McKinney v. Corsair Gaming, Inc.

District Court, N.D. California·Decided December 16, 2022·No. 4:22-cv-00312·Unknown

Opinion

ANTONIO MCKINNEY, et al., Case No. 22-cv-00312-CRB

Plaintiffs,

ORDER GRANTING IN PART AND v. DENYING IN PART MOTION TO DISMISS Defendant.

Plaintiffs Antonio McKinney and Clint Sundeen allege that Defendant Corsair Gaming, Inc.’s (“Corsair”) packaging of and advertisements for its computer memory products contain deceptive and misleading statements, in violation of the common law and the consumer protection laws of California and 43 other states. See SAC (dkt. 39). In its prior order on Corsair’s first motion to dismiss and motion to strike, the Court granted Corsair’s motion as to (1) claims based on advertisements; (2) omissions claims; (3) equitable claims; (4) negligent misrepresentation claims; and (5) class claims with respect to products Plaintiffs did not purchase. See McKinney v. Corsair Gaming, Inc., No. 22-CV-00312-CRB, 2022 WL 2820097, at *1 (N.D. Cal. July 19, 2022). The Court denied Corsair’s motion as to (1) misrepresentation claims based on statements on the packaging of Corsair’s products; (2) breach of warranty claims; and (3) class claims brought under the laws of other states. Id. The Court allowed Plaintiffs to amend on all claims except the negligent misrepresentation claim. Id. at *14. Plaintiffs did so, and Corsair renews its motion to dismiss and motion to strike, this time only urging dismissal of Plaintiffs’ claims regarding (1) omissions; (2) products breach of warranty claims. See Mot. (dkt. 44) at 2–4. After hearing argument on December 9, 2022, the Court GRANTS Corsair’s motion to dismiss as to omission claims, DDR-5 products that Plaintiffs did not purchase, national and multistate class claims, and breach of express warranty claims. The Court DENIES Corsair’s motion as to DDR-4 products that Plaintiffs did not purchase. Plaintiffs are granted leave to amend to plead that their express warranty claims are brought under California law. Leave to amend is denied as to all other dismissed claims. Plaintiffs’ factual allegations and legal theories remain largely as discussed in the Court’s prior order. See McKinney, 2022 WL 2820097, at *1–3. In their second amended complaint, Plaintiffs allege the following additional facts: First, Plaintiffs allege which of “Corsair’s deceptively labeled memory” products are at issue in this case, apart from the specific products Plaintiffs bought. See SAC ¶ 15; McKinney, 2022 WL 2820097, *13 (striking class claims that refer to products Plaintiffs did not buy because they “vaguely allege[d] that the misrepresentations on different memory products are similar, they d[id] not do so with enough specificity”). Plaintiffs now specify that the following memory sticks are at issue: • “any non-SODIMM, DDR-4 memory in the “Vengeance” and “Dominator” lines that includes a “MHz” speed above 2133 MHz in the product name.” SAC ¶ 15(a); id. Ex. 1. • “any non-SODIMM, DDR-5 memory in the “Vengeance” and “Dominator” lines that includes a “MHz” speed above 4800 MHz in the product name.” SAC ¶ 15(b); id. Ex. 2. They allege that each of these products includes “an unqualified statement identifying a specific ‘MHz’ speed of the memory on the front of the packaging,” and that “[e]ach model of Corsair’s High-Speed Memory does not operate at the advertised speed.” Id. ¶¶ 20; 41. Corsair’s own website and authorized resellers, where the advertised MHz speed is stated on the product page. Id. ¶¶ 21–29. Plaintiffs allege that Corsair “expressly authorizes . . . resellers to resell its products . . . and expressly identifies them as authorized resellers and announces this fact to consumers.” Id. ¶ 31. Under Federal Rule of Civil Procedure 12(b)(6), the Court may dismiss a complaint for failure to state a claim upon which relief may be granted. Dismissal may be based on either “the lack of a cognizable legal theory or the absence of sufficient facts alleged under a cognizable legal theory.” Godecke v. Kinetic Concepts, Inc., 937 F.3d 1201, 1208 (9th Cir. 2019) (cleaned up). A complaint must plead “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) (cleaned up). A claim is plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. When evaluating a motion to dismiss, the court “must presume all factual allegations of the complaint to be true and draw all reasonable inferences in favor of the nonmoving party.” Usher v. City of Los Angeles, 828 F.2d 556, 561 (9th Cir. 1987). Claims for fraud must meet the pleading standard of Federal Rule of Civil Procedure 9(b), which requires a party “alleging fraud or mistake [to] state with particularity the circumstances constituting fraud or mistake.” Rule 9(b) “requires . . . an account of the time, place, and specific content of the false representations as well as the identities of the parties to the misrepresentations.” Swartz v. KPMG LLP, 476 F.3d 756, 764 (9th Cir. 2007) (cleaned up). “This means that averments of fraud must be accompanied by the who, what, when, where, and how of the misconduct charged.” In re Google Assistant Priv. Litig., 546 F. Supp. 3d 945, 955 (N.D. Cal. 2021) (internal quotations omitted). If a court dismisses a complaint for failure to state a claim, it should “freely give discretion to deny leave to amend due to “undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendment previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, [and] futility of amendment.” Leadsinger, Inc. v. BMG Music Publ’g, 512 F.3d 522, 532 (9th Cir. 2008). The Court addresses Corsair’s arguments in the following order: (1) that Plaintiffs’ fraudulent omission claims must again be dismissed; (2) that the Court should strike Plaintiffs’ amended allegations regarding products that were not purchased by Plaintiffs; (3) that the Court should strike Plaintiffs’ national and multistate class action claims; and (4) that Plaintiffs’ amended express warranty claim must be dismissed. A. Omission Claims Corsair again moves to dismiss Plaintiffs’ fraud claims to the extent they allege that the statements on the packaging and in online advertisements constitute fraudulent omissions. Mot. at 7–8; Reply (dkt. 47) at 4–8. In its prior order, the Court held that, to state an omission claim, Plaintiffs must plead either “(1) the defect at issue relates to an unreasonable safety hazard or (2) the defect is material, ‘central to the product’s function,’ and the plaintiff alleges one of the four LiMandri factors.” McKinney, 2022 WL 2820097, at *9 (quoting In re Toyota RAV4 Hybrid Fuel Tank Litig., 534 F. Supp. 3d 1067, 1102 (N.D. Cal. 2021)). Because Plaintiffs did not “allege a defect that is central to the product’s function” in the FAC, and, in fact, “concede[d] that they d[id] not plead any defect at all,” the Court granted Corsair’s motion to dismiss the omission claims. Id. at *9–10. In a footnote, the Court advised Plaintiffs that they “might be able to properly allege a duty to disclose, if they sufficiently allege that the omitted fact goes to a defect (that the memory does

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