dismissed because no reasonable consumer would be misled by the “no artificial sweeteners” labeling, (2) Flaherty’s common-law fraud claim should be dismissed because it does not meet the heightened pleading standard of Rule 9(b), (3) Flaherty’s unjust enrichment claim should be dismissed because Flaherty has not shown that her legal remedies are inadequate, (4) Flaherty lacks Article III standing to seek injunctive and declaratory relief, and (5) Flaherty lacks Article III standing to bring claims regarding the toothpastes she did not herself purchase. See generally [18-1]. DISCUSSION Unlike the Supreme Court, which the Constitution itself establishes, “the inferior Federal courts are creatures of Congress.” Henderson v. Kimmel, 47 F. Supp. 635, 645 (D. Kan. 1942); see U.S. Const. art. III, § 1 (“The judicial Power of the United States, shall be vested in one supreme Court, and in such inferior courts as the Congress may from time to time ordain and establish.”); Sheldon v. Sill, 49 U.S. (8 How.) 441, 448–49 (1850); Cary v. Curtis, 44 U.S. (3 How.) 236, 245 (1845). Whether to create inferior federal courts generated “disagreement” among the Framers. Patchak v. Zinke, 583 U.S. 244, 252 (2018) (plurality opinion).

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Bluebook (online)
Flaherty v. Hello Products LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flaherty-v-hello-products-llc-ilnd-2025.