Court Refuses to Dismiss Consumer Fraud Claims Against Smart Balance® Butter Maker

A federal court in California has denied the defendant’s motion to dismiss
a putative class action alleging that the company misleads consumers by
claiming that its Smart Balance® butter products contain plant sterols that can
block the absorption of cholesterol; according to the plaintiff, a single serving
of the product contains insufficient sterols to achieve the stated benefit.
Aguilar v. Boulder Brands, Inc., No. 12-1862 (S.D. Cal., order entered
June 10, 2013).

Among other matters, the court determined that the named plaintiff had
standing to assert claims involving two products that she did not purchase,
because the products “advertise the same health benefits arising from the
same additional ingredients found on the label in the same position” as the
product she did purchase. According to the court, her ability to represent
class members allegedly injured by similar products must be analyzed under
Rule 23 and not on a motion to dismiss. The court also found that the plaintiff
had sufficiently pleaded fraud, misrepresentation, violations of the Unfair
Competition Law and Consumers Legal Remedies Act, and breach of express
warranty.

Issue 488