Warren v. I-Health, Inc.

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

Opinion

| Ethel Warren & Christian Campos, individually | No. 2:23-cv-01926-KJM-AC and on behalf of all others similarly situated, B Plaintiffs, v: I-Health, Inc., Defendant. Defendant I-Health moves to dismiss plaintiffs Ethel Warren and Christian Campos’s putative class action complaint based on alleged product misbranding, arguing plaintiffs lack constitutional and statutory standing, their claims are preempted by federal law and the complaint fails to state a claim for relief. Plaintiffs have opposed, and I-Health has replied. The court grants the motion to dismiss with prejudice. I. BACKGROUND Plaintiffs’ allegations concern two Products sold by defendant: Culturelle Probiotics Ultimate Balance for Antibiotics and Culturelle Kids Probiotics Ultimate Balance for Antibiotics (“Products”). See Mot. at 1, ECF No. 14; see generally Compl., ECF No. 1. Plaintiffs base their claims on California’s Unfair Competition Law (“UCL”), California’s False Advertising Law (“FAL”), California’s Consumer Legal Remedies Act (“CLRA”), Breach of Express Warranties

and Breach of Implied Warranty of Merchantability. See Compl. ¶¶ 65–103. Specifically, plaintiffs claim, “Defendant represents on its packaging that the Products ‘Rebuild[] Bacterial Balance Lost to Antibiotic Use,’ explicitly or implicitly claiming the Products are intended to be used as a drug to treat diseases like infections caused by antibiotics.” Compl. ¶ 22. The description on the front of the box that the Products “Rebuild[] Bacterial Balance Lost to Antibiotic Use” includes an asterisk at the end. Mot. at 2.1 The back of the box provides information marked with an asterisk, qualifying the front label description by explaining, in large capital letters and framed by a solid border, “*THESE STATEMENTS HAVE NOT BEEN EVALUATED BY THE FOOD AND DRUG ADMINISTRATION. THIS PRODUCT IS NOT INTENDED TO DIAGNOSE, TREAT, CURE OR PREVENT ANY DISEASE.” Id. at 2. Defendant points out that, on its face, this language on the back of the package tracks statutory disclaimer language required for dietary supplements that do not need pre-approval from the federal agency. See 21 U.S.C. § 343(r)(6)(C) (“[A] statement for a dietary supplement may be made if . . . the statement contains, prominently displayed and in boldface type” that “This statement has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.”). Plaintiffs allege that the product descriptions are “illegal implied disease claims” that “are deceptive and violate federal regulations” because the claims preclude the defendant’s ability to rely on the regulations’ provisions for structure/function claims as opposed to the more stringent regulations applicable to disease claims. Compl. ¶¶ 20-22. Plaintiffs further allege they “would not have purchased the 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. treat certain diseases.” Id. ¶¶ 30, 42, 51. They say they paid a “premium price” for the Products and “suffered injury in fact and lost money.” Id. ¶¶ 37, 43, 46, 52. The complaint also alleges Warren and Campos “purchased the Products for” their “personal use on various occasions within the applicable statute of limitations,” and “[a]lthough the Products were more expensive than other choices [they] viewed, [plaintiffs] chose to pay the premium price based upon the various claims and promises made by Defendant.” Id. ¶¶ 36–37, 45–46. Plaintiffs each allege they were “exposed to, saw, and relied upon Defendant’s materially misleading misrepresentations on the Products’ label and online which, viewed in their totality, implicitly or explicitly claim to mitigate and prevent disease.” Id. ¶¶ 38, 47. Plaintiffs also allege if they had “known the truth about Defendant’s materially misleading representations and omissions, [they] would not have purchased the Products.” Id. ¶¶ 42, 51. Defendant argues the product description at issue is not a disease claim requiring advance FDA approval, but rather a permissible structure-function claim and that federal law preempts plaintiffs’ claims. Mot. at 4–18; see 21 C.F.R. § 101.93(f). Defendant’s motion is fully briefed. See Mot.; Opp’n, ECF No. 16; Reply, ECF No. 19. Defendant submitted a notice of supplemental authority, which the court has reviewed. See Notice, ECF No. 30; Suppl. Authority, Notice Ex. A, ECF No. 30-1. The court submitted the motion without a hearing. See Min. Order, ECF No. 22. A. Rule 12(b)(1) Standing is a threshold component of the court’s subject matter jurisdiction; if a plaintiff lacks standing, the court lacks jurisdiction. See Cetacean Cmty. v. Bush, 386 F.3d 1169, 1174 (9th Cir. 2004); Fed. R. Civ. P. 12(b)(1). Lack of standing is “properly raised in a motion to dismiss under Federal Rule of Civil Procedure 12(b)(1)[.]” White v. Lee, 227 F.3d 1214, 1242 (9th Cir. 2000). A plaintiff possesses Article III standing only if he or she has “(1) suffered an injury in fact, (2) that is fairly traceable to the challenged conduct of the defendant, and (3) that is likely to be redressed by a favorable judicial decision.” Spokeo, Inc. v. Robins, 578 U.S. 330, 339 (2016) (citing Lujan v. Defs. of Wildlife, 504 U.S. 555, 560–61 (1992)). To establish an injury in fact, the plaintiff must show the defendant infringed on the plaintiff’s legally protected interest in a “concrete and particularized” manner that is “actual or imminent, not conjectural or hypothetical.” Lujan, 504 U.S. at 560 (citations and marks omitted). “A ‘concrete’ injury must be ‘de facto’; that is, it must actually exist.” Spokeo, 136 S. Ct. at 1548 (alteration omitted) (citing Black’s Law Dictionary 479 (9th ed. 2009)). The standing requirements for UCL and FAL claims are identical: a private citizen must have “suffered injury in fact and . . . lost money or p

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