In re: Nestle Boost Nutritional Drink Litigation

District Court, N.D. California·Decided November 7, 2022·No. 3:21-cv-09812·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA

7 BRUCE HORTI, et al., Case No. 21-cv-09812-PJH 8 Plaintiffs,

9 v. ORDER OF DISMISSAL

10 NESTLE HEALTHCARE NUTRITION, Re: Dkt. No. 32 INC., 11 Defendant. 12

13 14 Defendant’s motion to dismiss the third amended complaint came on for hearing 15 before this court on November 3, 2022. Plaintiffs appeared through their counsel, J. 16 Hunter Bryson and Trenton R. Kashima. Defendant appeared through its counsel, 17 Timothy W. Loose. Having read the papers filed by the parties and carefully considered 18 their arguments and the relevant legal authority, and good cause appearing, the court 19 hereby rules as follows. 20 BACKGROUND 21 This is a putative consumer class action regarding advertising of nutritional drinks. 22 Plaintiffs are two California residents and one New York resident. Third Amended 23 Complaint (Dkt. 29, “TAC”) ¶¶ 7–9. Defendant Nestle HealthCare Nutrition, Inc. 24 (“Nestle”) is a Delaware Corporation with a headquarters in Bridgewater, New Jersey. 25 TAC ¶ 10. 26 Defendant sells the Boost Glucose Control and Boost Glucose Control High 27 Protein products in packaging that prominently display and advertise that the products 1 “help manage blood sugar,” and are “designed for people with diabetes.”1 TAC ¶¶ 1–3, 2 35–39. Plaintiffs allege these claims misled them and other consumers because the 3 statements imply that the products control glucose—plaintiffs understood the statements 4 to mean that the products would have some affirmatively therapeutic impact on their 5 blood glucose levels or otherwise mitigate, treat, or prevent pre-diabetes or diabetes. 6 TAC ¶¶ 42–67. Plaintiffs aver, however, that any representation that the products control 7 or manage glucose levels is false. TAC ¶¶ 50–59. Defendant’s own clinical trial 8 concluded that the products were only associated with a lesser rise in glucose levels as 9 compared to another, unidentified nutritional drink, and this is only because the Boost 10 Glucose Control drinks contain less sugar. TAC ¶¶ 50–56. Plaintiffs allege that this is 11 neither what they understood based on defendant’s representations, nor is it what a 12 reasonable consumer would understand from the representations. TAC ¶¶ 57–59. 13 Plaintiffs allege that they specifically purchased the Boost products based on the 14 products’ diabetes-related representations, including the representations that the 15 products control and manage glucose levels. TAC ¶¶ 76–77. 16 Plaintiffs explain that their understanding of the products’ impact is supported by 17 the context in which they’re marketed. Plaintiffs allege that defendant places the 18 products next to or with blood glucose monitoring systems both in stores and online. 19 TAC ¶¶ 45–48. They say such placement only increases the likelihood that consumers 20 would understand that defendant’s products control or manage blood glucose levels. Id. 21 Plaintiffs add that the marketing of diabetes-related products is receiving new 22 attention. In 2021, the Federal Trade Commission (“FTC”) and Food & Drug 23 Administration (“FDA”) sent several cease-and-desist letters to companies suspected of 24 advertising unproven treatments or cures for diabetes. TAC ¶ 61 (citing 25 https://www.ftc.gov/news-events/news/press-releases/2021/09/ftc-sends-cease-desist- 26 1 In the earlier complaints, plaintiffs also challenged a third product, Boost Glucose 27 Control Max. The court held in the order dismissing the SAC, however, that plaintiffs’ 1 demands-10-companies-suspected-making-diabetes-treatment-claims-without). For 2 example, the FTC and FDA noted that a product named, in part, “DIABETES SUPPORT” 3 combined with the statements “Diabetes is caused when the body either resists insulin or 4 does not produce enough; either of which can lead to unbalanced blood glucose levels. 5 Our diabetes support formula assists in keeping blood sugar at an optimum level. . . 6 Diabetes Support helps to balance blood glucose levels” and “May help balance Blood 7 Sugar Levels” were sufficient to make a disease claim. TAC ¶ 61 (citing 8 https://www.ftc.gov/system/files/warning-letters/warning-letter-ar-rahmah_pharm_llc.pdf). 9 Plaintiffs allege that Nestle markets the Boost products as specifically “designed 10 for people with diabetes” in order to charge a price premium for their products. TAC 11 ¶¶ 68–74 (noting that defendant charges more for their Boost Contract products than 12 other competing nutritional drinks). Though plaintiffs do not contend they purchased from 13 this source, on Nestle’s own site, a six-pack of the Nestle Boost Original costs $7.95, 14 while the Boost Glucose Control six-pack sells for $9.49, a premium of 19.3 percent. 15 TAC ¶ 73. Plaintiffs provide a list comparing the price per fluid ounce for the Boost 16 products and five other nutritional drinks on the market to demonstrate that the Boost 17 Glucose Control drinks are more expensive. TAC ¶ 74. Plaintiffs contend they relied on 18 defendant’s glucose- and diabetes-related misrepresentations and were injured by paying 19 more for the products. 20 Procedural History 21 Plaintiffs filed the original complaint in this matter on December 20, 2021, and they 22 filed the first amended complaint on the same day. Dkt. 1, Dkt. 2. The parties then 23 sought leave of court to permit plaintiffs to file a second amended complaint, and leave 24 was granted. Dkt. 9, Dkt. 10. Defendant moved to dismiss that second amended 25 complaint. Dkt. 15. Following briefing and a hearing, the court granted dismissal with 26 leave to amend. Dkt. 27. 27 Plaintiffs filed the now-operative TAC at the beginning of August, bringing claims 1 purchased the [drinks] for personal use and not for resale.” TAC ¶ 79. Plaintiffs assert 2 the following claims against Nestle: 3 • Count I: violation of California’s Unfair Competition Law, Cal. Bus. & Prof. Code 4 § 17200 (UCL); 5 • Count II: violation of California’s False Advertising Law, Cal. Bus. & Prof. Code 6 § 17500 (FAL); 7 • Count III: violation of California’s Consumers Legal Remedies Act, Cal. Civ. Code 8 § 1750 et seq. (CLRA); 9 • Counts IV and V: violations of New York General Business Law §§ 349 and 350 10 (together, GBL); and 11 • Count VI: unjust enrichment. 12 TAC ¶¶ 89–166. 13 In the instant motion, defendant charges that the TAC doesn’t change enough 14 from the earlier pleading. Defendant asks the court to dismiss the case for (1) failure to 15 state a claim and (2) lack of standing. 16 DISCUSSION 17 A. Legal Standards 18 1. Failure to State a Claim – Rule 12(b)(6) 19 A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) tests for the 20 legal sufficiency of the claims alleged in the complaint. Ileto v. Glock, 349 F.3d 1191, 21 1199–1200 (9th Cir. 2003). Under Federal Rule of Civil Procedure 8, which requires that 22 a complaint include a “short and plain statement of the claim showing that the pleader is 23 entitled to relief,” Fed. R. Civ. P. 8(a)(2), a complaint may be dismissed under Rule 24 12(b)(6) if the plaintiff fails to state a cognizable legal theory, or has not alleged sufficient 25 facts to support a cognizable legal theory. Somers v. Apple, Inc., 729 F.3d 953, 959 (9th 26 Cir. 2013). 27 While the court is to accept as true all the factual allegations in the complaint, 1 accepted. Ashcroft v. Iqbal, 556 U.S. 662, 678–79 (2009). The complaint must proffer 2 sufficient facts to state a claim for relief that is plausible on its face.

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

In re: Nestle Boost Nutritional Drink Litigation, (N.D. Cal. 2022).

In re: Nestle Boost Nutritional Drink Litigation (In re: Nestle Boost Nutritional Drink Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Foman v. Davis
371 U.S. 178 (Supreme Court, 1962)
Warth v. Seldin
422 U.S. 490 (Supreme Court, 1975)
Kokkonen v. Guardian Life Insurance Co. of America
511 U.S. 375 (Supreme Court, 1994)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Lee v. City Of Los Angeles
250 F.3d 668 (Ninth Circuit, 2001)
Stacie Somers v. Apple, Inc.
729 F.3d 953 (Ninth Circuit, 2013)
Abagninin v. Amvac Chemical Corp.
545 F.3d 733 (Ninth Circuit, 2008)
Kearns v. Ford Motor Co.
567 F.3d 1120 (Ninth Circuit, 2009)
Williams v. Gerber Products Co.
552 F.3d 934 (Ninth Circuit, 2008)
Sanders v. Brown
504 F.3d 903 (Ninth Circuit, 2007)
Consumer Advocates v. Echostar Satellite Corp.
8 Cal. Rptr. 3d 22 (California Court of Appeal, 2003)
County of Los Angeles v. State Board of Equalization
129 Cal. Rptr. 2d 209 (California Court of Appeal, 2003)
Jacquelyn McGee v. S-L Snacks National, LLC
982 F.3d 700 (Ninth Circuit, 2020)