Trammell v. KLN Enterprises, Inc.

District Court, S.D. California·Decided April 22, 2024·No. 3:23-cv-01884·Unknown

Opinion

MARK TRAMMELL, individually and on Case No.: 3:23-cv-01884-H-JLB behalf of all those similarly situated, ORDER GRANTING DEFENDANT’S Plaintiff, MOTION TO DISMISS WITH v. LEAVE TO AMEND

KLN ENTERPRISES, INC., dba Wiley [Doc. No. 6.] Wallaby, a Minnesota corporation, Defendant. On October 16, 2023, Plaintiff Mark Trammell (“Plaintiff”) filed a class action complaint against Defendant KLN Enterprises, Inc., dba Wiley Wallaby (“Defendant”). (Doc. No. 1.) On December 21, 2023, Defendant filed a motion to dismiss Plaintiff’s complaint pursuant to Federal Rules of Civil Procedure 8, 9(b), 12(b)(1), and 12(b)(6). (Doc. No. 6.) On January 12, 2024, Plaintiff filed a response in opposition to Defendant’s motion to dismiss. (Doc. No. 7.) On January 22, 2024, Defendant filed a reply. (Doc. No. 10.) On February 13, 2024, the Court, pursuant to its discretion under Local Rule 7.1(d)(1), submitted the motion on the parties’ papers. (Doc. No. 12.) For the reasons below, the Court grants Defendant’s motion to dismiss with leave to amend. / / / / / / The following factual background is taken from the allegations in Plaintiff’s complaint. Plaintiff is a resident and citizen of the state of California. (Doc. No. 1, Compl. ¶ 1.) Defendant manufactures and sells licorice candies including, Wiley Wallaby Very Berry Licorice. (Id. at 1.) On or about May 23, 2023, Plaintiff claims that he purchased Wiley Wallaby Very Berry Licorice from a Target in Encinitas, California. (Id. ¶ 18.) Plaintiff alleges that he “is a student who attempts to eat ‘clean’ . . . and he prefers to consume only products that contain all-natural ingredients and flavorings.” (Id. ¶ 19.) Plaintiff further alleges that he “carefully reviews food and product labels, including the [Wiley Wallaby Very Berry Licorice] label, to understand the characteristics of the products he consumes.” (Id.) The packaging for Defendant’s product states that it is “Natural Strawberry & Raspberry Flavored Licorice,” “Naturally Flavored,” and “Free of . . . Artificial Colors & Flavors.” (Id. ¶ 21.) Plaintiff alleges that these statements are reinforced by depictions of fruits. (Id.) As an example of such statements, Plaintiff provides in his complaint the following images depicting the packaging for Defendant’s Wiley Wallaby Very Berry Licorice:1 / / / / / /

1 “A court may . . . consider certain materials—documents attached to the complaint, documents incorporated by reference in the complaint, or matters of judicial notice—without converting the motion to dismiss into a motion for summary judgment.” United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003). Here, the Court considers Defendant’s Wiley Wallaby Very Berry Licorice labels as part of the complaint for purposes of the instant motion because Plaintiff relies on Defendant’s Wiley Wallaby Very Berry Licorice labels in the complaint and defines the term “the Products” as “Wiley Wallaby Very Berry Licorice” in the complaint. See In re NVIDIA Corp. Sec. Litig., 768 F.3d 1046, 1058 n.10 (9th Cir. 2014) (“Because Plaintiffs incorporate by reference Mr. Hunt’s declaration, relying on portions of it in their complaint, we may properly < Oy w _ a 2a i NS aon Fact □□ : □ wiley 72°) (_ win Bere □□ [ WALLABY }) it | \ □□□ Seal] vi a | see |e 4) Ce | TERKS alr | Se | a mo! □ (Tem OL 33 ee |S a ee □ ciuTen FREE WN ; □ Sioccccai ener | eteamz □□ coe, i me i Wee □ nr ero = 6|| al afl ce | | | cape eee =| ze o> Se EM □ insite 000 mai i) Da __ SOE aS □ fog x ae ence □ < = & | veRYBERRYa.|| ae Sees asbs 6 gramme Pe ee 7 ewe; Sore @ = □□ 7h fF, a aor . a Vey ne wk □□ @IETWIESITISH ME Gah creer nce t OAS dd.) Plaintiff alleges that those representations on Defendant’s packaging are false and misleading because Wiley Wallaby Very Berry Licorice is flavored “using an artificial flavoring, DL malic acid, that is derived from petrochemicals.” (Id. 22.) Plaintiff asserts “[w]hile there is a naturally occurring form of malic acid, ... testing conducted on June 28, 2023 by an independent third-party laboratory of the Products purchased by Plaintiff, confirmed the presence of the “‘D’ isomer of malic acid in the Products[,] [which] means that the malic acid that Defendant uses in these Products is . . . a synthetic substance derived from petrochemicals.” (Id. § 23.) Plaintiff claims that he reviewed the product’s labels, including the statement that Wiley Wallaby Very Berry Licorice is naturally flavored, prior to purchasing the product. (Id. § 44.) Plaintiff also contends that he relied the labels’ statements and would not have purchased the product or would have only been willing to pay a substantially reduced price had he known about Defendant’s alleged misrepresentations. (Id. 4 49.) On October 16, 2023, Plaintiff filed a class action complaint against Defendant, alleging claims for: (1) violations of the California Consumers Legal Remedies Act

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Trammell v. KLN Enterprises, Inc., (S.D. Cal. 2024).

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