Tiffni Altes v. Bulletproof 360, Inc.

District Court, C.D. California·Decided March 5, 2020·No. 2:19-cv-04409·Unknown

Opinion

O 1

2 3 4 5 6 7 United States District Court 8 Central District of California 9 10 11 TIFFNI ALTES, Case No. 2:19-cv-04409-ODW (SKx) 12 Plaintiff, ORDER GRANTING IN PART, AND 13 v. DENYING IN PART, DEFENDANT’S 14 BULLETPROOF 360, INC., MOTION TO DISMISS [29] 15 Defendant. 16 17 19 Defendant Bulletproof 360, Inc. (“Bulletproof”) moves to dismiss claims in 20 Plaintiff Tiffni Altes’s First Amended Complaint (“FAC”) alleging that Bulletproof 21 presents misleading health claims on its product’s label. (See generally Mot. to 22 Dismiss (“Mot.”), ECF No. 29.) For the reasons that follow, the Court GRANTS IN 23 PART, AND DENIES IN PART, Bulletproof’s Motion to Dismiss (“Motion”).1 25 Bulletproof manufactures, markets, distributes, and sells Bulletproof Cold Brew 26 Coffee (“Coffee Product”). (FAC ¶ 3, ECF No. 26.) Altes alleges that she purchased 27

28 1 After carefully considering the papers filed in connection with the Motion, the Court deemed the matter appropriate for decision without oral argument. Fed. R. Civ. P. 78; C.D. Cal. L.R. 7-15. 1 Bulletproof’s Coffee Product “at least twice in the last two years.” (FAC ¶ 83.) In 2 making her purchase, Altes relied on the label as a whole as well as the following 3 specific claims: “Certified Clean Coffee,” “Brain Octane Oil,” “Fuel to Sustain Your 4 Mind and Body,” “0g Sugar,” “Lasting Energy,” “Fewer Cravings [¶] Brain Octane 5 Oil Powers Your Brain and Curbs Snack Attacks,” and “It’s clean coffee certified to be 6 free of 27 energy-sapping toxins, plus grass-fed butter and Bulletproof Octane Oil— 7 extracted from the most potent part of the coconut—to power your brain and body and 8 give you steady, all day energy.” (FAC ¶ 86.) 9 The labels were revised on October 2018 and the following allegedly deceiving 10 claims still remain on the labels: “Brain Octane Oil,” “Fuel to Sustain Your Mind and 11 Body,” 0g Sugar,” “Lasting Energy,” “Fewer Cravings [¶] Brain Octane Oil Powers 12 Your Brain and Curbs Snack Attacks.” (FAC ¶¶ 17, 18.) Altes also lists similar health 13 claims present on Bulletproof’s website, the link for which is referenced on the label 14 of the Coffee Product. (FAC ¶ 21.) Altes alleges that these claims are deceptive and 15 misleading and that, had she known the Coffee Product was unlawfully labeled or 16 misbranded, she would not have purchased the product. (FAC ¶¶ 27–37, 83.) 17 Altes further alleges that Bulletproof ignores the Food and Drug Administration 18 (“FDA”) regulations in marketing its Coffee Product, makes health benefit claims that 19 should require FDA new drug approval, and fails to comply with FDA regulations 20 governing nutrient content claims and health claims. (FAC ¶¶ 6–7, 50–70.) For 21 example, Altes argues that Bulletproof should have complied with labeling 22 requirements for over-the-counter stimulant drug products because of its claims to 23 boost energy. (FAC ¶¶ 46–49.) Bulletproof also allegedly deceives consumers into 24 believing that the Coffee Product is a low-calorie item with its “zero sugar” and “0g 25 sugar” claims. (FAC ¶¶ 50–61.) Further, Altes alleges that the FDA regulations 26 disqualify the Coffee Product from making any health claim at all because of the 27 excess saturated fats content. (FAC ¶¶ 65–70.) 28 On May 21, 2019, Altes brought suit against Bulletproof on behalf of herself 1 and all others similarly situated alleging violations of California’s (1) Unfair 2 Competition Law (“UCL”) and (2) Consumer Legal Remedies Act (“CLRA”). (See 3 Compl. ¶¶ 63–84, ECF No. 1.) After Bulletproof moved to dismiss Altes’s initial 4 Complaint, Altes filed her FAC. (See Mot. to Dismiss, ECF No. 22; FAC.) 5 Bulletproof now moves to dismiss the FAC under Federal Rules of Civil Procedure 6 12(b)(1) and 12(b)(6). (See Mot.) 8 A. 12(b)(1) 9 A motion to dismiss under Federal Rule of Civil Procedure (“Rule”) 12(b)(1) 10 examines the court’s subject matter jurisdiction. An Article III federal court lacks 11 subject matter jurisdiction over a suit brought by a plaintiff without Article III 12 standing as such a suit is not a “case or controversy.” Cetacean Cmty. v. Bush, 386 13 F.3d 1169, 1174 (9th Cir. 2004). 14 To establish Article III standing, a plaintiff must demonstrate “(1) an injury-in- 15 fact, (2) [that is] fairly traceable to the challenged conduct of the defendant, and 16 (3) [that is] likely to be redressed by a favorable judicial decision.” Lujan v. 17 Defenders of Wildlife, 504 U.S. 555, 560–61 (1992) (internal quotation marks 18 omitted). The injury-in-fact requirement calls for a plaintiff to demonstrate that he or 19 she suffered “an invasion of a legally protected interest” that is “concrete and 20 particularized” and “actual or imminent, not conjectural or hypothetical.” Id. 21 When a party moves to dismiss for lack of subject matter jurisdiction, the party 22 asserting jurisdiction has the burden of establishing it. Kokkonen v. Guardian Life 23 Ins. Co. of Am., 511 U.S. 375, 377 (1994). 24 B. 12(b)(6) 25 A court may dismiss a complaint under Rule 12(b)(6) for lack of a cognizable 26 legal theory or insufficient facts pleaded to support an otherwise cognizable legal 27 theory. Balistreri v. Pacifica Police Dep’t, 901 F.2d 696, 699 (9th Cir. 1988). “To 28 survive a motion to dismiss . . . under Rule 12(b)(6), a complaint generally must 1 satisfy only the minimal notice pleading requirements of Rule 8(a)(2)”—a short and 2 plain statement of the claim. Porter v. Jones, 319 F.3d 483, 494 (9th Cir. 2003); see 3 also Fed. R. Civ. P. 8(a)(2). The “[f]actual allegations must be enough to raise a right 4 to relief above the speculative level.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 5 (2007). The “complaint must contain sufficient factual matter, accepted as true, to 6 state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 7 678 (2009) (internal quotation marks omitted). “A pleading that offers ‘labels and 8 conclusions’ or ‘a formulaic recitation of the elements of a cause of action will not 9 do.’” Id. (quoting Twombly, 550 U.S. at 555). 10 Whether a complaint satisfies the plausibility standard is a “context-specific 11 task that requires the reviewing court to draw on its judicial experience and common 12 sense.” Id. at 679. A court is generally limited to the pleadings and must construe all 13 “factual allegations set forth in the complaint . . . as true and . . . in the light most 14 favorable” to the plaintiff. Lee v. City of Los Angeles, 250 F.3d 668, 679 (9th Cir. 15 2001). But a court need not blindly accept conclusory allegations, unwarranted 16 deductions of fact, and unreasonable inferences. Sprewell v. Golden State Warriors, 17 266 F.3d 979, 988 (9th Cir. 2001). 18 Accusations of fraud require a plaintiff to plead with particularity the 19 circumstances constituting fraud. See Fed. R. Civ. P.

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