Grausz v. The Hershey Company

District Court, S.D. California·Decided August 15, 2024·No. 3:23-cv-00028·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 EVA GRAUSZ, on behalf of herself, all Case No.: 23-cv-00028-AJB-SBC others similarly situated, and the general 12 public, ORDER GRANTING IN PART AND 13 DENYING IN PART DEFENDANT’S Plaintiff, MOTION TO DISMISS PLAINTIFF’S 14 THIRD AMENDED COMPLAINT 15 v. (Doc. No. 44) 16 THE HERSHEY COMPANY, 17 Defendant. 18

19 Presently pending before the Court is Defendant the Hershey Company’s motion to 20 dismiss (Doc. No. 44) Plaintiff Eva Grausz’s Third Amended Complaint (“TAC”) (Doc. 21 No. 43) pursuant to Federal Rule of Civil Procedure 12(b)(6). Plaintiff filed an opposition 22 to the motion to dismiss, (Doc. No. 46), to which Hershey replied, (Doc. No. 47). Pursuant 23 to Civil Local Rule 7.1.d.1, the Court finds the instant matter suitable for determination on 24 the papers and without oral argument. For the reasons stated herein, the Court GRANTS 25 IN PART and DENIES IN PART Hershey’s motion to dismiss Plaintiff’s TAC. 26 /// 27 /// 28 1 I. BACKGROUND 2 Defendant Hershey manufactures and sells various dark chocolate products under 3 the Hershey’s and Lily’s brand names. (TAC, Doc. No. 43, ¶ 1.) In this putative class 4 action, Plaintiff alleges recent independent lab testing found that several of Hershey’s and 5 Lily’s chocolate products contain lead and cadmium, including Hershey’s Special Dark 6 Mildly Sweet Chocolate, Lily’s Extremely Dark Chocolate 85% Cocoa, Lily’s Extra Dark 7 Chocolate 70% Cocoa, Lily’s Original Dark Chocolate Stevia Sweetened 55% Cocoa Non 8 GMO, and Lily’s Sea Salt Extra Dark Chocolate 70% - Stevia Sweetened (the “Products”), 9 and that those metals are unsafe at any level. (Id. ¶¶ 3–4.) Plaintiff further alleges Hershey 10 has been on notice that its Products contain high levels of heavy metals since 2014, but that 11 Hershey has failed to effectively reduce or remove heavy metals from the Products. (Id. 12 ¶ 16.) Plaintiff’s allegations are based on a December 2022 article from Consumer Reports 13 and a March 2023 article by As You Sow (“AYS”). (Id. ¶¶ 13–15.) 14 Plaintiff now asserts that the cadmium levels in Lily’s Extremely Dark Chocolate 15 present an “unreasonable risk of harm.” (Id. at ¶ 32.) Plaintiff refers to Centers for Disease 16 Control (“CDC”) data which establishes Minimal Risk Levels for various toxins, which 17 contends that those levels should be less than 0.0002 mg/kg/day. (Id. at ¶ 33.) If a 128- 18 pound person, Plaintiff argues, eats a single Lily’s Extremely Dark Chocolate bar, then that 19 alone would exceed the CDC’s recommended limit. (Id. at 34.) Plaintiff further contends 20 that people who consume these chocolate bars regularly are exposed to an “unreasonable 21 risk of harm” of renal disease. (Id. at 35.) 22 Plaintiff states she “regularly purchased Lily’s Extremely Dark Chocolate 85% 23 Cocoa[,]” “often making her purchase” in San Diego, California. (Id. ¶ 60.) Plaintiff 24 contends Hershey’s advertising did not feature warnings that the Products contained toxic 25 amounts of heavy metals. (Id. ¶¶ 55–57.) Rather, Hershey “touts its safety standards and 26 how it vets its ingredient sources, and highlights the public trust that it has garnered as a 27 result . . . .” (Id. ¶ 41.) 28 1 Plaintiff asserts she and the purported class were exposed to, saw, read, and 2 understood the labels of the products, which omitted the presence of heavy metals, and that 3 they relied upon the omission of warnings about the potential dangers of the Products 4 containing heavy metals when making the decision to purchase the Products. (Id. ¶ 50.) 5 Had she known the Products contained heavy metals, Plaintiff claims she and the purported 6 class would not have purchased the Products or would have paid less for them. (Id. ¶ 52.) 7 While she wishes to purchase the Products in the future, she “may not be able to reasonably 8 determine whether the lead or cadmium in the Products has been addressed” without an 9 injunction because she cannot rely on the false representations in Hershey’s current 10 advertising and marketing scheme. (Id. ¶ 68.) 11 Based on the foregoing, Plaintiff initiated this action on behalf of herself and as a 12 representative of all those similarly situated for: (1) Violation of California’s Unfair 13 Competition Law (“UCL”), Cal. Bus. & Prof. Code § 17200 et seq. (Count I); Violation of 14 California’s False Advertising Law (“FAL”), Cal. Bus. & Prof. Code § 17500 et seq. 15 (Count II); Violation of California’s Consumer Legal Remedies Act (“CLRA”), Cal. Bus. 16 & Prof. Code § 1750 et seq. (Count III); Breach of Implied Warranty of Merchantability, 17 Cal. Commercial Code § 2314 (Count IV); and Unjust Enrichment (Count V). (See 18 generally TAC.) 19 In 2015, AYS sent California’s Proposition 65 notices to various chocolate 20 manufacturers, including Hershey, asserting their products contained lead and cadmium at 21 levels exceeding California’s MADLs. (Doc. No. 44 at 6.) In February 2018, the California 22 Superior Court entered a consent judgment among AYS, Hershey, and others (the “Consent 23 Judgment”), after finding the proposed judgment “me[t] the requirements of [California 24 law] and [was] in the public interest,” and the Consent Judgment was thereafter endorsed 25 by California’s Attorney General. (Id. (quoting Consent Judgment, Case No. CGC-15- 26 548791 (Cal. Super. Ct. San Francisco Cnty. Feb. 15, 2018) at 2–20).) The Consent 27 Judgment raised the MADL thresholds to Hershey’s products and specified that 28 compliance with the new limits would constitute compliance with Proposition 65 regarding 1 lead and/or cadmium in chocolate. (Id.) The Consent Judgment operated as a “full, final, 2 and binding resolution” of AYS’s claims on behalf of itself and of the general public. (Id. 3 at 13 (internal citation omitted).) 4 II. LEGAL STANDARD 5 A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) tests the 6 pleadings’ legal sufficiency and allows a court to dismiss a complaint if the court finds the 7 plaintiff has failed to state a claim upon which relief may be granted. Navarro v. Block, 8 250 F.3d 729, 732 (9th Cir. 2001). As a matter of law, the court may dismiss the complaint 9 for either a lack of a cognizable legal theory, or insufficient facts under a cognizable legal 10 claim. SmileCare Dental Grp. v. Delta Dental Plan of Cal., 88 F.3d 780, 783 (9th Cir. 11 1996) (citation omitted). However, a complaint survives a motion to dismiss if it contains 12 “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. 13 Twombly, 550 U.S. 544, 570 (2007). Notwithstanding such deference, the reviewing court 14 need not accept legal conclusions as true. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). 15 Furthermore, it is improper for the court to assume “the [plaintiff] can prove facts that [he 16 or she] has not alleged . . . .” Associated Gen. Contractors of Cal., Inc. v. Cal. State Council 17 of Carpenters, 459 U.S. 519, 526 (1983).

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

Grausz v. The Hershey Company, (S.D. Cal. 2024).

Grausz v. The Hershey Company (Grausz v. The Hershey Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Daniels-Hall v. National Education Ass'n
629 F.3d 992 (Ninth Circuit, 2010)
Clemens v. DaimlerChrysler Corp.
534 F.3d 1017 (Ninth Circuit, 2008)
Birdsong v. Apple, Inc.
590 F.3d 955 (Ninth Circuit, 2009)
LiMandri v. Judkins
52 Cal. App. 4th 326 (California Court of Appeal, 1997)
Daugherty v. American Honda Motor Co., Inc.
51 Cal. Rptr. 3d 118 (California Court of Appeal, 2006)
United States v. Southern California Edison Co.
300 F. Supp. 2d 964 (E.D. California, 2004)
Robert Hodsdon v. Mars, Inc.
891 F.3d 857 (Ninth Circuit, 2018)
Ray Askins v. Usdhs
899 F.3d 1035 (Ninth Circuit, 2018)
Kasky v. Nike, Inc.
45 P.3d 243 (California Supreme Court, 2002)
Kwikset Corp. v. Superior Court
246 P.3d 877 (California Supreme Court, 2011)
McHenry v. Renne
84 F.3d 1172 (Ninth Circuit, 1996)
389 Orange Street Partners v. Arnold
179 F.3d 656 (Ninth Circuit, 1999)
Navarro v. Block
250 F.3d 729 (Ninth Circuit, 2001)
Thompson v. Davis
295 F.3d 890 (Ninth Circuit, 2002)
Welk v. Beam Suntory Import Co.
124 F. Supp. 3d 1039 (S.D. California, 2015)