Lederman v. The Hershey Company

CourtDistrict Court, N.D. Illinois
DecidedAugust 19, 2022
Docket1:21-cv-04528
StatusUnknown

This text of Lederman v. The Hershey Company (Lederman v. The Hershey Company) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lederman v. The Hershey Company, (N.D. Ill. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION SANDRA LEDERMAN, individually ) and on behalf of all others similarly ) situated, ) Case No. 21-cv-4528 Plaintiff, ) ) Judge Robert M. Dow, Jr. Vv. ) ) THE HERSHEY COMPANY, ) ) Defendant. MEMORANDUM OPINION AND ORDER Plaintiff Sandra Lederman initiated this putative class action against Defendant Hershey Company on August 24, 2021, after its “Hot Fudge Topping” (the “Product’) failed to meet her expectations. Plaintiff believes that the Product’s label is misleading because it is not real fudge; rather, in her view, it is simply “chocolate sauce.” Plaintiff alleges the Product “lacks ingredients essential to hot fudge,” and thus is deceptively labeled. She asserts that this misnomer gives rise to several claims: violation of the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”); violation of consumer-protection laws in Iowa and Arkansas; state-law claims for breach of express and implied warranties and under the Magnuson Moss Warranty Act (“MMWA”); negligent misrepresentation; fraud; and unjust enrichment. Plaintiff asserts federal court jurisdiction on the Class Action Fairness Act of 2005 (“CAFA”), 28 U.S.C. § 1332(d)(2). Before the Court is Defendant’s motion to dismiss [15] pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. For the reasons stated below, Defendant’s motion [15] is granted. Plaintiff is given leave to replead no later than September 19, 2022. If Plaintiff does not file an amended complaint by that date (or any extension granted by the Court), the case will be dismissed with prejudice and a final judgment will be entered. If Plaintiff files an amended

complaint, Defendant’s responsive pleading will be due by October 17, 2022, and the Court will set a status hearing shortly thereafter. 1. Background! Defendant manufactures, labels, markets, and sells “Hot Fudge Topping” under the Hershey’s brand. [1 at § 1.] As shown in the image below, the product is sold in a jar with a front label that says, “Hershey’s Hot Fudge Topping,” “120 calories per 2 TBSP,” and indicates that the jar has a net weight of 12.8 oz.:

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[/d.] The back of the label lists the ingredients:

' For purposes of Defendant’s motion to dismiss, the Court accepts as true all well-pled allegations set forth in the complaint [1] and draws all reasonable inference in Plaintiff's favor. Calderon-Ramirez v. McCament, 877 F.3d 272, 275 (7th Cir. 2017).

PC aU Ta DAM CMa Usyoa esprit mesl i /ted RAB) al blebs) MRO UU mh altel Ua OOO RS RU Sateen RUKIA Ro nL VACA STOUT Syed □□ CD RCAC Rant □□□ TY

[/d. at | 43.] As the label indicates, the product contains several dairy ingredients, including “sweetened condensed skim milk (skim milk; sugar),” skim milk, and “whey (milk).” [/d. at ] 44.] Plaintiff alleges that she purchased the Product on one or more occasions between May and June 2021. [1 at § 83.] She claims that she bought Hershey’s Hot Fudge Topping because “she expected it would contain ingredients essential to (hot) fudge,” but instead had purchased a product that “get[s] its consistency and texture from vegetable fats and use[s] dairy ingredients with their valuable fat content removed.” [/d. at ff 84-87.] Because the topping “lacks ingredients essential to hot fudge — cream and whole milk — and substitutes lower quality and lower priced vegetable oil, skim milk, and whey,” the resulting confection “provides less satiety, a waxy and oily mouthfeel, and leaves an after taste.” [/d. at §§] 43, 51.] Plaintiff believes that these “misleading representations and omissions” allow Defendant to sell the Product at “a higher price than it would otherwise be sold for,” and as a result, she suffered damage when she paid more for the Product than its worth. [/d. at §¥] 65-66.] Il Legal Standard To survive a Rule 12(b)(6) motion to dismiss for failure to state a claim upon which relief can be granted, the complaint first must comply with Rule 8(a) by providing “a short and plain statement of the claim showing that the pleader is entitled to relief,” Fed. R. Civ. P. 8(a)(2), such that the defendant is given “fair notice of what the * * * claim is and the grounds upon which it

rests.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47 (1957)) (alteration in original). Second, the factual allegations in the complaint must be sufficient to raise the possibility of relief above the “speculative level.” E.E.O.C. v. Concentra Health Servs., Inc., 496 F.3d 773, 776 (7th Cir. 2007) (quoting Twombly, 550 U.S. at 555). “A pleading that offers ‘labels and conclusions’ or a ‘formulaic recitation of the elements of a cause of action will not do.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 555). Dismissal for failure to state a clatm under Rule 12(b)(6) is proper “when the allegations in a complaint, however true, could not raise a claim of entitlement to relief.” Twombly, 550 U.S. at 558. In reviewing a motion to dismiss pursuant to Rule 12(b)(6), the Court accepts as true all of Plaintiff's well-pleaded factual allegations and draws all reasonable inferences in Plaintiffs favor. Killingsworth v. HSBC Bank Nevada, N.A., 507 F.3d 614, 618 (7th Cir. 2007). However, “[t]o survive a motion to dismiss, the well-pleaded facts of the complaint must allow the court to infer more than the mere possibility of misconduct.” Langworthy v. Honeywell Life & Acc. Ins. Plan, 2009 WL 3464131, at *2 (N.D. Ill. Oct. 22, 2009) (citing McCauley v. City of Chicago, 671 F.3d 611, 616 (7th Cir. 2011)). Additionally, the Court “need not accept as true legal conclusions, or threadbare recitals of the elements of a cause of action, supported by mere conclusory statements.” Brooks v. Ross, 578 F.3d 574, 581 (7th Cir. 2009) (quoting Jgbal, 556 U.S. at 678). Evaluating whether a “claim 1s sufficiently plausible to survive a motion to dismiss is ‘a context- specific task that requires the reviewing court to draw on its judicial experience and common sense.”” /d. (quoting McCauley, 671 F.3d at 616). Claims alleging fraud, including those asserted under the ICFA, are subject to the heightened pleading standard of Federal Rule of Civil Procedure 9(b), see Haywood v. Massage

Envy Franchising, LLC, 887 F.3d 329, 333 (7th Cir. 2018), which means that Plaintiff must “state with particularity the circumstances constituting fraud.” Fed. R. Civ. P. 9(b).

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Lederman v. The Hershey Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lederman-v-the-hershey-company-ilnd-2022.