Leonard v. Mondelez Global LLC

CourtDistrict Court, S.D. New York
DecidedMarch 8, 2023
Docket1:21-cv-10102
StatusUnknown

This text of Leonard v. Mondelez Global LLC (Leonard v. Mondelez Global LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leonard v. Mondelez Global LLC, (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------X CHRISTOPHER LEONARD, individually and on : behalf of all others similarly situated, : : Plaintiff, : 21-cv-10102-PAC : - against - : : OPINION & ORDER : MONDELĒZ GLOBAL LLC, : : Defendant. : ---------------------------------------------------------------X Plaintiff Christopher Leonard (“Plaintiff”) brings this putative class action against Mondelēz Global LLC (“Defendant”). Defendant manufactures and sells Fudge Covered Mint Crème OREO cookies (“the Product”), which consist of chocolate sandwich cookies containing mint crème covered in a chocolate-flavored coating. Plaintiff claims, in large part, that the Product’s label misleads consumers because it purports to contain “fudge” when, under Plaintiff’s definition of fudge, it does not. Plaintiff proposes a New York class and a multi-state class based on all persons in North Dakota, Kansas, and Wyoming “who purchased the Product during the statute of limitations for each cause of action alleged” (the “Consumer Fraud Multi-State Class”). Plaintiff seeks money damages for (1) violations of New York General Business Law (“NY GBL”) §§ 349 and 350; (2) violations of the “Consumer Fraud Acts of the States in the Consumer Fraud Multi-State Class”; (3) breach of express warranty; (4) breach of implied warranty of merchantability; (5) fraud; (6) and unjust enrichment.1 Defendant moves to dismiss the Complaint

1 The Complaint also alleges violations of the Magnuson Moss Warranty Act, 15 U.S.C. § 2301, et seq., and negligent misrepresentation and seeks injunctive relief. Plaintiff has subsequently withdrawn both claims and his request for injunctive relief. See Pl.’s Letter Mot. at 3 n. 1, ECF No. 12; Pl.’s Opp’n at 1 n. 1, ECF No. 15. in its entirety under Federal Rule of Civil Procedure 12(b)(6). For the reasons stated below, Defendant’s motion is GRANTED and the Complaint is dismissed in its entirety with prejudice. BACKGROUND The following facts are taken from the Complaint and, for the purposes of this motion, are accepted as true and construed in the light most favorable to the Plaintiff. See Lively v. WAFRA Inv. Advisory Grp., Inc., 6 F Ath 293, 299 n.1 (2d Cir. 2021). Defendant is a Delaware limited liability company with a principal place of business in East Hanover, New Jersey. Compl § 50, ECF No. 1. Defendant’s “forerunner” was “the National Biscuit Company (‘Nabisco’), formed in 1898 from a merger of over 100 bakeries.” Jd. 4 59. “Nabisco introduced numerous staples of American pantries, including Oreos” and, together with its successor, Defendant, “emphasizes its commitment to quality products, labeled honestly.” Id. §§ 61, 63. Defendant currently manufactures, labels, markets, and sells chocolate sandwich cookies containing mint créme identified as “Fudge Covered” under the OREO brand. /d. § 1. The Product is labeled as follows: i □□□ a Ge) Ne MET SAS aye ; □□ Sa RAN: rsd Poe eee, a i oe Fr ee oe en a. 5 a ra 4 i ae Mn Se a / pe STN RT fe Be ag i Fi Ee | i dala Veg |

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Id. Fudge is a “type of sugar candy that is made by mixing sugar, butter and milk.” Id. § 2. While fudge can have any flavor, “milkfat is the central component.” Jd. § 3. The quality of the fudge “depends on the amount and type of fat-contributing ingredients.” Jd. § 17. The fat- contributing ingredients typically come from diary and are based on milkfat—mainly butter—or vegetable oils like palm and palm kernel oil. Id. 4 19-24. “Dairy ingredients impart a creamy, rich taste and texture” to fudge, id. 21, while vegetable oils “provide less satiety, a waxy and oily mouthfeel, and leave an aftertaste.” Id. § 26. The Product’s “fudge” is made of palm and palm kernel oil, nonfat milk, cocoa, and natural flavor, as determined by comparing the Product’s ingredients against non-coated regular OREOS. Id. § 32-33. Two ingredients lists for the Product are pictured below:

□□ ee Ne □□ eras MOSM a ROLE NGA □□□ AT SOO TS TMS Pant eee MANTRA oO) V2 8) ONTO) ROTO Le ss) DT Vd NCO) Tacs □□ Pa OOOO) □□□ Oks) sa O31) SU ame CRO □□ Oe ans) ga AV □□□ sl) Qe ol || oy dd tl OTR OTA See (St 0) on (See) ca □□□ OU NOT

INGREDIENTS: SUGAR, PALM AND PALM KERNEL OIL, UNBLEACHED ENRICHED FLOUR (WHEAT FLOUR, NIACIN, REDUCED IRON, THIAMINE MONONITRATE {VITAMIN B1}, RIBOFLAVIN {VITAMIN B2}, FOLIC ACID), CANOLA OIL, COCOA (PROCESSED WITH ALKALI), NONFAT MILK, COCOA, HIGH FRUCTOSE CORN SYRUP, LEAVENING (BAKING SODA AND/OR CALCIUM PHOSPHATE), SOY LECITHIN, SALT, PEPPERMINT OIL, CHOCOLATE, YELLOW 5 LAKE, BLUE 1 LAKE, ARTIFICIAL FLAVOR, NATURAL FLAVOR. Id. ¶ 31 (emphasis in original). According to the Plaintiff, consumers expect that the label “Fudge Covered” and the picture of the cookie “coated with what appears to be fudge” means the Product contains fudge “made of dairy ingredients containing milk fat.” Id. ¶ 34. The Product, however, lacks these dairy ingredients because it contains “nonfat milk and [] palm oils for its fat content.” Id. ¶ 35. The Product’s packaging is therefore misleading because it creates “an erroneous impression that essential fudge ingredients are present.” “By labeling the Product in this manner, Defendant gained an advantage against other companies, and against consumers who sought to purchase a product that contained fudge ingredients such as dairy ingredients with milkfat.” Id. ¶ 42. Plaintiff purchased the Product for “no less than approximately $3.99 for 9.9 oz. (280 g.), a higher price than it would otherwise be sold for, absent the misleading representations and omissions.” Id. ¶ 46. Had Plaintiff and the proposed class members “known the truth, they would not have bought the Product or would have paid less for it.” Id. ¶ 45. DISCUSSION I. Legal Standard “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). The

plaintiff’s factual allegations must “raise a right to relief above the speculative level” to cross “the line from conceivable to plausible.” Twombly, 550 U.S. at 555, 570. “A claim has facial plausibility when the pleaded factual content allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 663. Although the Court must accept the plaintiff’s factual allegations as true, it is “not bound to accept as true a legal conclusion couched as a factual allegation.” Papasan v. Allain, 478 U.S. 265, 286 (1986). In deciding a motion to dismiss, the court may consider both “the allegations on the face of the complaint” and “[d]ocuments that are attached to the complaint or incorporated in it by reference.” Roth v. Jennings, 489 F.3d 499, 509 (2d Cir. 2007).

II. Count I: NY GBL Sections 349 and 350 Article 22-A of NY GBL protects consumers from deceptive acts and practices. While Section 349 involves unlawful deceptive acts and practices and Section 350, unlawful false advertising, the standard for recovery under both is “identical.” Denenberg v. Rosen, 897 N.Y.S.2d 391, 395 (N.Y. App. Div. 1st Dep’t 2010) (quoting Goshen v. Mut. Life Ins. Co. of New York, 774 N.E.2d 1190 (N.Y. 2002)).

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Leonard v. Mondelez Global LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leonard-v-mondelez-global-llc-nysd-2023.