LeGrand v. Abbott Laboratories

District Court, N.D. California·Decided May 16, 2023·No. 3:22-cv-05815·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 CONDALISA LEGRAND, et al., Case No. 22-cv-05815-TSH

8 Plaintiffs, ORDER GRANTING MOTION TO 9 v. DISMISS

10 ABBOTT LABORATORIES, Re: Dkt. No. 40 11 Defendant.

12 13 I. INTRODUCTION 14 Condalisa LeGrand brings this putative class action against Abbott Laboratories, alleging 15 certain statements on the labels of Abbott’s Ensure® nutrition drinks are false and misleading. 16 Abbott now moves for partial dismissal pursuant to Federal Rules of Civil Procedure 12(b)(6), 17 arguing LeGrand lacks standing to assert claims based on one of its label statements, “All-in-One 18 blend to support your health.” ECF No. 40. LeGrand filed an Opposition (ECF No. 44) and 19 Abbott filed a Reply (ECF No. 45). The Court finds this matter suitable for disposition without 20 oral argument and VACATES the May 18, 2023 hearing. See Civ. L.R. 7-1(b). Having 21 considered the parties’ positions, relevant legal authority, and the record in this case, the Court 22 GRANTS Abbott’s motion for the following reasons.1 23 II. BACKGROUND 24 Abbott manufactures, markets, and distributes several different “nutrition” shakes and 25 drinks under its Ensure® brand. First Am. Compl. ¶ 1, ECF No. 37. Among those Ensure 26 products are six at issue in this case: Ensure® Original Nutrition Shake, Ensure® Complete 27 1 Nutrition Shake, Ensure® Compact Therapeutic Nutrition Shake, Ensure® Clear Nutrition Drink, 2 Ensure® Original Nutrition Powder, and Ensure® Enlive Advanced Nutrition Shake. Id. & n.1. 3 Abbott markets the products with health and wellness labeling, such as “#1 Doctor Recommended 4 Brand” and “Complete, Balanced Nutrition for everyday health.” Id. ¶¶ 12-14. 5 LeGrand is a California resident who purchased the Ensure Original Nutrition Shake. Id. 6 ¶¶ 8, 106. In purchasing the product, LeGrand was exposed to and relied on Abbott’s label 7 representations, such as that the products were “Doctor Recommended” and “nutrition shake[s].” 8 Id. ¶ 107. There is scientific evidence demonstrating that consuming sugar-sweetened beverages 9 harms, rather than supports, overall health. Id. ¶ 2. Abbott adds up to 22 grams of sugar per 10 serving to the Ensure Nutrition Drinks. Id. As a result of this sugar content and scientific 11 evidence, LeGrand alleges the labeling on the products advertising them as balanced, nutritious, 12 and healthy is false and misleading. Id. 13 On October 6, 2022, LeGrand filed the initial complaint in this matter, along with a co- 14 plaintiff, Larissa Bates, who is a resident of New York and purchased Ensure Complete Nutrition 15 Shakes there. Compl. ¶¶ 9, 108, ECF No. 1. LeGrand and Bates sought to bring a class action on 16 behalf of themselves and other consumers who bought the products, defining members of a 17 nationwide class, as well as California and New York subclasses, as “all persons in the United 18 States, and subclasses of all persons in California and in New York, who, at any time from four 19 years preceding the date of the filing of this Complaint to the time a class is notified (the ‘Class 20 Period’), purchased, for person or household use, and not for resale or distribution, any of the 21 Ensure Nutrition Drinks (the ‘Class’).” Id. ¶ 124. Plaintiffs brought the following causes of 22 action: (1) violation of California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code §§ 23 17200 et seq.; (2) violation of California’s False Advertising Law (“FAL”), id. §§ 17500 et seq.; 24 (3) violation of California’s Consumer Legal Remedies Act (“CLRA”), Cal. Civ. Code §§ 1750 et 25 seq.; (4) Breach of Express Warranties, Cal. Com. Code § 2313(1); (5) Breach of Implied 26 Warranty of Merchantability, id. § 2314; (6) violation of N.Y. Gen. Bus. Law. § 349; (7) violation 27 of N.Y. Gen. Bus. Law. § 350; (8) Unjust Enrichment; (9) Negligent Misrepresentation; and (10) 1 On December 12, 2022, Abbott moved to dismiss pursuant to Rules 12(b)(2) and 12(b)(6), 2 arguing the Court lacked jurisdiction as to New York resident Bates’s claims and that Plaintiffs’ 3 claims failed under several grounds, including statutory standing and preemption. ECF No. 18. 4 On February 22, 2023, the Court granted in part and denied in part Abbott’s motion. ECF No. 33; 5 LeGrand v. Abbott Lab’ys, __ F. Supp. 3d __, 2023 WL 1819159, at *5-6 (N.D. Cal. Feb. 8, 6 2023). As to Bates’s claims, the Court granted Abbott’s motion, finding it lacks personal 7 jurisdiction but granting leave to amend should Bates have claims pursuant to federal questions. 8 As to LeGrand, the Court found she has standing under the UCL, FAL and CLRA to 9 challenge advertising for products she did not purchase. LeGrand, 2023 WL 1819159, at *5. The 10 Court noted LeGrand may have standing to assert claims for unnamed class members based on 11 products she did not purchase “‘so long as the products and alleged misrepresentations are 12 substantially similar.’” Id. (quoting Miller v. Ghirardelli Chocolate Co., 912 F. Supp. 2d 861, 868 13 (N.D. Cal. 2012)). In her original complaint, LeGrand alleged she relied upon the statements 14 “nutrition shake,” “Complete, Balanced Nutrition,” “Complete, Balanced Nutrition for everyday 15 health,” and “Doctor Recommended” in purchasing the Ensure Original Nutrition Shake. Compl. 16 ¶ 107. The Court found that, while these advertising statements vary some from statements on the 17 other products, the products were sufficiently similar because “[a]ll products prominently display 18 that they are ‘Doctor Recommended’ and emphasize ‘nutrition,’ . . . [m]ost of the packaging 19 includes language that the nutrition is ‘complete’ and ‘balanced,’ . . . the basis for alleging the 20 packaging to be misleading is largely the same[,] . . . [and] [a]ll the relevant products contain 21 added sugar in harmful amounts, the key ingredient underpinning LeGrand’s false advertising 22 claims.” LeGrand, 2023 WL 1819159, at *5. 23 Abbott also argued that many of its statements constitute nutrient content statements under 24 federal law and thus the state consumer protection claims based on those statements were 25 preempted. The Court noted the Food and Drug Administration (“FDA”) has declined to prohibit 26 food labeling which advertises a product as “healthy” when it contains high amounts of sugar. 27 LeGrand, 2023 WL 1819159, at *6 (citations omitted). Thus, as state law restrictions must be 1 LeGrand’s state law claims would be preempted to the extent she argued that nutrient content 2 claims on Ensure labels are misleading because they indicate the products are healthy despite 3 containing high levels of sugar, but they would not be preempted where they are based on food 4 labeling statements which are not nutrient content claims. Id. (citations omitted). The Court 5 found that “advanced nutrition shake,” “therapeutic nutrition shake,” “nutrition drink,” and 6 “nutrition powder” on the labels for Ensure Enlive Advanced Nutrition Shake, Ensure Compact 7 Therapeutic Nutrition Shake, Ensure Clear Nutrition Drink, and Ensure Original Nutrition Powder 8 are not nutrient content claims as they “are not placed in close enough proximity to the underlying 9 nutrient claims to be themselves considered nutrient content.” Id. at *7 (citation omitted). The 10 Court also found that “Immune * Muscle * Heart * Digestion * Bone” on the front of the 11 packaging for Ensure Complete Nutrition Shake stands separate from other references to nutrient 12 content on the packaging and therefore is not an implied nutrient content claim. Id.

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