Haley v. Merial, Ltd.

292 F.R.D. 339, 2013 U.S. Dist. LEXIS 46825, 2013 WL 1339058
CourtDistrict Court, N.D. Mississippi
DecidedApril 1, 2013
DocketCivil Action No. 4:09-CV-00094-GHD-JMV
StatusPublished
Cited by6 cases

This text of 292 F.R.D. 339 (Haley v. Merial, Ltd.) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haley v. Merial, Ltd., 292 F.R.D. 339, 2013 U.S. Dist. LEXIS 46825, 2013 WL 1339058 (N.D. Miss. 2013).

Opinion

MEMORANDUM OPINION DENYING PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION

GLEN H. DAVIDSON, Senior District Judge.

Presently before the Court is Plaintiffs’ motion for class certification [248]. Having carefully considered the motions, responses, replies, class-certification hearing testimony and exhibits, and parties’ supplementations, the Court finds that the motion for class certification [248] should be denied.

A. Factual and Procedural Overview

Defendants Merial, Limited and Merial, LLC manufacture, market, and sell Heart-Gard and HeartGard Plus, heartworm preventatives for dogs administered monthly in the form of beef-flavored chewable tablets containing the active ingredients ivermectin and pyrantel. Merial apparently sells Heart-Gard and HeartGard Plus at wholesale prices to veterinarians, who set the retail prices of the drugs, and then prescribe the drug to particular dogs, whose owners administer the doses to the dogs.

Plaintiffs Neal Haley, Sherry Haley, and Clayton Davis (“Plaintiffs”)1 bring this putative RICO class action against Merial alleging that their dogs and a multitude of other dogs have contracted heartworms, despite their reliance on HeartGard or HeartGard Plus, which are marketed as heartworm preventatives.2 Plaintiffs assert that Merial initially marketed HeartGard and HeartGard Plus as 100% effective against heartworms despite Merial’s actual knowledge that such efficacy claims were false.3 Plaintiffs further assert that the lack of effectiveness of Heart-Gard and HeartGard Plus became apparent once numerous post-approval adverse drug events were reported. Plaintiffs allege that Merial’s actions constitute violations of RICO, certain provisions of the Federal Food, Drug, and Cosmetic Act (the “FDCA”), and 18 U.S.C. §§ 1341 and 1343.

Although Merial disputes most of the Plaintiffs’ allegations against them—including that Merial ever engaged in false or fraudulent conduct, or that it engaged in any scheme to defraud veterinarians, pet care professionals, American consumers, or Plaintiffs—the following facts apparently are not in dispute: The Food and Drug Administration (the “FDA”) approved HeartGard and HeartGard Plus for use in dogs to help prevent canine heartworm disease and for the treatment and control of asearids and hookworms. Prior to the time Plaintiffs filed their initial complaint, Merial distributed [344]*344promotional and/or marketing material related to HeartGard and HeartGard Plus to veterinary clinics throughout the United States wherein Merial represented that HeartGard and HeartGard Plus were 100% effective against heartworms. The PDA subsequently sent Merial and its competitors letters requesting that the drug manufacturers stop promoting the heartworm preventatives as 100% effective and modify their labels. In 2005, the FDA sent Merial a letter repeating its request that Merial discontinue promotion and advertising activities claiming 100% effectiveness at heartworm prevention.4 In 2006, the FDA sent Merial warning letters stating that Merial had promotional material on websites regarding HeartGard and Heart-Gard Plus which overstated the efficacy of the drugs and constituted misbranding in violation of federal law.5 The FDA instructed Merial to present to the FDA a comprehensive plan for correcting the false impressions given to the public about the effectiveness of the drugs. In 2007, the FDA sent Merial a letter stating that a Merial ad had overstated the effectiveness of HeartGard and Heart-Gard Plus with respect to preventing and controlling zoonotic diseases. Merial agreed to remove certain language from promotional materials concerning the 100% effectiveness of HeartGard and HeartGard Plus. The parties apparently agree that Merial has never specifically instructed veterinarians’ offices to remove the advertising and promotional materials containing the 100% efficacy claims.

Plaintiffs allege that despite receiving warning letters from the FDA concerning the marketing and promotion of HeartGard and HeartGard Plus as 100% effective at heartworm prevention, Merial continued and even strengthened its deceptive advertising, until Merial finally agreed to discontinue promotion and advertising 100% efficacy for HeartGard and HeartGard Plus. Plaintiffs allege that although Merial apparently amended some of its promotional material to remove “100%,” Merial took no other action to correct the impression of 100% effectiveness previously given to nationwide veterinarians, pet care professionals, and dog owners. Plaintiffs aver that Merial continues to benefit from fraudulent advertisements that have been placed on the Internet either by Merial or by others who sell Merial’s products with Merial’s knowledge.

Plaintiffs further allege that Merial engaged in the practice of employing fraudulent scare tactics to encourage sales of HeartGard and HeartGard Plus to prevent the transmission of certain zoonotic diseases from dogs to humans, including certain diseases caused by roundworms and hookworms in its advertising and promotion of HeartGard and Heart-Gard Plus. Plaintiffs aver that despite the FDA’s warnings with respect to the claims of 100% effectiveness in preventing the transmission of certain zoonotic diseases to humans, Merial continues to furnish veterinarians and other pet care professionals with false promotional materials that remain on display in veterinarians’ offices for consumers to review.

Plaintiffs allege the following facts in support of their claims: Named Plaintiffs Neal and Sherry Haley (the “Haleys”) have two dogs, a chocolate Labrador retriever named Mack and a rat terrier named Buddy. Mack contracted heartworms while on a different heartworm preventative medication than HeartGard Plus. After Mack was treated for heartworms, the Haleys consulted with their veterinarian concerning a change of medication for Mack to prevent another infestation of heartworms. Mack’s veterinarian recommended that the Haleys change Mack’s heartworm medication to HeartGard Plus, because it was guaranteed to be 100% effective against heartworms. Neal Haley reviewed some of the promotional material in the veterinarian’s office, and comforted by the claims of 100% efficacy, agreed to place Mack on a regimen of monthly doses of HeartGard Plus in February of 2006—even though HeartGard Plus was more expensive than Mack’s previous heartworm medication. Mack tested negative for heartworms in Au[345]*345gust of 2006. Although Neal Haley administered the doses of HeartGard Plus to Mack in full and complete compliance with the instructions from Merial, Mack contracted and tested positive for heartworms in February of 2009, while on HeartGard Plus. Neal Haley testified at the class-certification hearing that he decided not to put Mack through heartworm treatment, because of what Mack had gone through during heartworm treatment while Mack was on the previous heart-worm preventative, and also due to Mack’s advanced age and his veterinarian’s advice concerning the same.

Later, in August of 2007, the Haleys acquired a second dog, Buddy, who was a rat temer. Buddy tested negative for heart-worms. Neal and Sherry Haley began giving Buddy HeartGard Plus in approximately August of 2007, in reliance of the 100% efficacy claims with respect to HeartGard Plus.

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292 F.R.D. 339, 2013 U.S. Dist. LEXIS 46825, 2013 WL 1339058, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haley-v-merial-ltd-msnd-2013.