Zahora v. Orgain, LLC

CourtDistrict Court, N.D. Illinois
DecidedNovember 4, 2021
Docket1:21-cv-00705
StatusUnknown

This text of Zahora v. Orgain, LLC (Zahora v. Orgain, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zahora v. Orgain, LLC, (N.D. Ill. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

) MELISSA ZAHORA, individually and on ) behalf of all others similarly situated, )

) Plaintiff, ) No. 21 C 705

) v. ) Judge Virginia M. Kendall

) ORGAIN LLC, ) Defendant. ) )

MEMORANDUM OPINION AND ORDER Plaintiff Melissa Zahora brings this action against Defendant Orgain LLC (“Orgain”). The Complaint alleges various claims in connection with allegedly deceptive labeling on a vanilla shake container. (Dkt. 17). Specifically, Zahora bring claims for: violation of the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”), 815 ILCS 505/1, et seq. (Count I); breach of express and implied warranties (Count II);1 negligent misrepresentation (Count III); common law fraud (Count IV); and unjust enrichment (Count V). (Id.). Orgain now moves for dismissal of Plaintiff’s First Amended Complaint in its entirety. (Dkt. 21). For the reasons set forth below, the Defendant’s motion [21] is granted. BACKGROUND On a motion to dismiss under Rule 12(b)(6), the Court accepts the complaint’s well- pleaded factual allegations, with all reasonable inferences drawn in the non-moving party’s favor,

1 The Complaint also contains a claim for breach of the Magnuson Moss Warranty Act, 15 U.S.C. §§ 2301, et seq. under Count II, which Plaintiff voluntarily dismissed in her Opposition to Defendant’s Motion to Dismiss. (Dkt. 25 at 8 n.2 (“Plaintiff withdraws her claims based on the Magnusson-Moss Warranty Act[.]”)). but not its legal conclusions. See Smoke Shop, LLC v. United States, 761 F.3d 779, 785 (7th Cir. 2014). The following factual allegations are taken from Zahora’s First Amended Complaint, (Dkt. 17), and are assumed true for purposes of this motion. W. Bend Mut. Ins. Co. v. Schumacher, 844 F.3d 670, 675 (7th Cir. 2016). Defendant Orgain is a company that manufactures, labels, markets, and sells vegan protein shakes purportedly flavored by vanilla beans under the Orgain brand (the “Product”). (Dkt. 17 4 1, 68). However, Plaintiff alleges that Orgain’s representation that its Product has a vanilla bean flavor is misleading, because the Product contains a negligible amount of authentic vanilla — and instead is flavored by synthetic vanilla flavoring. (Ud. J§ 25-27 (“[T]esting of the Product confirmed the Product’s ‘vanilla’ flavor is not from vanilla beans but artificial flavor.”), 36-38 (“[L]aboratory analysis detected guaiacol at atypically elevated levels . . . . [and] detection of high levels of guaiacol is a ‘fingerprint’ of artificial vanilla.”)). In particular, Zahora challenges the labeling of the Product as pictured below. Exhibit A: Product’s Front Label?

Orgain = Organic Ms Nutrition’... ner lt

Exhibit A presents two images of the Product’s front label. The image on the left shows the Product’s entire front label. The image on the right isolates the portion of the front label at issue in this case, which reads “Vanilla Bean Flavor” above a vanilla flower and two cured, or processed, vanilla beans. (Dkt. 17 4 16).

Exhibit B: Product’s Ingredient List* INGREDIENTS: FILTERED WATER, ORGAIN ORGANIC PROTEIN BLEND™ eae PEA PROTEIN, ORGANIC CHIA ray ORGANIC RICE DEXTRINS, RGANIC CANE SUGAR, ORGANIC NATURAL FLAVORS, ORGANIC HIGH OLEIC SUNFLOWER OIL, ORGANIC INULIN, ORGAIN VITAMIN & MINERAL BLEND™ et ASCORBATE, MAGNESIUM SULFATE, ZINC GLUCONATE, DL-ALPHA OCOPHERYL ACETATE, NIACINAMIDE, VITAMIN A PALMITATE, POTASSIUM, IODIDE, COPPER GLUCONATE, BIOTIN, CALCIUM D-PANTOTHENATE, CYANOCOBALAMIN, ERGOCALCIFEROL, FOLIC ACID, THIAMINE HYDROCHLORIDE, PYRIDOXINE HYDROCHLORIDE, Peay ORGANIC RICE BRAN EXTRACT, TRICALCIUM PHOSPHATE, TRISODIUM PHOSPHATE, TRIPOTASSIUM CITRATE, GELLAN GUM, POTASSIUM CHLORIDE, ORGAIN ORGANIC FRUIT BLEND™ Oe i ORGANIC APPLE, ORGANIC BANANA, ORGANIC BLUEBERRY, ORGANIC ORGAIN ORGANIC VEGGIE ORGANIC SPINACH, ORGANIC BEET, ORGANIC CARROT, ORGANIC KALE), NATURAL FLAVOR Zahora alleges that based on this packaging — namely the phrase “Vanilla Bean Flavor” — she “expected most of the flavor would come from vanilla beans and none would come from artificial flavors.” (Ud. 73). She explains that consumers specifically seek out and pay a premium for food products with natural flavors, which the Product suggests it contains. (/d. § 50). She maintains that she “would not have purchased the Product if she knew the [flavor] representations were false and misleading.” (/d. § 75). Based on these allegations, Zahora brings this putative class action complaint against Orgain. Zahora brings five claims under Illinois law: (1) violation of the ICFA (Count I); (2) breach of express and implied warranties (Count II); (3) negligent misrepresentation (Count ITI); (4) common law fraud (Count IV); and (5) unjust enrichment (Count V). Zahora seeks both injunctive relief and money damages. (/d. at 16). Orgain moved to dismiss the First Amended Complaint in its entirety.

3 Exhibit B presents a list of ingredients contained in the Product at issue. The list reads as follows: Filtered Water, Orgain Organic Protein Blend (Organic Pea Protein, Organic Chia Seeds), Organic Rice Dextrins, Organic Cane Sugar, Organic Natural Flavors, Organic High Oleic Sunflower Oil, Organic Inulin, Orgain Vitamin & Mineral Blend (Sodium Ascorbate, Magnesium Sulfate, Zinc Gluconate, Dl-Alpha Tocopheryl Acetate, Niacinamide, Vitamin A Palmitate, Potassium, Iodide, Copper Gluconate, Biotin, Calcium D-Pantothenate, Cyanocobalamin, Ergocalciferol, Folic Acid, Thiamine Hydrochloride, Pyridoxine Hydrochloride, Riboflavin), Organic Rice Bran Extract, Tricalctum Phosphate, Trisodium Phosphate, Tripotassium Citrate, Gellan Gum, Potassium Chloride, Orgain Organic Fruit Blend (Organic Acai, Organic Apple, Organic Banana, Organic Blueberry, Organic Raspberry), Orgain Organic Veggie Blend (Organic Tomato, Organic Spinach, Organic Beet, Organic Carrot, Organic Kale), Natural Flavor. (Dkt 21-2; see also Dkt. 17 § 20).

LEGAL STANDARD “To survive a motion to dismiss under 12(b)(6), a complaint must ‘state a claim to relief that is plausible on its face.’ ” Adams v. City of Indianapolis, 742 F.3d 720, 728 (7th Cir. 2014) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility

when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Adams, 742 F.3d at 728 (quoting Ashcroft v. Iqbal, 566 U.S. 662, 678 (2009)). “[I]t is not enough for a complaint to avoid foreclosing possible bases for relief; it must actually suggest that the plaintiff has a right to relief . . . by providing allegations that ‘raise a right to relief above the speculative level.’ ” E.E.O.C. v. Concentra Health Servs., Inc., 496 F.3d 773, 777 (7th Cir. 2007) (citing Twombly, 550 U.S. at 555) (emphasis in original). The Court construes the complaint “in the light most favorable to the nonmoving party, accept[s] well-pleaded facts as true, and draw[s] all inferences in her favor.” Reynolds v. CB Sports Bar, Inc., 623 F.3d 1143, 1146 (7th Cir. 2010). “[L]egal conclusions and conclusory allegations merely reciting the elements of the claim are not entitled to this presumption of truth.” McCauley

v.

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