In re NJOY, Inc. Consumer Class Action Litigation

120 F. Supp. 3d 1050, 98 Fed. R. Serv. 214, 2015 U.S. Dist. LEXIS 109133, 2015 WL 4881091
CourtDistrict Court, C.D. California
DecidedAugust 14, 2015
DocketCASE NO. CV 14-00428 MMM (JEMx)
StatusPublished
Cited by25 cases

This text of 120 F. Supp. 3d 1050 (In re NJOY, Inc. Consumer Class Action Litigation) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re NJOY, Inc. Consumer Class Action Litigation, 120 F. Supp. 3d 1050, 98 Fed. R. Serv. 214, 2015 U.S. Dist. LEXIS 109133, 2015 WL 4881091 (C.D. Cal. 2015).

Opinion

[1061]*1061ORDER DENYING PLAINTIFFS’ • MOTION FOR CLASS CERTIFICATION

MARGARET M. MORROW, UNITED STATES DISTRICT JUDGE

On January 17, 2014, Ben Z. Halberstam filed this putative class action on his own behalf and on behalf of a class of similarly situated Californians against NJOY, Inc., and -Sottera, Inc. (collectively, “NJOY”).1 On April 29, 2014, pursuant' to the parties’ stipulation,2 the court consolidated Halber-stam’s action with Eric McGovern v. NJOY, Inc., et al., Case No. CV14-00427 MMM (RZx).3 Halberstam and McGovern filed a first amended consolidated complaint on May 30, 2014.4 Thereafter, on July 9, 2014, they filed a second amended consolidated complaint, joining Kathryn Thomas and Paula Kolano as named plaintiffs.5 Thomas seeks to represent a Florida class, while Kolano seeks to represent a New York class. On August 11, 2014, NJOY filed a motion to dismiss the second amended complaint,6 which the court granted on October 20, 2014.7 As a result, [1062]*1062on November 10, 2014, Halberstam, Thomas, and McGovern filed a third amended consolidated complaint omitting certain claims and dropping Kolano as a plaintiff.8 On December 10, 2014, NJOY filed a motion to dismiss the third amended complaint.9

On May 20, 2015, while the motion to dismiss was still under submission, plaintiff Eric McGovern filed a notice of voluntary dismissal of his individual claims pursuant to Rule 41(a)(1) of the Federal Rules of Civil Procedure.10 Seven days later, on May 27, 2015, the court granted in part and denied in part NJOY’s motion to dismiss the third amended complaint.11 It denied the motion to dismiss Halberstam’s and Thomas’ (collectively, “plaintiffs”) claims to the extent they were based on fraudulent omissions, and/or on NJOY’s “Resolution Solution” and “Friends Don’t Let Friends Smoke” advertisements.12 The court granted the motion to the extent the claims were based on NJOY’s “Try Something New in Bed” advertisement.13 On June 16, 2015, plaintiffs filed a fourth amended complaint,14 which NJOY answered on July 6, 2015.15

On May 21, 2015, plaintiffs filed a motion for class certification.16 NJOY opposes the motion.17 It also filed two motions to strike declarations filed in support of class certification,18 which plaintiffs oppose.19

I. FACTUAL BACKGROUND

A. Background Concerning Electronic Cigarettes

An electronic cigarette (“e-cigarette”) is a device that simulates a traditional tobacco cigarette.20 E-cigarettes use a battery-operated heating mechanism to convert a cartridge containing glycerin, glycol, natural and artificial flavors, and usually nicotine, into vapor, which the user inhales as he or she would a traditional cigarette.21 Since 2011, e-cigarettes have grown in popularity among smokers in the United States.22 NJOY is the most popular brand [1063]*1063of e-cigarette in the nation, and has captured more than forty pércent of the e-cigarette market.23 This action concerns NJOY e-cigarettes marketed under the trade names “NJOY,” “NJOY Kings,” “OneJoy,” and “NPRO.” 24

As a result of the increasing popularity of e-cigarettes among consumers, government agencies and research facilities have conducted several studies regarding their potential health impacts and risks.25 These studies have concluded, among other things, that: (1) e-cigarettes ' contain measurable amounts of carcinogens, toxins, and other contaminants that are, or potentially are, disease-causing; (2) e-cigarettes have potentially harmful side effects; and (3) more studies are needed to determine the full range of health dangers associated with the use of e-cigarettes.26

In 2009, for example, the United States Food and Drug Administration (“FDA”) conducted a study of two brands of e-cigarettes, one of which was NJOY.27 The FDA study concluded that NJOY e-cigarettes contained detectable levels of known carcinogens and toxic chemicals, and that the quality control processes used to manufacture them were inconsistent or nonexistent, as evidenced by the varying levels of nicotiné inhaled with each puff.28 Following the study, the FDA released a consumer health brochure and safety alert reflecting the study’s findings.29 In June 2012, a study published in the Journal of the American College of Chest Physicians concluded that e-cigarettes have “immediate adverse physiological] effects after short-term use that are similar to some of the effects seen in tobacco smoking,” and urged that further research be conducted concerning the health effects' of e-cigarettes.30

In 2013, the German Cancer Research Center published á comprehensive' report on é-cigarettes that reviewed studies and literature in the field.31 The report concluded, inter alia, that e-cigarettes could not currently be “rated as safe”; that consumers typically do not have access to reliable information concerning product quality; that e-cigarettes have technical flaws (e.g., leaking ’cartridges, accidental intake of nicotine when replacing cartridges, and the possibility of unintended overdqse); and that manufacturers provide insufficient information about the ingredients used in e-cigarettes.32 The-, report also noted that-the liquids in e-cigarettes contain- harmful substances and ingredients that irritate a user’s airways and can lead to allergic reactions; that adverse health effects for third party bystanders could not be excluded;, and that continuing health effects on users were unknown given the lack of studies concerning the effects of long-term use of e-cigarettes.33

The World Health Organization (‘WHO”) expressed concerns regarding the presence of carcinogens and other toxic chemicals in e-cigarettes in May and July 2013,34 concerns which were raised again in August 2013 in a separate French report on the subject.35 The University of California at Riverside also [1064]*1064published -a study in 2013, reporting that there were .“harmful and potentially harmful chemicals,” as well as metal and silicate particles, in e-cigarette aerosols inhaled by users.36 Additionally, two studies published at the end of 2013 concluded that e-cigarettes may pose health risks not associated with the use of traditional cigarettes,37 and that they may. not significantly reduce the risk for heart disease associated with traditional- cigarettes.38

B. Allegedly Misleading Advertisements and Representations During the Class Period

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Bluebook (online)
120 F. Supp. 3d 1050, 98 Fed. R. Serv. 214, 2015 U.S. Dist. LEXIS 109133, 2015 WL 4881091, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-njoy-inc-consumer-class-action-litigation-cacd-2015.