In Re Trader Joe's Company Dark Chocolate Litigation

District Court, S.D. California·Decided March 27, 2025·No. 3:23-cv-00061·Unknown

Opinion

IN RE TRADER JOE’S COMPANY Case No.: 3:23-cv-0061-RBM-DTF DARK CHOCOLATE LITIGATION ORDER GRANTING DEFENDANT’S

JUDGMENT

[Doc. 85]

Plaintiffs brought this class action against Defendant Trader Joe’s Company (“Defendant” or “Trader Joe’s”) on behalf of purchasers of specific Trader Joe’s dark chocolate bars. Plaintiffs allege the dark chocolate bars contain or have a material risk of containing lead, cadmium, and arsenic (collectively, “Heavy Metals”) that were not disclosed on the package labels. Defendant now moves for summary judgment on Plaintiffs’ claims brought under New York, Washington, and Illinois state law based on two issues. (Doc. 85-1.) Defendant argues it is entitled to summary judgment because Defendant did not have exclusive knowledge that the dark chocolate bars contained or had a material risk of containing Heavy Metals, a requirement for each state law claim, and because Illinois state law does not permit a pure-omission claim. (Id.) Plaintiffs have filed an Opposition arguing that Defendant’s exclusive knowledge is a factual dispute that must be decided by a jury and that Plaintiffs’ Illinois fraud-by-omission claim is not precluded. (Doc. 99.) Defendant has filed a Reply. (Doc. 100.) Pursuant to Civil Local Rule 7.1(d)(1), the Court finds the instant matter suitable for determination on the papers and without oral argument. For the reasons set forth below, Defendant Trader Joe’s Company’s Motion for Summary Judgment (“the Motion”) is A. Procedural History The operative complaint in this action is Plaintiffs’ Consolidated Class Action Complaint (“CAC”). (Doc. 20) On March 27, 2024, the Court granted in part Defendant’s Motion to Dismiss the CAC and dismissed Plaintiffs’ claims for: violations of California’s Unfair Competition Law (“UCL”), California Business & Professions Code §§ 17200 et seq.; violations of California’s False Advertising Law (“FAL”), California Business & Professions Code §§ 17500, et seq.; violation of California’s Consumers Legal Remedies Act (“CLRA”), California Civil Code §§ 1750, et seq.; Breach of the Implied Warranty of Merchantability; and Unjust Enrichment. (Doc. 55.) The Court granted Plaintiffs leave to amend these claims. (Id. at 22, 27, 34). However, Plaintiffs elected to stand on the CAC rather than amend. (Doc. 60.) Plaintiffs are proceeding only on the claims of the CAC that were not dismissed: (1) violation of Deceptive Practices Act, New York General Business Law (“GBL”) § 349; (2) violation of New York GBL § 350; (3) violation of Washington’s Unfair Business Practices and Consumer Protection Act, RCW §§ 19.86.010, et seq. (“WCPA”); and (4) violation of Illinois Consumer Fraud and Deceptive Business Practices Act, 815 Illinois Compiled Statute §§ 505/1, et seq. (“ICFA”). (CAC ¶¶ 180–2871.) ///

1 The Court cites the paragraphs of the CAC and the CM/ECF electronic pagination for cites to the Parties’ briefs. Exhibits are cited by exhibit number. Defendant Answered the CAC (Doc. 62), and the assigned Magistrate Judge held an Early Neutral Evaluation Conference and Case Management Conference on July 12, 2024. (Doc. 82.) The Magistrate Judge set an August 26, 2024 deadline for Defendant to file an anticipated motion for summary judgment. (Id.) The Magistrate Judge did not issue a full scheduling order because Defendant was planning to file a limited motion for summary judgment on two threshold legal issues—Defendant’s exclusive knowledge2 of the potential presence of Heavy Metals in the Products and whether Plaintiffs could pursue an omission claim under the ICFA. (Doc. 82.) Defendant filed the Motion on August 26, 2024 raising only these two issues. (Docs. 85–89.) At the time the Motion was filed, the Parties agreed they would jointly move for a modified briefing schedule to allow Plaintiffs sufficient time to identify the discovery needed to oppose the Motion. (Doc. 92 at 2.) The Parties sought and obtained two extensions of Plaintiffs’ time to file an opposition to the Motion to allow Plaintiffs additional time to complete necessary discovery. (Docs. 92, 95 (Joint Motions); Docs. 93, 96 (orders granting extensions).) Plaintiffs filed their Opposition to Plaintiffs’ Motion on January 21, 2025. (Doc. 99.3) Defendant filed its Reply on January 31, 2025. (Doc. 100.)

2 The Court follows the Parties’ categorizing of this requirement as an “exclusive knowledge” requirement, recognizing that it is based on the premise that an omission of material information is deceptive or misleading because the omitted information is not reasonably obtainable by consumers. The specific standards under each state’s laws that consider whether the information is reasonably obtainable, easily discoverable, or available are addressed below. 3 Plaintiffs accuse Defendant of “[l]ooking to avoid Plaintiffs’ ability to obtain a full record on which to prove their case, including expert discovery[,]” and characterize Defendant’s Motion as a “premature.” (Doc. 99 at 9.) However, Rule 56(b) allows “a party [to] file a motion for summary judgment at any time until 30 days after the close of all discovery.” Additionally, Plaintiffs have not opposed the Motion under Federal Rule of Civil Procedure 56(d), which allows courts to defer or deny a summary judgment motion, allow time for the nonmovant to obtain needed discovery or declarations, or “issue any other appropriate order,” but only “[i]f [the] nonmovant shows by affidavit or declaration that, for specified reasons, it cannot present facts essential to justify its opposition.” Plaintiffs have not raised Rule 56(d) or complied with its requirements. B. Facts Given the limited issues raised in the Motion and the more detailed discussion of the Parties’ evidence below (see infra III.B), the Court only briefly summarizes the allegations of the CAC and the evidence submitted by the Parties. Plaintiffs identify the following eight dark chocolate bars as “contain[ing] (or hav[ing] a material risk of containing” Heavy Metals not disclosed on the packaging: • Trader Joe’s 72% Cacao Dark Chocolate Bar • Trader Joe’s The Dark Chocolate Lover’s Chocolate Bar (85% Cacao) • Trader Joe’s Dark Chocolate Bar with Almonds (73% Cacao) • Trader Joe’s Uganda Dark Chocolate Bar (85% Cacao) • Trader Joe’s Mini 70% Cacao Dark Chocolate Bars • Trader Joe’s 73% Cacao Super Dark Dark Chocolate Bar • Trader Joe’s Swiss 72% Cacao Dark Chocolate Bar • Trader Joe’s Pound Plus 72% Cacao Dark Chocolate Bar

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In Re Trader Joe's Company Dark Chocolate Litigation, (S.D. Cal. 2025).

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