McKinney v. Corsair Gaming, Inc.

CourtDistrict Court, N.D. California
DecidedJuly 19, 2022
Docket4:22-cv-00312
StatusUnknown

This text of McKinney v. Corsair Gaming, Inc. (McKinney v. Corsair Gaming, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKinney v. Corsair Gaming, Inc., (N.D. Cal. 2022).

Opinion

1 2 3 4 5 IN THE UNITED STATES DISTRICT COURT 6 FOR THE NORTHERN DISTRICT OF CALIFORNIA 7 8 ANTONIO MCKINNEY, and CLINT Case No. 22-cv-00312-CRB SUNDEEN, each individually and on 9 behalf of all others similarly situated, ORDER GRANTING IN PART AND 10 Plaintiffs, DENYING IN PART DEFENDANT’S MOTION TO DISMISS 11 v.

12 CORSAIR GAMING, INC.,

13 Defendant.

14 Plaintiffs Antonio McKinney and Clint Sundeen allege that Defendant Corsair 15 Gaming, Inc.’s (“Corsair”) packaging of and advertisements for its computer memory 16 cards contain deceptive and misleading statements, in violation of the common law and the 17 consumer protection laws of California and 43 other states. FAC ¶¶ 76-140. Before the 18 Court is Corsair’s Motion to Dismiss the First Amended Complaint (“MTD”) (dkt. 27). 19 The Court GRANTS the motion to dismiss as to (1) claims based on advertisements, (2) 20 omissions claims, (3) equitable claims, (4) negligent misrepresentation claims, and (5) 21 class claims with respect to products they did not purchase. The Court DENIES the 22 motion as to (1) misrepresentation claims based on statements on the packaging, (2) breach 23 of express warranty claims, and (3) class claims brought under the laws of other states. 24 I. BACKGROUND 25 A. The Parties 26 Plaintiffs McKinney and Sundeen are citizens of California who purchased Corsair 27 memory products. FAC ¶¶ 6-7, 56, 59. Plaintiffs bring this putative class action on behalf 1 the United States. FAC ¶ 5. 2 Defendant Corsair is a company headquartered in California and incorporated in 3 Delaware, and it sells “premium, high-speed computer memory.” FAC ¶¶ 1, 9. 4 B. The First Amended Complaint 5 Plaintiffs allege the following. Corsair’s “flagship” products are its high-speed 6 computer memory sticks. FAC ¶ 14. These memory sticks function when they are 7 plugged into the memory slots of a PC. Id. In its advertisements and on its packaging, 8 Corsair lists a speed rating that signifies “how fast the memory can transfer data,” 9 measured in Megahertz (MHz). Id. ¶ 15. The higher the number of MHz, the faster the 10 memory (and the PC) performs. Id. Corsair markets these memory sticks to computer 11 gamers who want to improve game performance, and sells the products in physical stores, 12 through online vendors, and on its website. Id. ¶¶ 13, 19. Both Plaintiffs bought Corsair 13 products that displayed a speed of 3200 MHz on the packaging. FAC ¶¶ 56-59. Plaintiffs 14 also intend to represent a nationwide class of consumers who purchased Corsair memory 15 products with other speeds advertised on the packaging. FAC ¶¶ 29, 62. 16 Nothing on the packaging or inside the packaging qualifies the listed speed. Id. 17 ¶ 18. Corsair advertises the MHz listing on its physical product packaging, and its online 18 advertisements also make claims highlighting the speed and reliability of its memory 19 products. Id. ¶¶ 19, 23. Plaintiffs include sample advertisements for Corsair memory 20 products and allege that Corsair made specific statements in these online ads. Id. ¶¶ 20-23. 21 In their complaint, Plaintiffs seem to state two different theories for their claims: an 22 “out-of-the-box” theory and a “substantial risk” theory. 23 1. Out-of-the-Box Theory 24 Plaintiffs allege that the representations of a specific speed indicate to reasonable 25 consumers that the memory will run at the stated speed out of the box, i.e., after being 26 plugged into a computer without additional action by the consumer. Id. ¶¶ 24-25. This 27 makes sense because, when consumers buy a new computer, the memory comes 1 (which is bought to add to or replace an existing PC’s memory) is advertised to run at 2 “common, standard speeds,” it runs at the stated speed reliably and out of the box. Id. 3 But Plaintiffs allege that Corsair’s 3200 MHz memory sticks do not operate at the 4 advertised speed out of the box. Id. ¶¶ 25, 29-30. They allege that the memory runs at 5 only 2133 MHz—the standard operating speed for PC memory—and it may never achieve 6 the advertised speed depending on the computer platform. Id. ¶¶ 27, 29-32.1 7 2. Substantial Risk Theory 8 Plaintiffs’ second theory is that, when consumers optimize their system to run the 9 memory, there is a substantial risk that the memory still does not work reliably. Corsair 10 advertises that the memory products are “‘optimized’ for overclocking on the latest Intel 11 and AMD motherboards.” Id. ¶ 23. “Overclocking” refers to running computer 12 components (like memory) at higher than standard speeds. Id. Overclocking requires 13 adjusting a computer’s Basic Input/Output System (BIOS) or Unified Extensible Firmware 14 Interface (UEFI) settings, which on many computers are accessible only by “restarting the 15 computer and repeatedly pressing a designated keyboard button . . . during a brief window 16 of time after the computer turns on.” Id. ¶¶ 33, 34. 17 But Plaintiffs allege that the process of “overclocking” is not reliable. Id. ¶¶ 32-33. 18 There is a “substantial risk that the user’s particular combination of other computer 19 components . . . simply cannot support overclocking at the advertised speed.” Id. ¶ 42. A 20 blog post on Corsair’s website authored by a Corsair employee admits that the ability to 21 achieve high speeds through the process of overclocking is a “lottery.” Id. ¶ 32. 22 Additionally, overclocking “poses material risks to the functionality of the computer 23 system, as well as to the memory sticks themselves.” Id. ¶ 39. If the combination of 24 components in a particular PC does not support running at high speeds, “the memory will 25 not run at the advertised speed or it will run unstably (causing software glitches or system 26 1 However, consumers do not necessarily observe that the computer is not running at the 27 high speed promised by Corsair. Compl. ¶¶ 30, 33. For example, Sundeen did not know 1 crashes).” Id. ¶ 42. This is because “memory interacts with other components in complex 2 ways and overclocking is sensitive to this.” Id. 3 McKinney altered his BIOS settings soon after plugging in the Corsair memory 4 stick. Id. ¶ 57. However, it still did not run stably at the advertised speed. Id. When 5 Sundeen discovered that he needed to adjust his BIOS to achieve the advertised speed and 6 attempted to do so, his computer crashed. Id. ¶ 60. 7 3. Plaintiffs’ Claims 8 Plaintiffs allege that they were injured by Corsair’s false statements and material 9 omissions on its packaging and in advertisements. Id. ¶¶ 49-54. They allege that they 10 would not have bought (or would not have paid the same price for) the product had they 11 known that it did not run reliably at the stated speed. Id. ¶¶ 57, 60. Further, Plaintiffs 12 allege that Corsair knows “the truth” that overclocking is unreliable, and “knows that the 13 statements on its packaging and ads are false and misleading to reasonable consumers.” 14 Id. ¶ 55. Plaintiffs also allege that “Corsair intends that consumers will rely on these false 15 and misleading statements when purchasing High-Speed Memory.” Id. 16 Plaintiffs assert claims based on (1) the State Consumer Protection Acts of 44 17 separate states (including California); (2) California’s Unfair Competition Law (“UCL”), 18 Cal. Bus. & Prof. Code § 17200, et seq.; (3) California’s False Advertising Laws (“FAL”), 19 Cal. Bus. & Prof. Code § 17500, et seq.; (4) Consumer Legal Remedies Act (“CLRA”), 20 Cal. Civ. Code § 1750, et seq.; (5) breach of express warranty; and (6) negligent 21 misrepresentation. Id. ¶¶ 76-140. Corsair moves to dismiss and requests judicial notice of 22 six exhibits. See MTD; RJN (dkt.

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McKinney v. Corsair Gaming, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckinney-v-corsair-gaming-inc-cand-2022.