Rosenwald v. Kimberly Clark Corporation

District Court, N.D. California·Decided August 14, 2023·No. 3:22-cv-04993·Unknown

Opinion

San Francisco Division JUDAH ROSENWALD, CRAIG Case No. 3:22-cv-04993-LB CHOURAKI-LEWIN, CINDY RUTTER, WILLIAM RUTTER, TRINITY ORDER DISMISSING AMENDED GUEVREMONT, NATASHA COMPLAINT PEREZ, JEANINE ECKERT, and Re: ECF No. 25 PRESTON LESCHINS, on behalf of themselves and all others similarly situated, Plaintiffs, v. KIMBERLY CLARK CORPORATION, Defendant. In this putative class action, the plaintiffs, who are from different states (California, Wyoming, Washington, Colorado, Florida, Pennsylvania, and New Jersey) claim that the defendant’s marketing of Kleenex Wet Wipes Germ Removal falsely suggests that the product is a germicide, in violation of their states’ consumer-protection laws. The front label claims that the product “wipes away 99% of germs from skin” and has “no harsh chemicals.” The back label lists the product’s ingredients (without any germicides) and has representations such as “alcohol free” and “no harsh chemicals.” The defendant moved to dismiss, arguing mainly that (1) under Federal Rule of Civil the defendant’s California contacts do not establish general jurisdiction and there is no specific jurisdiction for claims arising from out-of-state purchases, and (2) under Rules 9(b) and 12(b)(6), the labels are not deceptive and the plaintiffs did not plead fraud with particularity. The court grants the motion. 1. Parties and Jurisdictional Allegations The eight plaintiffs bought the product in their states of residence between February 2020 and January 2021. Only two plaintiffs reside in California: Judah Rosenwald and Craig Chouraki- Lewin. The rest live in Wyoming, Washington, Colorado, Florida, Pennsylvania, and New Jersey.1 The defendant, Kimberly-Clark Corporation, is a global consumer-products company incorporated in Delaware and headquartered in Dallas, Texas.2 It has three California locations, two in Ontario and one in Chino. From 1956 to at least 2020, it operated a manufacturing plant in Fullerton, California, and its Careers webpage lists jobs that are available there currently. It is advertising for jobs: an IT analyst and PMO program manager in Los Angeles and business- analyst and customer-development-associate positions in Pleasanton. “Key executive personnel operate out of California:” (1) Lynda Talamayan, Procurement Manager, in Fremont; (2) Kurt Stitcher, General Counsel and VP of Compliance, in Irvine; (3) Aileen Zerrudo, Vice President of Global Communications, in Oakland; and (4) Ellen Brown, Associate General Counsel, Customer Development, who is located in the San Francisco Bay Area and whose latest post reads, “We are hiring! Please share with any superstar paralegals who may be interested in supporting K-C’s fantastic US sales team.”3

1 Am. Compl. – ECF No. 24 at 2–3 (¶ 1), 12–13 (¶ 32). Citations refer to the Electronic Case File (ECF); pinpoint citations are to the ECF-generated page numbers at the top of documents. 2 Kimberly-Clark Quarterly Rep. (Form 10-Q) (June 30, 2023), https://www.sec.gov/ix?doc=/Archives/edgar/data/55785/000005578523000054/kmb-20230630.htm. The court judicially notices the undisputed facts on the SEC’s website. Fed. R. Evid. 201(b); Yee v. Select Portfolio, Inc., No. 18-CV-02704-LHK, 2018 WL 2938877, at *4 (N.D. Cal. June 12, 2018). The court can look to matters outside the complaint when assessing personal jurisdiction. ] 2. The Product 2 The defendant sold the product nationally through retailers but discontinued it shortly after the 3 plaintiffs sent their letter under California’s Consumer Legal Remedies Act (CLRA).* This is the 4 front label:° 5 ’ i SC Ton A ie) a eB 6 a sty ws a a 7 ee — 8 tani i a 4

10 □□ LEA] Ohoks 11 we eo 5 2 [3 a eS Lo : 7

2 oo — —— kh a 90 WET WIPES Gar □ 2B PRU isi: aN a 757/195 144on 14

15 The product name is “Kleenex Wet Wipes Germ Removal.” The label represents that the A 16 || product “safely wipes away 99% of germs from skin” and has “no harsh chemicals.”

Z 18 19 20 21 22 23 24 25 26 ‘dd. at4 (4), 14 35). > Front Label, Ex. A to Mot. — ECF No. 25-1 at 2. The plaintiffs did not dispute that the labels were 27 accurate or object to the court’s consideration of them. They cannot plead around the undisputed labels, and thus the court considers them under the incorporation-by-reference doctrine. Knievel v. 28 ESPN, 393 F.3d 1068, 1076 (9th Cir. 2005).

] This is the back label:° 2 7 = - □ Ve BN □□□ 2 ny hf □□ 3 ss delat fn dooghy | a4) et ee Si Lanrsery tase = a, et eo ae an ke a Laci aaekn Ss Ot = | ? □□ 4 □□ dosed tL in Ty □ Sie ral at nee As es □□ le = At i ? 5 ia 5 paaaints □□□ hala Ge aoe ee 6 rat = pees: tlt} 7 7 i a a es 8 ie 9 SS Prem! or hy ; ~. 4) 10 ees. = □ | aot ee | 12 Makara ead See Nt eS SS bres va = =m 4 □□□ 13 & 14 □□ 15 ae - ee a7 □ ann tb ee pe Senet, i = penne a □□ 47 Re . Re a Pe gespeeray ley ) es] ee petit tk A □ reer eet me + □ ZA 18 et pevng rene i f 3352 Vi □ betes tialoLs tt □□ DZ a 20 i as ee 2g r A

21 It refers to the cleansing power of water, anytime, anywhere. The product is soft on the skin, 22 hypoallergenic, dermatologically tested, alcohol free, and paraben free. It is strong for hands and 23 soft for face and body. Its “gentle ingredients” are water, glycerin, aloe, operative ingredients that 24 are mild surfactants (soaps or cleansers, here, coco-betaine and polysorbate 20), and other non- 25 germicidal ingredients.’ The two pictures show using the wipes to clean hands and pots. 26 27 ¢ Back Label, Ex. A to Mot. — ECF No. 25-1 at 2-3. 28 7 Am. Compl. — ECF No. 24 at 6 (¢ 10).

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