Sanders v. Apple Inc.

672 F. Supp. 2d 978, 2009 WL 150950
CourtDistrict Court, N.D. California
DecidedJanuary 21, 2009
DocketCase C 08-1713 JF (PVT)
StatusPublished
Cited by80 cases

This text of 672 F. Supp. 2d 978 (Sanders v. Apple 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
Sanders v. Apple Inc., 672 F. Supp. 2d 978, 2009 WL 150950 (N.D. Cal. 2009).

Opinion

ORDER 2 GRANTING MOTION TO DISMISS AND TO STRIKE WITH LEAVE TO AMEND

JEREMY FOGEL, District Judge.

Plaintiffs Chandra Sanders (“Sanders”), Keith Yonai (‘Yonai”), and Bonnier Corporation (“Bonnier”) (collectively, “Plaintiffs”) bring this putative class action on behalf of themselves and all persons who purchased a 2007 twenty-inch Aluminum iMac desktop computer designed, manufactured, and sold by Defendant Apple Inc. (“Apple”). Apple moves to dismiss the complaint pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6) and to strike all of the purported class claims. The Court has considered the briefing submitted by the parties as well as the oral arguments of counsel presented at the hearing on November 14, 2008. For the reasons set forth below, the motion will be granted, with leave to amend.

I. BACKGROUND

Apple is a leading manufacturer of personal computers and consumer electronics. One of Apple’s most successful products is a personal desktop computer known as the iMac. Since its introduction in 1998, the iMac has undergone numerous revisions and updates. The most recent version of the iMac (“Aluminum iMac”) was released in August 2007. Aluminum iMacs are available with a twenty-inch active-matrix liquid crystal display (“20-ineh Aluminum iMac”) or a twenty-four-inch active-matrix liquid crystal display (“24-inch Aluminum iMac”).

The 20-inch Aluminum iMac and the 24-inch Aluminum iMac utilize different technologies to display digital images. All digital images consist of pixels, the smallest components of a digitalized picture. Each pixel is comprised of three “channels,” which correspond to the three main colors used to display digital images: red, blue, and green. Every channel contains a certain number of “bits”—the smallest measure of digital information. A bit can take the value of either zero or one, or “on” or “off.” The particular combination of “on” and “off’ bits in each channel results in the desired color of that pixel. The number of bits in each pixel determines the total number of colors a computer monitor is capable of displaying.

The 24-inch Aluminum iMac utilizes an “eight-bit” monitor, capable of displaying 16,777,216 colors. 3 The previous generation of 20-inch iMacs, which the Aluminum iMacs replaced, also used an “eight-bit” monitor. However, the new 20-inch Aluminum iMac uses a “six-bit” monitor that is able to display only 262,144 colors. 4 To create the same effect as the “eight-bit” monitor, the “six-bit” monitor uses color simulation processes known as “dithering,” and “frame rate control” (“FRC”), which causes the brain to perceive a particular color shade by perceiving many nearly identical shades. Compl. ¶ 21. Specifically, dithering uses a combination of adjacent pixels to produce the desired shade. *983 Through the FRC process, a single pixel displays alternating shades of color that are almost identical to the desired shade. When run at a high speed, these processes give the illusion of the desired color shade. Plaintiffs allege that the “emulation of true colors” through dithering can cause the appearance of transverse stripes in smooth color gradients and can result in flickering on particular images. Compl. ¶ 22. They also assert that the 20-inch Aluminum iMacs have a narrower viewing angle, less color depth and accuracy, and are more susceptible to washout across the screen. Plaintiffs contend that these flaws are “particularly crippling” when displays that use this technology are used for image and video editing. Compl. ¶ 22.

Plaintiffs allege that Apple markets both its 20-inch and 24-inch Aluminum iMacs for editing movies and photos and describes the display of both Aluminum iMacs as though they were interchangeable. Plaintiffs assert that at a press conference announcing the new Aluminum iMacs on August 7, 2007, Apple CEO Steve Jobs claimed that photos and movies “look way better on these glossy, beautiful, crisp displays.” Compl. ¶ 25. In a press release issued that same day, Apple stated that the new iMac line “featured gorgeous 20- and 24-inch widescreen displays” that provide “incredibly crisp images, ideal for photos and movies ... ”. Compl. ¶ 26. Plaintiffs also assert that on its website, Apple states that: “[n]o matter what you like to do on your computer—watch movies, edit photos, play games, even just view a screen saver—it’s going to look stunning on an iMac.” Plaintiffs allege that Apple made each of these representations without revealing that a the 20-inch Aluminum iMac uses “a significantly inferior display” to the display found in both the 24-inch Aluminum iMac and the 20-inch prior generation iMac. Compl. ¶ 26. Plaintiffs also allege that in the “Technical Specifications” for both the 20-inch and 24-inch Aluminum iMacs, the Apple website states: “[mjillions of colors at all resolutions” without disclosing that the 20-inch Aluminum iMac is actually capable of displaying only 262,144 true colors. Compl. ¶ 34.

Between January and March 2008, Plaintiff Bonnier purchased sixteen 20-inch Aluminum iMacs for various departments of its magazine publishing business. Bonnier asserts that it purchased these computers based on its “positive experience and satisfaction with the two previous generations of iMacs that it owned.” Compl. ¶ 37. Yonai purchased his 20-inch Aluminum iMac in August 2007 for his graphics design business. Yonai alleges that he made his purchase based on “the information presented by ... Apple on its website” and recommendations by friends in the graphics arts industry who owned previous generation iMacs. Compl. ¶ 41. Bonnier and Yonai both allege that after purchasing their 20-inch Aluminum iMacs, they noticed color shifting on the screen. Yonai asserts that this color-shifting caused “problems with his graphics work.” Compl. ¶42. Plaintiffs allege that they “would not have acted as they did if they had known of the concealed material facts.” Compl. ¶ 57. Plaintiffs filed the instant action on March 31, 2008 on behalf of themselves and all persons or entities in the United States who own a 20-ineh Aluminum iMac, alleging fraudulent concealment, breach of express warranty, violation under Unfair Competition Law (“UCL”), and unjust enrichment.

II. RULE 12(b)(1) MOTION TO DISMISS

A. Legal Standard

Because Article III standing “pertain[s] to a federal court’s subject-matter jurisdiction under Article III, [it is] properly raised in a motion to dismiss under Federal Rule of Civil Procedure 12(b)(1) ...." White v. Lee, 227 F.3d 1214, *984 1242 (9th Cir.2000). “A Rule 12(b)(1) jurisdictional attack may be facial or factual.” Safe Air For Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir.2004). With a factual Rule 12(b)(1) attack, a court may look beyond the complaint to matters of public record without having to convert the motion into one for summary judgment. See id. It also need not presume the truthfulness of the plaintiffs’ allegations. White,

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672 F. Supp. 2d 978, 2009 WL 150950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanders-v-apple-inc-cand-2009.