Neubauer v. Red Lobster Hospitality LLC

CourtDistrict Court, S.D. Illinois
DecidedMarch 20, 2025
Docket3:24-cv-01160
StatusUnknown

This text of Neubauer v. Red Lobster Hospitality LLC (Neubauer v. Red Lobster Hospitality LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neubauer v. Red Lobster Hospitality LLC, (S.D. Ill. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS

CASSANDRA NEUBAUER, individually and on behalf of all others similarly situated,

Plaintiff,

v. Case No. 3:24-CV-01160-NJR

CONTINENTAL MILLS, INC.,

Defendant.

MEMORANDUM AND ORDER

ROSENSTENGEL, Chief Judge: At the golden, warm, pillowy center of this lawsuit sits a culinary icon—the Red Lobster Cheddar Bay Biscuit. These crispy, buttery biscuits are familiar to and beloved by many. So much so, that many customers seek to recreate the cheesy, garlicky goodness from home. Plaintiff Cassandra Neubauer (“Neubauer”) is one such customer. She purchased a box of the Red Lobster Cheddar Bay Biscuit Mix (the “Mix”) from her local grocery store presumably to create that fight-over-the-last-one treat in her own kitchen. But evidently, she came up a few biscuits short. Despite the representations on the box that the Mix made 10 biscuits, she discovered that, based on the listed one-third cup serving size, she could only make about seven.1 The amended class action complaint (Doc. 21) contains the following images of the

1 The following facts are derived from Neubauer’s amended class action complaint (Doc. 21), and the Court accepts them as true for the purposes of Continental Mills’s motion to dismiss. Mix’s packaging:? : Bog Nutrition Facts ER esters aie teagan ii a (25) iene eer i i i aces Pon pa 5 1s: MRR OR aa herb blend (04g) treet ils Hiciaes eterna ani Ses fons PDD. ee PW EP. saat □□□ seme es Ea ee Calories 150 PeeWee rang (Mts □□□ □□ □□ a "| io er MC emer let mar eT -_ - Total Fat Ty Ty BCE Ue □□□ Cea a rf ss eed saraifa§ 15% □□□ eC ese eR Taree v0 ci, ~~ ae Sania ie BULLE See are | ees a Sodium 400mg 11% 5 ee ae : Fi Pe Total Carbohydrate {3 7 eT ETT =e ~ a 4 Dietary Fibs Og □□ Zz Ps bd : ic: 7 i 4 a ———EEa =——. —_ iy iaiostimain ZO, Sanne TT PETE A ies fe. e100 ert tg pentane Set itt Neubauer alleges that the front of the box lists the aggregate weight of the Mix as 322 grams and states that a box makes 10 biscuits. (Doc. 21, 4 2, 5, 20). On the box’s Nutrition Facts panel, each serving size is described as one-third cup weighing 32 grams. (id. at [| 3, 4, 22). The Nutrition Facts Panel also represents that the box contains about 10 servings per container. (Id. at J 3, 21). According to Neubauer, one-third cup of the Mix actually weighs 46.9 grams —not 32 grams.? (Id. at [| 6, 23). Using a one-third cup serving size, which weighs 46.9 grams, makes approximately seven biscuits (equal to 6.9 servings). (Id. at 9] 7,26). Accordingly, Neubauer asserts that the number of servings in the Mix is misrepresented by an average of 3.1 servings per box, or 31.38%. (Id. at □□ 8, 24, 25). Converted to consumer costs, as the purchase price of the Mix was $2.89, Neubauer and the class seek to recover $0.92 per box sold. (Id. at J 13, 14). According to Neubauer, Defendant Continental Mills, Inc. (“Continental Mills”)

2 The amended complaint did not indicate a source for these images. 3 Apparently, Neubauer tested 168 samples from 12 different containers from 12 different lots of the Mix to arrive at this average weight. (Doc. 21, { 23).

Page 2 of 18

produces, markets, and sells the Mix throughout Illinois and the United States and is fully aware of their misrepresentation. (Id. at ¶¶ 9, 19). In light of these misrepresentations,

Neubauer alleges that she and other potential class members were deceived by Continental Mills, who fraudulently charged them for servings of the Mix they could never consume. (Id. at ¶¶ 27-41). Further, Neubauer avers that she would not have paid as much for the Mix absent the false and misleading household measurement serving- size statements by Continental Mills. (Id. at ¶ 35). She hopes to purchase the Mix again, but risks future economic harm if the box continues to misrepresent the Mix’s output.

(Id. at ¶ 36). Neubauer filed this suit as a putative class action in Illinois state court in March 2024. (Doc. 1-1). Continental Mills and since-dismissed Defendant Red Lobster Hospitality LLC timely removed the action to this Court. (Doc. 1). Neubauer seeks to certify two classes:

Illinois Class: All Illinois citizens who purchased the Red Lobster™ Cheddar Bay Biscuit® Mix in the five years preceding the filing of this Complaint up through the date of notice.

Nationwide Class: All United States citizens who purchased the Red Lobster™ Cheddar Bay Biscuit® Mix in the United States during the Class Period.

(Doc. 21, ¶ 44). Her amended complaint includes claims for breach of express warranty (Count I), deceptive and unfair practices in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”) (Counts II and III), violation of the Illinois Uniform Deceptive Trade Practices Act (“IUDTPA”) (Count IV), and, in the alternative, unjust enrichment (Count V). (Doc. 21). For relief, she seeks statutory, compensatory, punitive damages, and/or restitution, costs and expenses, and injunctive relief. (Id.). Continental Mills moves to dismiss the amended class action complaint for failure

to state a claim. (Doc. 23). Neubauer filed a response in opposition (Doc. 28), and Continental Mills filed a reply in support of its position. (Doc. 29). SUBJECT MATTER JURISDICTION This case was removed from the Circuit Court for the Twentieth Judicial Circuit in St. Clair County, Illinois, pursuant to the Court’s jurisdiction under the Class Action Fairness Act of 2005 (“CAFA”) and 28 U.S.C. § 1332(d). Under CAFA, federal courts have

jurisdiction to hear a class action if the proposed class has more than 100 members, the parties are minimally diverse, and the amount in controversy exceeds $5 million. Sudholt v. Country Mut. Ins. Co., 83 F.4th 621, 625 (7th Cir. 2023) (citing 28 U.S.C. § 1332(d)(2), (d)(5)(B)). Here, Neubauer is a citizen of Illinois, Continental Mills is a citizen of Washington,

its state of incorporation and the home of its principal place of business, and the class that Neubauer seeks to represent are citizens of Illinois and other states across the country. (Doc. 1, pp. 5-6; Doc. 21, ¶¶ 14-15). Thus, there is minimal diversity between the parties. The Notice of Removal explains that the putative class consists of more than 100 members, and that the aggregate claims of the proposed class plausibly exceed $5 million,

including any statutory damages, but exclusive of interest and costs. (Doc. 1, pp. 2-4). This Court, therefore, has subject matter jurisdiction over the action. LEGAL STANDARD A court may dismiss a complaint for failure to state a claim upon which relief can be granted. FED. R. CIV. P. 12(b)(6). A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) “tests whether the complaint states a claim on which relief may be

granted.” Richards v. Mitcheff, 696 F.3d 635, 637 (7th Cir. 2012). To survive a Rule 12(b)(6) motion, the plaintiff only needs to allege enough facts to state a claim to relief that is plausible on its face. Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007). A plaintiff need not plead detailed factual allegations, but must provide “more than labels and conclusions, and a formulaic recitation of the elements.” Id. at 555. The court also must accept the complaint’s well-pleaded factual allegations and

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