Sidhu v. Bayer Healthcare Pharmaceuticals Inc.

District Court, N.D. California·Decided October 5, 2023·No. 5:22-cv-01603·Unknown

Opinion

PRIYA SIDHU, individually and on behalf Case No. 22-cv-01603-BLF of all others similarly situated, Plaintiff, ORDER GRANTING IN PART AND DENYING IN PART MOTION TO v. DISMISS FIRST AMENDED CLASS BAYER HEALTHCARE PHARMACEUTICALS INC., Re: ECF No. 45 Defendant.

Presently before the Court is Defendant Bayer Healthcare Pharmaceuticals, Inc.’s (“Defendant”) Motion to Dismiss (“Motion”) Plaintiff Priya Sidhu’s (“Plaintiff”) First Amended Class Action Complaint (“FAC”). See Mot., ECF No. 45. Plaintiff’s FAC alleges that Defendant markets and sells an intrauterine device (“IUD”), branded as Mirena (“Mirena IUD”), as suitable for birth control, but that Mirena in fact is not suitable for use as birth control because it increases the risk of breast cancer in users by approximately 20 to 30%. See FAC ¶ 1, ECF No. 44. Plaintiff brings this lawsuit as a putative class action on behalf of both a nationwide class and a California subclass, and asserts claims on behalf of the nationwide class for (1) breach of the implied warranty of merchantability; (2) unjust enrichment; and (3) fraud; as well as (on behalf of the California subclass only) (4) violation of California’s Unfair Competition Law (“UCL”); (5) violation of California’s Consumers Legal Remedies Act (“CLRA”); and (6) violation of California’s False Advertising Law (“FAL”). Having considered the parties’ written and oral arguments, the Court GRANTS IN PART and DENIES IN PART Defendant’s Motion for the following reasons. A. Factual Background The Mirena IUD is a levonorgestrel-releasing intrauterine system (“LNG-IUS”). FAC ¶ 2. Upon insertion into a woman’s uterus, the Mirena IUD reduces the chance pregnancy and decreases menstrual bleeding by releasing the hormone progestin, which thickens mucus in the cervix to stop sperm from reaching or fertilizing an egg, thins the lining of the uterus, and partially suppresses ovulation. Id. Defendant manufactures, markets, distributes, sells, and makes the Mirena IUD available for prescription throughout the United States and the State of California. Id. ¶¶ 26, 39. The Mirena IUD was first approved for use in the United States in 2000. Id. ¶ 20. Plaintiff alleges that five studies published between 2010 and 2020 show that users of the Mirena IUD have approximately 20% to 30% excess risk for breast cancer as compared with non-users of hormonal contraceptives. See FAC ¶¶ 9–18. She further alleges that Defendant, despite its knowledge of studies indicating such a risk, has not disclosed to doctors or consumers that the Mirena IUD significantly increases the risk of breast cancer, changed the labeling or prescribing information on the Mirena IUD, or presented it to the FDA to change the product’s labeling. Id. ¶¶ 5, 9, 19. Defendant’s original prescribing language stated that “[w]omen who currently have or have had breast cancer, or have a suspicion of breast cancer, should not use hormonal contraception because some breast cancers are hormone-sensitive.” Id. ¶ 20. In 2009, Defendant updated the Mirena IUD’s prescribing information to provide: “Spontaneous reports of breast cancer have been received during postmarketing experience with Mirena. Because spontaneous reports are voluntary and from a population of uncertain size, it is not possible to use postmarketing data to reliably estimate the frequency or establish causal relationship to drug exposure. Two observational studies have not provided evidence of an increased risk of breast cancer during the use of Mirena.” Id. ¶ 21. Most recently, in 2015, Defendant submitted an application to the FDA following the publication of two studies related to the breast cancer risk in Mirena IUD users, resulting in the following update to the prescribing information: provide conclusive evidence of increased risk.” Id. ¶ 22. Plaintiff is a resident and citizen of San Jose who was prescribed and used the Mirena IUD in California between February 2019 and February 2022. FAC ¶ 37. The doctor who prescribed the Mirena IUD to Plaintiff was not aware of the statistically significant increased risk of breast cancer of about 20% to 30% caused by the Mirena IUD, and Defendant did not inform the doctor of the risk. Id. The materials provided by Defendant and reviewed by Plaintiff’s doctor stated that there was no evidence of an increased risk of breast cancer for women like Plaintiff, i.e., women who had never had breast cancer, a suspicion of having breast cancer, or a family history of breast cancer. Id. Accordingly, Plaintiff’s doctor prescribed the Mirena IUD to Plaintiff and did not convey any warnings. Id. Plaintiff alleges that her doctor would not have prescribed or instructed Plaintiff to use the Mirena IUD had Defendant not mispresented that there was no evidence of an increased risk of breast cancer from using Mirena for patients who never had breast cancer, and had Defendant not failed to disclose to the doctor the statistically significant increased risk of developing breast cancer from using the Mirena IUD. Id. ¶ 38. Plaintiff further alleges that she paid $50 out-of-pocket for the Mirena IUD, and that she would not have paid for the Mirena IUD had Defendant not failed to disclose the statistically significant increased risk of developing breast cancer from using the Mirena IUD. FAC ¶¶ 37–38. B. Procedural Background Plaintiff filed this action on March 14, 2022, alleging the same claims at issue here. See Compl., ECF No. 1. Defendant moved to dismiss in May 2022. See ECF No. 17. The Court granted in part and denied in part the motion, and permitted Plaintiff leave to amend all dismissed claims, except those seeking injunctive relief. See ECF No. 38 (“Prior Order”). Plaintiff filed the FAC on February 10, 2023. Defendant filed the instant Motion in March 2023, and briefing was complete in June 2023. The Court heard oral argument on the Motion on August 3, 2023. Defendant has requested that the Court take judicial notice of excerpts of seven documents in ruling on the Motion. See Req. Jud. Notice (“RJN”), ECF No. 45-1; Decl. of Isabelle L. Ord for judicial notice. See Opp’n 2, ECF No. 48. The two doctrines that permit district courts to consider material outside the pleadings without converting a motion to dismiss into a motion for summary judgment are (1) judicial notice under Federal Rule of Evidence 201 and (2) incorporation by reference. Khoja v. Orexigen Therapeutics, Inc., 899 F.3d 988, 998 (9th Cir. 2018). Under the judicial notice doctrine, a court may judicially notice a fact that is “not subject to reasonable dispute,” i.e., a fact that is “generally known,” or “can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 201(b)(1)–(2). If a judicially noticeable document contains disputed facts, the court may notice the document, but not the disputed facts therein. Khoja, 899 F.3d at 999 (“[A] court cannot take judicial notice of disputed facts contained in [judicially noticeable] public records.”) (citation omitted). “[I]ncorporation-by-reference is a judicially created doctrine that treats certain documents as though they are part of the complaint itself.” Id. at 1002. Under this doctrine, a court may consider a document “if the plaintiff refers extensively to the document or the document forms the basis of the plaintiff's claim.” United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003). A court generally “may assume an incorporated document’s contents are true for purposes of a motion to dismiss under Rule 12(b)(6),” but “it is improper to assume the truth of an incorporated document if such assumptions only serve to dispute facts stated in a well-pl

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