Leonard v. CVS Pharmacy, Inc.

District Court, N.D. California·Decided September 29, 2025·No. 5:24-cv-06280·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 8 CHERI LEONARD, Case No. 5:24-cv-06280-EJD

9 Plaintiff, ORDER GRANTING MOTION TO DISMISS WITH LEAVE TO AMEND 10 v.

11 CVS PHARMACY, INC., et al., Re: Dkt. No. 47 Defendants. 12

13 Plaintiff Cheri Leonard (“Plaintiff”), on behalf of herself and a class of similarly situated 14 individuals, brings various California consumer protection claims against Defendants CVS 15 Pharmacy, Inc. (“CVS”), Amneal Pharmaceuticals of New York, LLC, and Amneal 16 Pharmaceuticals LLC (collectively, “Amneal”) (all together, “Defendants”) arising from the 17 alleged presence of benzene in Defendants’ products. First. Am. Compl. (“FAC”), ECF No. 33. 18 Before the Court is Defendants’ motion to dismiss pursuant to Federal Rules of Civil Procedure 19 12(b)(1) and 12(b)(6). Mot., ECF No. 47. This motion is fully briefed. Opp’n, ECF No. 59; 20 Reply, ECF No. 60. 21 After careful review of the relevant documents, the Court finds this motion suitable for 22 decision without oral argument pursuant to Local Rule 7-1(b). For the reasons explained below, 23 the Court GRANTS Defendants’ motion to dismiss with leave to amend. 24 I. BACKGROUND 25 Plaintiff alleges that Amneal manufactured, and CVS sold, guaifenesin-containing 26 27 1 medications (“Products”)1 that included a carbomer manufactured with benzene. FAC ¶¶ 1, 2. 2 The Products are marketed as a generic formulation of the brand-name Mucinex. Id. ¶ 2. 3 The Products and Mucinex both list carbomer as an inactive ingredient. Id. ¶ 4. Carbomer is 4 widely used in drugs as a gelling or binding agent and is sometimes manufactured using benzene. 5 Id. ¶ 6, 48. Benzene is a known carcinogenic that has been linked to cancer and other medical 6 conditions in studies cited by Plaintiff. Id. ¶¶ 5–8. Although some carbomers—such as those used 7 in Mucinex—are not manufactured using benzenes, it is generally cheaper to manufacture 8 carbomers with benzene. Id. ¶ 6. Plaintiff alleges that Amneal used a carbomer manufactured 9 with benzene in the Products to save costs. 10 The Products are considered time-released over-the-counter (“OTC”) drugs, which require 11 FDA approval. Mot. 3. To obtain such approval, Amneal submitted an Abbreviated New Drug 12 Application (“ANDA”) to the FDA. Req. for J. Notice (“RJN”), Exs. 2, 3, ECF Nos. 49, 61.2 13 Under FDA regulations, ANDAs must disclose each component of the drug and its specifications, 14 including the identification and characterization of inactive ingredients, along with data 15 demonstrating that the ingredients do not affect the drug’s safety or efficacy. 21 C.F.R. §§ 16 314.50(d)(1)(ii)(a), 314.94(a)(9)(i) (incorporating § 314.50(d)(1) for ANDAs), 3.14.94(a)(9)(ii). 17 The FDA reviewed and approved Amneal’s guaifenesin ANDAs in 2018. RJN, Exs. 2, 3. By 18 approving the ANDAs, the FDA authorized the Products’ labels and the use of the carbomer listed 19 as an inactive ingredient, which is the carbomer manufactured with benzene. Id. 20

21 1 Plaintiff lists five Products in the FAC: (1) CVS-branded Maximum Strength Mucus Extended 22 Release, Guaifenesin Extended-Release Tablets, 1200 mg; (2) CVS-branded Mucus Extended Release, Guaifenesin Extended-Release Tablets, 600 mg; (3) CVS Health 12HR Maximum 23 Strength Mucus DM Extended Release Tablets, 1200mg/60mg; (4) CVS Health 12HR Mucus DM Extended Release Cough Tablets, 600mg/30mg; and (5) CVS Health 12HR Maximum Strength 24 Cough and Congestion Relief Extended Release Tablets. FAC ¶ 2. 2 Pursuant to Federal Rule of Evidence 201, the Court GRANTS Defendant’s unopposed request 25 for judicial notice. Req. for J. Notice (“RJN”), ECF Nos. 49, 61. The Court takes judicial notice of documents including: FDA National Drug Code database file; FDA approval pages for 26 Amneal’s ANDAs; National Library of Medicine (“NIH”) DailyMed webpages for the Products; FDA guidance and articles; and USP updates and monographs. Id. The Court finds these 27 documents are either incorporated to or relied upon in the complaint, or capable of being accurately and readily determined from sources whose accuracy cannot be questioned. 1 Specifications for inactive ingredients like carbomers are established in monographs 2 published by the United States Pharmacopeia (“USP”). FAC ¶ 39 n.17–18. The monographs for 3 carbomers have recently undergone changes. In December 2023, the FDA issued guidance 4 concerning five USP carbomer monographs that allowed benzene levels of “up to 5,000ppm.” 5 RJN, Ex. 6 at 3, Ex. 7. At the FDA’s request, USP issued a Notice of Intent to omit these 6 monographs by August 1, 2025. RJN, Ex. 6 at 1 n.3. USP subsequently changed this target date 7 to August 1, 2026. RJN, Ex. 8. Manufacturers using the affected carbomers will be required to 8 reformulate their products once the monographs are removed in August 2026. Id. at 4. The FDA 9 guidance also recommends that manufacturers test their products for benzene contamination and 10 refrain from releasing any batch containing benzene levels exceeding 2 ppm. Id. at 3–4. In 11 response, Amneal publicly announced its intent to submit reformulated versions of the Products 12 for FDA approval. RJN, Ex. 6 at 1 n.3. 13 Plaintiff alleges that she purchased CVS-branded Maximum Strength Mucus Extended 14 Release, Guaifenesin Extended-Release Tablets, 1200 mg from a CVS retail location in Felton, 15 California in July 2024. FAC ¶ 14. This product, along with the other Products listed in the FAC, 16 are allegedly manufactured by Defendant Amneal and contain benzene. Id. ¶¶ 1, 2. Plaintiff filed 17 this case on September 5, 2024, bringing five claims arising out of the presence of benzene in the 18 Products: (1) breach of implied warranty of merchantability, (2) unjust enrichment, (3) fraud, (4) 19 violation of California’s consumer legal remedies act, Cal. Civ. Code § 1750, et seq., and (5) 20 violation of California’s unfair competition law, Cal. Bus. & Prof. Code § 17200, et seq. Compl., 21 ECF No. 1. Plaintiff claims that had Defendants disclosed the presence of benzene, she would not 22 have purchased the Product or would have paid less for it, and she seeks compensatory and 23 punitive damages, restitution, and attorneys’ fees and costs. See FAC. 24 II. LEGAL STANDARD 25 A. Rule 12(b)(1) 26 A district court must dismiss an action if it lacks jurisdiction over the subject matter of the 27 suit. Fed. R. Civ. Pro. 12(b)(1). “The plaintiff, as the party invoking federal jurisdiction, bears the 1 burden of establishing” the elements of standing: injury in fact, causation, and redressability. 2 Spokeo, Inc. v. Robins, 578 U.S. 330, 338 (2016) as revised (May 24, 2016). Once a defendant 3 moves to dismiss for lack of subject matter jurisdiction, the plaintiff has the burden of establishing 4 the court’s jurisdiction. Chandler v. State Farm Mut. Auto. Ins. Co., 598 F.3d 1115, 1122 (9th Cir. 5 2010). 6 B. Rule 12(b)(6) 7 “To survive a motion to dismiss, a complaint must contain sufficient factual matter, 8 accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 9 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v.

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