Ward v. Pepperidge Farm, Inc.

CourtDistrict Court, S.D. New York
DecidedMarch 26, 2025
Docket1:24-cv-00078
StatusUnknown

This text of Ward v. Pepperidge Farm, Inc. (Ward v. Pepperidge Farm, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ward v. Pepperidge Farm, Inc., (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK VERONIKA WARD, individually and on behalf of all others similarly situated, Plaintiff, 1:24-cv-00078 (ALC) -against-

OPINION & ORDER PEPPERIDGE FARM, INC., Defendant. ANDREW L. CARTER, JR., United States District Judge: Plaintiff Veronika Ward brings this putative class action against food manufacturer Pepperidge Farm, Inc., alleging that Pepperidge Farm participated in deceptive business practices and false advertising of its “Goldfish Flavor Blasted Baked Snack Crackers.” Plaintiff Ward argues that the statement on the label, “No Artificial Flavors or Preservatives,” is materially misleading given the presence of citric acid in the product. Pepperidge Farm moves to dismiss the complaint for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). For the reasons discussed below, the motion to dismiss is DENIED. BACKGROUND I. Factual History Plaintiff Veronika Ward (“Plaintiff” or “Ward”) is a citizen and resident of New York, New York. ECF No. 1 ¶ 7 (“Compl.”). Defendant Pepperidge Farm, Inc. (“Defendant” or “Pepperidge Farm”) is a corporation organized under the laws of Connecticut with its principal place of business located in Connecticut. Compl. ¶ 57–58. Defendant formulates, advertises, manufactures, and sells Goldfish Flavor Blasted Baked Snack Crackers (“Product”) throughout New York and the entire United States. Compl. ¶ 8. Defendant sells the Product with the statement “No Artificial Flavors or Preservatives” displayed on the packaging. Compl. 4 9. As depicted below, citric acid is one of the ingredients in the Product. Compl. § 9.

| ee “one De WITH SMILES AND ENRICHED WHEAT FLOUR (FLOUR, MAGI DUCED IRM, THIAMINE MONOKPTRATE, RIBOELAVIM, FOLIC Aci jason OEE CLTAED MX SAT, CE, EEA us □ Er YEAST SJQR SOUR CREE (HLT CREAN #0 NLT | | □□ ess GL TON al ‘Go earns PPUIOGE FARM, INC JORWALK, CT 06856 | Contains bioengineari food ingredients, ( MG □□□□□□□□□□□□□□□□□□□□□□□ K i mice is. : ie vomninnone 3608 a Ls 7 aKT) CS i TI Se | CITRIC ACID

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See Compl. § 9. Ward purchased the Product on numerous occasions within the last three years. Compl. § 7. Most recently, Ward purchased the “Xtra Cheddar” flavor of the Product from a Walgreens pharmacy in New York, New York in or around October 2023. Compl. § 7. Ward alleges that the statement “No Artificial Flavors or Preservatives” is misleading because the Product contains citric acid. Compl. § 7. She alleges that she understood “No Artificial Flavors or Preservatives” to mean that “the Product did not contain any artificial preservatives.” Compl. § 7. Ward alleges that citric acid is an artificial preservative. Compl. § 7. If she had known

of the alleged misrepresentation, Ward alleges she would not have purchased the Product or paid so much for it. Compl. ¶ 7. II. Procedural History Plaintiff Ward commenced this action on January 5, 2024. ECF No. 1. The complaint

asserts several causes of action: (1) violations of N.Y. General Business Law (“GBL”) sections 349 and 350; (2) breach of express warranty; and (3) unjust enrichment. Ward seeks certification of the class, injunctive relief, monetary and statutory damages, and attorneys’ fees. Compl. at 15. On May 13, 2024, Defendant moved to dismiss the complaint under Federal Rule of Civil Procedure 12(b)(6). ECF Nos. 15–17. Plaintiff opposed on June 10, 2024. ECF No. 19. Defendant filed a reply on July 8, 2024. ECF No. 22. On October 24 and November 18 of 2024, and March 14 of 2025, Plaintiff filed notices of supplemental authority. ECF Nos. 23, 24, 26. Defendant submitted a notice of supplemental authority on March 14, 2025. ECF No. 25. STANDARD OF REVIEW To survive a motion to dismiss pursuant to Rule 12(b)(6), “a complaint must contain

sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim is facially plausible “when the plaintiff pleads factual content that allows the Court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). The plaintiff must allege sufficient facts to show “more than a sheer possibility that a defendant has acted unlawfully,” and accordingly, where the plaintiff alleges facts that are “‘merely consistent with’ a defendant’s liability, it ‘stops short of the line between possibility and plausibility of entitlement to relief.’” Id. (quoting Twombly, 550 U.S. at 557).

3 In considering a motion to dismiss, the court accepts as true all factual allegations in the complaint and draws all reasonable inferences in the plaintiff’s favor. See Goldstein v. Pataki, 516 F.3d 50, 56 (2d Cir. 2008). However, the court need not credit “[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements.” Iqbal, 556 U.S. at 678 (citing

Twombly, 550 U.S. at 555); see also id. at 681. Instead, the complaint must provide factual allegations sufficient “to give the defendant fair notice of what the claim is and the grounds upon which it rests.” Port Dock & Stone Corp. v. Oldcastle Northeast, Inc., 507 F.3d 117, 121 (2d Cir. 2007) (citing Twombly, 550 U.S. at 555). In addition to the factual allegations in the complaint, the court may consider “the documents attached to the complaint as exhibits, and any documents incorporated in the complaint by reference.” Peter F. Gaito Architecture, LLC v. Simone Dev. Corp., 602 F.3d 57, 64 (2d Cir. 2010) (citation and internal quotation marks omitted). DISCUSSION I. Plaintiff States a Claim for Deceptive Practices Section 349 of the New York General Business Law makes unlawful “[d]eceptive acts or practices in the conduct of any business, trade or commerce or in the furnishing of any service in

this state.” N.Y. Gen. Bus. Law. § 349(a). Section 350 prohibits “[f]alse advertising in the conduct of any business.” N.Y. Gen. Bus. Law § 350. To state a cognizable claim for deceptive practices under either section, a plaintiff must show that the act or practice constitutes “(1) consumer- oriented conduct that is (2) materially misleading and that (3) plaintiff suffered [an] injury as a result of the deceptive act or practice.” Orlander v. Staples, Inc., 802 F.3d 289, 300 (2d Cir. 2015) (citing Koch v. Acker, Merrall & Condit Co., 967 N.E.2d 675, 675 (N.Y. 2012)). “New York courts apply an objective standard in determining whether acts or practices are materially deceptive or misleading: whether the alleged act is likely to mislead a reasonable 4 consumer acting reasonably under the circumstances.” Dwyer v. Allbirds, Inc., 598 F. Supp. 3d 137, 149 (S.D.N.Y. 2022). “To survive a motion to dismiss, a plaintiff must do more than plausibly allege that a label might conceivably be misunderstood by some few consumers.” Id.

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