Warren v. I-Health, Inc.

District Court, E.D. California·Decided October 1, 2024·No. 2:23-cv-01926·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 | Ethel Warren & Christian Campos, individually | No. 2:23-cv-01926-KJM-AC and on behalf of all others similarly situated, 12 ORDER B Plaintiffs, 14 v: 15 I-Health, Inc., 16 Defendant. 17 18 Defendant I-Health moves to dismiss plaintiffs Ethel Warren and Christian Campos’s 19 | putative class action complaint based on alleged product misbranding, arguing plaintiffs lack 20 | constitutional and statutory standing, their claims are preempted by federal law and the complaint 21 | fails to state a claim for relief. Plaintiffs have opposed, and I-Health has replied. The court 22 | grants the motion to dismiss with prejudice. 23 | I. BACKGROUND 24 Plaintiffs’ allegations concern two Products sold by defendant: Culturelle Probiotics 25 | Ultimate Balance for Antibiotics and Culturelle Kids Probiotics Ultimate Balance for Antibiotics 26 | (“Products”). See Mot. at 1, ECF No. 14; see generally Compl., ECF No. 1. Plaintiffs base their 27 | claims on California’s Unfair Competition Law (“UCL”), California’s False Advertising Law 28 | (“FAL”), California’s Consumer Legal Remedies Act (“CLRA”), Breach of Express Warranties

1 and Breach of Implied Warranty of Merchantability. See Compl. ¶¶ 65–103. Specifically, 2 plaintiffs claim, “Defendant represents on its packaging that the Products ‘Rebuild[] Bacterial 3 Balance Lost to Antibiotic Use,’ explicitly or implicitly claiming the Products are intended to be 4 used as a drug to treat diseases like infections caused by antibiotics.” Compl. ¶ 22. The 5 description on the front of the box that the Products “Rebuild[] Bacterial Balance Lost to 6 Antibiotic Use” includes an asterisk at the end. Mot. at 2.1 The back of the box provides 7 information marked with an asterisk, qualifying the front label description by explaining, in large 8 capital letters and framed by a solid border, “*THESE STATEMENTS HAVE NOT BEEN 9 EVALUATED BY THE FOOD AND DRUG ADMINISTRATION. THIS PRODUCT IS NOT 10 INTENDED TO DIAGNOSE, TREAT, CURE OR PREVENT ANY DISEASE.” Id. at 2. 11 Defendant points out that, on its face, this language on the back of the package tracks statutory 12 disclaimer language required for dietary supplements that do not need pre-approval from the 13 federal agency. See 21 U.S.C. § 343(r)(6)(C) (“[A] statement for a dietary supplement may be 14 made if . . . the statement contains, prominently displayed and in boldface type” that “This 15 statement has not been evaluated by the Food and Drug Administration. This product is not 16 intended to diagnose, treat, cure, or prevent any disease.”). Plaintiffs allege that the product 17 descriptions are “illegal implied disease claims” that “are deceptive and violate federal 18 regulations” because the claims preclude the defendant’s ability to rely on the regulations’ 19 provisions for structure/function claims as opposed to the more stringent regulations applicable to 20 disease claims. Compl. ¶¶ 20-22. Plaintiffs further allege they “would not have purchased the 21 Products had they known the Products were unlawfully being mark[et]ed to mitigate, prevent, or

1 Defendant includes with its motion a request for judicial notice of several product labels as well as a warning letter from the U.S. Food and Drug Administration. See Req., ECF No. 14- 3. The request is unopposed. A court shall take judicial notice if requested by a party and supplied with the necessary information. Fed. R. Evid. 201(c)(2). Judicially noticed facts often consist of matters of public record. See, e.g., Emrich v. Touche Ross & Co., 846 F.2d 1190, 1198 (9th Cir. 1988). Additionally, under the “incorporation by reference” doctrine, the court may take into account documents “whose contents are alleged in a complaint and whose authenticity no party questions, but which are not physically attached to the [plaintiff’s] pleading.” Knievel v. ESPN, 393 F.3d 1068, 1076 (9th Cir. 2005) (citation and marks omitted). Accordingly, the court grants defendant’s request as to the product labels under the incorporation by reference doctrine and as to the Food and Drug Administration’s warning letter under the public records exception. 1 treat certain diseases.” Id. ¶¶ 30, 42, 51. They say they paid a “premium price” for the Products 2 and “suffered injury in fact and lost money.” Id. ¶¶ 37, 43, 46, 52. 3 The complaint also alleges Warren and Campos “purchased the Products for” their 4 “personal use on various occasions within the applicable statute of limitations,” and “[a]lthough 5 the Products were more expensive than other choices [they] viewed, [plaintiffs] chose to pay the 6 premium price based upon the various claims and promises made by Defendant.” Id. ¶¶ 36–37, 7 45–46. Plaintiffs each allege they were “exposed to, saw, and relied upon Defendant’s materially 8 misleading misrepresentations on the Products’ label and online which, viewed in their totality, 9 implicitly or explicitly claim to mitigate and prevent disease.” Id. ¶¶ 38, 47. Plaintiffs also allege 10 if they had “known the truth about Defendant’s materially misleading representations and 11 omissions, [they] would not have purchased the Products.” Id. ¶¶ 42, 51. 12 Defendant argues the product description at issue is not a disease claim requiring advance 13 FDA approval, but rather a permissible structure-function claim and that federal law preempts 14 plaintiffs’ claims. Mot. at 4–18; see 21 C.F.R. § 101.93(f). 15 Defendant’s motion is fully briefed. See Mot.; Opp’n, ECF No. 16; Reply, ECF No. 19. 16 Defendant submitted a notice of supplemental authority, which the court has reviewed. See 17 Notice, ECF No. 30; Suppl. Authority, Notice Ex. A, ECF No. 30-1. The court submitted the 18 motion without a hearing. See Min. Order, ECF No. 22. 19 II. LEGAL STANDARD 20 A. Rule 12(b)(1) 21 Standing is a threshold component of the court’s subject matter jurisdiction; if a plaintiff 22 lacks standing, the court lacks jurisdiction. See Cetacean Cmty. v. Bush, 386 F.3d 1169, 1174 23 (9th Cir. 2004); Fed. R. Civ. P. 12(b)(1). Lack of standing is “properly raised in a motion to 24 dismiss under Federal Rule of Civil Procedure 12(b)(1)[.]” White v. Lee, 227 F.3d 1214, 1242 25 (9th Cir. 2000). A plaintiff possesses Article III standing only if he or she has “(1) suffered an 26 injury in fact, (2) that is fairly traceable to the challenged conduct of the defendant, and (3) that is 27 likely to be redressed by a favorable judicial decision.” Spokeo, Inc. v. Robins, 578 U.S. 330, 339 28 (2016) (citing Lujan v. Defs. of Wildlife, 504 U.S. 555, 560–61 (1992)). To establish an injury in 1 fact, the plaintiff must show the defendant infringed on the plaintiff’s legally protected interest in 2 a “concrete and particularized” manner that is “actual or imminent, not conjectural or 3 hypothetical.” Lujan, 504 U.S.

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