Peviani v. Hostess Brands, Inc.

750 F. Supp. 2d 1111, 2010 U.S. Dist. LEXIS 122478, 2010 WL 4553510
CourtDistrict Court, C.D. California
DecidedNovember 3, 2010
DocketCV 10-2303 CBM (VBKx)
StatusPublished
Cited by15 cases

This text of 750 F. Supp. 2d 1111 (Peviani v. Hostess Brands, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peviani v. Hostess Brands, Inc., 750 F. Supp. 2d 1111, 2010 U.S. Dist. LEXIS 122478, 2010 WL 4553510 (C.D. Cal. 2010).

Opinion

*1114 ORDER:

(1) GRANTING DEFENDANTS’ MOTION TO DISMISS PLAINTIFFS’ FIRST AMENDED COMPLAINT; AND

(2) GRANTING IN PART DEFENDANTS’ REQUEST FOR JUDICIAL NOTICE

CONSUELO B. MARSHALL, District Judge.

The matters before the Court are (1) Defendants Hostess Brands, Inc.’s, Interstate Brands Corporation’s, and IBC Sales Corporation’s (collectively, “Defendants”) “Motion to Dismiss Plaintiffs’ First Amended Complaint for Lack of Personal Jurisdiction and Failure to State a Claim for Relief’ (“Motion to Dismiss”); and (2) “Request for Judicial Notice in Support of Defendants’ Notice of Motion and Motion to Dismiss First Amended Complaint and Each Claim Thereof’ (“Request for Judicial Notice”). [Doc. Nos. 19, 21].

JURISDICTION

The Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 1331, 1332,1367 and 15 U.S.C. § 1121.

FACTUAL AND PROCEDURAL BACKGROUND

In this putative class action, Plaintiff Victor Guttmann (“Plaintiff’) alleges that Defendants use misleading, deceptive, and fraudulent misstatements and omissions to market six (6) varieties of baked-goods products under the label “Hostess 100 Calorie Packs.” 1 (First Amended Complaint (“First. Am. Compl.”) at ¶¶4-7, 61.) In particular, Plaintiff alleges that Defendants market Hostess 100 Calorie Packs as containing “0 Grams of Trans Fat,” even though such products contain partially hydrogenated oils (“PVHO”). (Id. at ¶¶5, 61.)

Plaintiff alleges that artificial trans fat is manufactured through a process of partial hydrogenation that results in the production of PVHO. (Id. at ¶¶ 24, 25.) Although PVHO was once touted as a “wonder product,” he alleges that it is now known to have a detrimental impact on human health and has been attributed to numerous health conditions, including heart disease, diabetes, cancer, obesity, liver dysfunction, Alzheimer’s disease, and female infertility. (Id. at ¶¶ 27, 30, 43, 46; Plaintiffs Opposition to Defendant Hostess Brands, Ine.’s Motion to Dismiss (“PL’s Opp’n”) at 1:9-12.) Plaintiff further alleges that Hostess 100 Calorie Packs therefore contain “dangerous levels of artificial trans fat” because there is no safe level of artificial trans fat intake. (First Am. Compl. at ¶¶ 5, 53.)

Plaintiff alleges that he purchased Hostess 100 Calorie Packs at grocery and convenience stores in California beginning in approximately January 2007. (Id. at ¶¶ 15-16.) He further alleges that he read and relied on Defendants’ representation that Hostess 100 Calorie Packs contained “0 Grams of Trans Fat” in deciding to purchase these products. (Id. at ¶ 20.) Plaintiff also alleges that, absent Defendants’ misstatements and omissions, he and other class members would not have purchased Hostess 100 Calorie Packs. (Id. at ¶ 7.)

On March 30, 2010, Plaintiff and Eileen Peviani filed a Complaint against Hostess Brands, Inc. (“Hostess”). [Doc. No. 1.] On *1115 May 6, 2010, Hostess filed a Motion to Dismiss the Complaint, [Doc. No. 9], and a Request for Judicial Notice. [Doc. No. 12.] Plaintiff and Eileen Peviani thereafter filed a First Amended Complaint on May 26, 2010, [Doc. No. 16], alleging the following five causes of action against Hostess, Interstate Brands Corporation, and IBC Sales Corporation: (1) false advertising in violation of the Lanham Act; (2) violations of the California Unfair Competition Law (“UCL”); (3) violations of the California False Advertising Law (“FAL”); (4) violations of the California Consumer Legal Remedies Act (“CLRA”); and (5) violations of the Missouri Merchandise Practices Act (“MMPA”). (First Am. Compl. at ¶¶ 73-109.)

Plaintiff brings this action on behalf of himself and two classes: (1) for restitution and damages on behalf of all persons “who purchased, on or after January 1, 2007, one or more of the Hostess [100 Calorie Packs] in the United States for their own use rather than resale or distribution”; and (2) for injunctive relief on behalf of all persons “who commonly purchase or are in the market for one or more Hostess [100 Calorie Packs] in the United States for their own use rather than resale or distribution.” (Id. at ¶ 62.)

On June 23, 2010, Defendants filed the instant Motion to Dismiss and a Request for Judicial Notice. [Doc. Nos. 19, 21.] An opposition and reply to the Motion to Dismiss were filed thereto. 2 [Doc. Nos. 23, 26.] Plaintiff Eileen Peviani voluntarily dismissed all of her claims, without prejudice, as against all Defendants on August 26, 2010. 3 [Doc. No. 35.]

LEGAL STANDARD

A complaint may be dismissed for failure to state a claim upon which relief can be granted. FED. R. CIV. P. 12(b)(6). The court, viewing all allegations in the complaint in the light most favorable to the plaintiff, must decide if the plaintiff alleges enough facts to state a claim for relief that is plausible on its face. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). “While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, ... a plaintiffs obligation to provide the ‘grounds’ of his ‘entitle[ment] to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.’ ” Id. at 555, 127 S.Ct. 1955 (citations omitted). In other words, courts must review the complaint to determine: (1) if it alleges genuine facts, rather than mere legal conclusions; (2) if the facts alleged (assumed to be true), as well as the reasonable inferences drawn therefrom, establish a claim; and (3) if relief based upon the facts alleged is plausible. Ashcroft v. Iqbal, - U.S. -, 129 S.Ct. 1937, 1949-50, 173 L.Ed.2d 868 (2009). “For a complaint to survive a motion to dismiss, the non-conclusory ‘factual content,’ and reasonable inferences from that content, must be plausibly suggestive of a claim entitling the plaintiff to relief.” Moss v. United States Secret Serv., 572 F.3d 962, 969 (9th Cir.2009).

If a district court grants a motion to dismiss, it must also decide whether to permit a plaintiff to amend the pleading. Although the policy favoring amendments *1116 must be applied with “extreme liberality,” Morongo Band of Mission Indians v. Rose, 893 F.2d 1074

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Bluebook (online)
750 F. Supp. 2d 1111, 2010 U.S. Dist. LEXIS 122478, 2010 WL 4553510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peviani-v-hostess-brands-inc-cacd-2010.