Fust v. Gilead Sciences, Inc.

CourtDistrict Court, E.D. California
DecidedFebruary 22, 2024
Docket2:23-cv-02853
StatusUnknown

This text of Fust v. Gilead Sciences, Inc. (Fust v. Gilead Sciences, 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
Fust v. Gilead Sciences, Inc., (E.D. Cal. 2024).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 ----oo0oo---- 11 12 DEBORAH FUST, INDIVIDUALLY AND No. 2:23-cv-2853 WBS DB ON BEHALF OF ALL OTHERS 13 SIMILARLY SITUATED; AND EDWARD PIMENTEL, INDIVIDUALLY AND ON 14 BEHALF OF ALL OTHERS SIMILARLY MEMORANDUM AND ORDER SITUATED, 15 Plaintiffs, 16 v. 17 GILEAD SCIENCES, INC., A 18 DELAWARE CORPORATION REGISTERED TO DO BUSINESS AND HEADQUARTERED 19 IN CALIFORNIA, 20 Defendant. 21 22 ----oo0oo---- 23 Plaintiffs Deborah Fust and Edward Pimentel originally 24 filed this putative class action against defendant Gilead 25 Sciences, Inc. (“Gilead”) in Shasta County Superior Court, 26 seeking monetary and equitable relief pursuant to California’s 27 Consumers Legal Remedies Act (Claim 1); False Advertising Law 28 (Claim 2); Unfair Competition Law (Claim 3); money had and 1 received (Claim 4); negligent misrepresentation (Claim 5); and 2 unjust enrichment (Claim 6). Plaintiffs allege that defendant 3 exaggerated the benefits and downplayed the dangers of its drug 4 remdesivir (sold under the brand name Veklury), an antiviral 5 medication indicated for COVID-19 treatment. 6 The court now considers plaintiffs’ motion to remand 7 (Docket No. 28) and defendant’s motion to dismiss (Docket No. 8 10). 9 I. Motion to Remand 10 A. CAFA Jurisdiction 11 Defendant removed this action from Shasta County 12 Superior Court pursuant to the Class Action Fairness Act 13 (“CAFA”), 28 U.S.C. § 1332(d). (See Removal (Docket No. 1) at 14 2.) CAFA gives federal district courts original jurisdiction 15 over class actions in which the class members number at least 16 100, at least one plaintiff is diverse in citizenship from any 17 defendant, and the aggregate amount in controversy exceeds $5 18 million, exclusive of interest and costs. 28 U.S.C. § 19 1332(d)(2). 20 Plaintiffs argue that defendant has not sufficiently 21 demonstrated that the amount in controversy under CAFA is met. 22 In the alternative, plaintiffs urge the court to decline 23 jurisdiction on discretionary grounds, notwithstanding the 24 court’s diversity jurisdiction under CAFA. 25 1. Amount in Controversy Under CAFA 26 “[W]hen the defendant’s assertion of the amount in 27 controversy is challenged by plaintiffs in a motion to remand, 28 the Supreme Court has said that both sides submit proof and the 1 court then decides where the preponderance lies.” Ibarra v. 2 Manheim Invs., Inc., 775 F.3d 1193, 1198 (9th Cir. 2015) (citing 3 Dart Cherokee Basin Operating Co., LLC v. Owens, 574 U.S. 81, 88- 4 89 (2014)). Proof “includes affidavits, declarations, or ‘other 5 summary-judgment-type evidence relevant to the amount in 6 controversy at the time of removal.’” Sifuentes v. Roofline, 7 Inc., No. 2:20-CV-00052 WBS KJN, 2020 WL 1303796, at *1 (E.D. 8 Cal. Mar. 19, 2020) (citing Ibarra, 775 F.3d at 1197). See also 9 Gonzales v. CarMax Auto Superstores, LLC, 840 F.3d 644, 648-49 10 (9th Cir. 2016) (amount in controversy includes “damages 11 (compensatory, punitive, or otherwise) and the cost of complying 12 with an injunction, as well as attorneys’ fees awarded under fee 13 shifting statutes”). 14 Plaintiffs seek a corrective advertising campaign and 15 recall of advertising materials; disgorgement of defendant’s 16 revenues from Veklury; and actual and punitive damages and 17 attorney’s fees. (See generally Compl., Prayer for Relief.) 18 Defendant argues that any one of these remedies likely places the 19 amount in controversy north of $5 million, and at any rate the 20 remedies taken together clearly surpass the $5 million bar. 21 The court agrees. A corrective campaign alone, for 22 instance, is more likely than not to cost defendant over $5 23 million. In support, defendant provides several cases estimating 24 costs of a corrective campaign that range from $9.8 million to 25 $41.8 million. See Stone Brewing Co., LLC v. MillerCoors LLC, 26 3:18-cv-00331-BEN-MDD, 2023 WL 6450199, at *8 (S.D. Cal. Sept. 27 28, 2023) ($41.8 million); U–Haul v. Jartran, Inc., 793 F.2d 1034 28 (9th Cir. 1986) ($13.6 million); San Diego Comic Convention v. 1 Dan Farr Prods., 14-cv-1865 AJB (JMA), 2017 WL 4869152, at *2 2 (S.D. Cal. Oct. 27, 2017) ($9.8 million); Cross-Fit, Inc. v. 3 Nat’l Strength & Conditioning Ass’n, 14-cv-1191-JLS(KSC), 2018 WL 4 3491854, at *7 (S.D. Cal. July 18, 2018) ($15 million). 5 Defendant also points out that in 2009, the California Attorney 6 General announced an agreement with Bayer Corporation regarding 7 its oral contraceptives, requiring Bayer to run a corrective 8 advertising campaign that cost $20 million. (See Removal at 4 & 9 n.2.) 10 Plaintiffs, by contrast, offer no competing facts 11 bearing on the likely cost of a corrective campaign, or on any of 12 the other injunctive or monetary relief that they seek. Instead, 13 plaintiffs only assert the following: “[D]efendant’s analysis 14 purporting that the $5 million threshold is exceeded, is at best 15 highly speculative.” (Mot. to Remand (Docket No. 28) at 13.) 16 As the court must presently “decide[] where the 17 preponderance lies” after weighing both sides’ proof, Ibarra, 775 18 F.3d at 1198, the court concludes that the amount in controversy 19 is met, and that it accordingly has jurisdiction over this suit 20 pursuant to CAFA. 21 2. CAFA’s Discretionary Exception 22 Plaintiffs also urge the court to decline jurisdiction 23 under 28 U.S.C. § 1332(d)(3), which provides that a court may, 24 “in the interests of justice and looking at the totality of the 25 circumstances,” decline jurisdiction if the citizenship of 26 between one-third and two-thirds of a putative class, the 27 citizenship of the primary defendants, and the state in which the 28 action was originally filed are all the same state. See id. § 1 1332(d)(3). 2 Plaintiffs assert, without support, that it “seems 3 reasonable enough” to assume that at least one-third of the 4 putative class here are California citizens because of 5 California’s large population and its “massive healthcare 6 infrastructure.” (Mot. to Remand at 14.) This is not enough. 7 “Once CAFA jurisdiction has been established . . . the burden 8 falls on the party seeking remand . . . to show that an exception 9 to CAFA jurisdiction applies. To meet this burden, the moving 10 party must provide some facts in evidence from which the district 11 court may make findings regarding class members’ citizenship.” 12 Adams v. W. Marine Prod., Inc., 958 F.3d 1216, 1221 (9th Cir. 13 2020) (cleaned up). See also Brinkley v. Monterey Fin. Servs., 14 Inc., 873 F.3d 1118, 1121 (9th Cir. 2017) (“Congress passed CAFA 15 with the overall intent . . . to strongly favor the exercise of 16 federal diversity jurisdiction over class actions with interstate 17 ramifications.”) (cleaned up). 18 Accordingly, the court will not decline CAFA 19 jurisdiction pursuant to Section 1332(d)(3). 20 B. Quackenbush, Saldana, Granato 21 The remainder of plaintiffs’ arguments for remand, such 22 as they are, center on three cases that plaintiffs devote entire 23 pages of their briefs to excerpt from.

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Bluebook (online)
Fust v. Gilead Sciences, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/fust-v-gilead-sciences-inc-caed-2024.