Jennifer Beardsall v. CVS Pharmacy, Incorporated

CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 24, 2020
Docket19-1850
StatusPublished

This text of Jennifer Beardsall v. CVS Pharmacy, Incorporated (Jennifer Beardsall v. CVS Pharmacy, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jennifer Beardsall v. CVS Pharmacy, Incorporated, (7th Cir. 2020).

Opinion

In the

United States Court of Appeals For the Seventh Circuit ____________________ No. 19‐1850 JENNIFER BEARDSALL, et al., Plaintiffs‐Appellants, v.

CVS PHARMACY, INC., et al., Defendants‐Appellees. ____________________

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 1:16‐cv‐06103 — Joan H. Lefkow, Judge. ____________________

ARGUED JANUARY 15, 2020 — DECIDED MARCH 24, 2020 ____________________

Before BAUER, EASTERBROOK, and HAMILTON, Circuit Judges. HAMILTON, Circuit Judge. Plaintiffs brought state consumer deception claims against defendant Fruit of the Earth and its retailer clients. They alleged that defendants’ aloe vera prod‐ ucts did not contain any aloe vera and lacked acemannan, a compound that plaintiffs say is responsible for the plant’s 2 No. 19‐1850

therapeutic qualities. But uncontested facts drawn from dis‐ covery showed these allegations to be false: the products were made from aloe vera and contained at least some acemannan. To stave off summary judgment, plaintiffs changed their theory, claiming that the products were degraded and did not contain enough acemannan. Plaintiffs said that it was therefore misleading to call the products aloe vera gel, to represent them as “100% Pure Aloe Vera Gel,” and to market them as providing the therapeutic effects associated with aloe vera. Plaintiffs have not, however, presented evidence that some concentration of acemannan is necessary to call a product aloe or to produce a therapeutic effect. Nor have they offered evi‐ dence that consumers care at all about acemannan concentra‐ tion. Whatever theoretical merit these claims might have had on a different record, this record simply does not contain evi‐ dence that would allow a reasonable jury to find in favor of plaintiffs. With this dearth of evidence, the district court granted summary judgment in favor of defendants. We af‐ firm. I. Undisputed Facts and Procedural Background A. Facts Defendant Fruit of the Earth, Inc. manufactures aloe vera gel. It both sells the product under its own brand and pro‐ duces private‐label versions for defendants CVS, Walgreens, Walmart, and Target. At issue in this appeal are the Fruit of the Earth and Walgreens products. The two aloe vera gels are indisputably made from aloe vera plants, though the raw aloe vera harvested by Fruit of the Earth’s suppliers is processed both before and after being delivered to Fruit of the Earth. The suppliers harvest, fillet, No. 19‐1850 3

and depulp the aloe vera leaves. The resulting aloe is then pasteurized, filtered with active charcoal to remove color and impurities, treated with preservatives, and dehydrated for shipping. Fruit of the Earth then reconstitutes the dehydrated aloe and adds stabilizers, thickeners, and preservatives to make the final gel product shelf‐stable. The parties agree that the products are 98% aloe gel (the reconstituted aloe vera sol‐ ids) and 2% other ingredients (stabilizers and preservatives). The only relevant difference between the products is the labeling. Both labels describe the respective products as aloe vera gel. Both also indicate that the products can be used to treat dry, irritated, or sunburned skin. The Fruit of the Earth label calls the product “Aloe Vera 100% Gel” and “100% Pure Aloe Vera Gel.” An asterisk after “100% Gel” leads to infor‐ mation on the back of the label: “Plus stabilizers and preserv‐ atives to insure [sic] potency and efficacy.” Each label contains an ingredient list showing that the product contains aloe juice and various other substances. The two labels are reproduced in the attached appendix.1 B. Procedural History Plaintiffs filed state‐law consumer deception claims against Fruit of the Earth, CVS, Walgreens, Walmart, and Tar‐ get alleging that the labeling of the aloe vera gels—manufac‐

1 Two distinct Fruit of the Earth labels were presented to the district court: one contained an additional asterisk after “100% Pure Aloe Vera Gel” leading to the same disclaimer as the front. On appeal, plaintiffs have included in their brief a version of the bottle without an asterisk (repro‐ duced in the Appendix). Defendants have included in their brief a version of the bottle with an asterisk. Our decision does not depend on this differ‐ ence. 4 No. 19‐1850

tured by Fruit of the Earth and sold under all of the defend‐ ants’ brands—was misleading. The district court adopted a bifurcated approach to discovery, allowing fact discovery for the Fruit of the Earth and Walgreens products to proceed and staying litigation over the others. The court then set a dead‐ line for class certification, Daubert motions, and dispositive motions. After discovery was complete, plaintiffs moved for class certification. Fruit of the Earth and Walgreens moved to ex‐ clude the testimony of plaintiffs’ experts and moved for sum‐ mary judgment. The district court denied defendants’ motion to exclude the testimony of Dr. Edwards, plaintiffs’ expert whose testimony focused on the amount of acemannan in de‐ fendants’ products. The court granted summary judgment in favor of Fruit of the Earth and Walgreens, finding no evidence that the aloe gel labels would be likely to deceive a reasonable consumer. Plaintiffs’ motion for class certification and de‐ fendants’ motion to exclude plaintiffs’ damages expert were denied as moot. The parties then stipulated to the entry of a final judgment in favor of all defendants, and plaintiffs have appealed. II. Analysis We review a grant of summary judgment de novo, taking the facts in the light most favorable to the non‐moving parties. Suchanek v. Sturm Foods, Inc., 764 F.3d 750, 761 (7th Cir. 2014). Summary judgment is appropriate “if the movant shows that there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a); see also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251–52 (1986) (question on summary judgment is “whether the evi‐ No. 19‐1850 5

dence presents a sufficient disagreement to require submis‐ sion to a jury”). Though the movant bears the burden of show‐ ing that summary judgment is appropriate, the non‐moving party “may not rest upon mere allegations in the pleadings or upon conclusory statements in affidavits; it must go beyond the pleadings and support its contentions with proper docu‐ mentary evidence.” Warsco v. Preferred Tech. Grp., 258 F.3d 557, 563 (7th Cir. 2001); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322–23 (1986). A. Legal Standard Plaintiffs have brought claims under fourteen consumer protection statutes spanning twelve different states.2 These

2 Count I: California Consumer Legal Remedies Act, Cal. Civ. Code § 1750 et seq. (against Fruit of the Earth, CVS, Target, and Walgreens); Count II: California False Advertising Law, Cal. Bus. & Prof. Code § 17500 et seq. (against Fruit of the Earth, CVS, Target, and Walgreens); Count III: California Unfair Competition Law, Cal. Bus. & Prof. Code § 17200 et seq.

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