Appeals Court Reverses Dismissal of Whole Foods Overcharging Suit

The U.S. Court of Appeals for the Second Circuit has reversed a
lower court’s dismissal of a proposed class action alleging Whole
Foods Market Group, Inc. overcharges for prepackaged foods.
John v. Whole Foods Mkt. Grp., Inc., No. 16-­0986 (2nd Cir., order
entered June 2, 2017). The plaintiff alleged that he routinely
purchased prepackaged foods at two Whole Foods stores in
Manhattan but learned that a New York City Department of
Consumer Affairs (DCA) investigation had found systematic
overcharging for some foods. Details on the lower court’s
dismissal appear in Issue 596 of this Update.

The Second Circuit held that the lower court dismissed the case
prematurely because the plaintiff did not need to prove the
accuracy of the DCA report or defend its methodology at the
pleading stage; he was required only to plausibly allege that he
overpaid for at least one product, which satisfies the “low
threshold” required to plead injury in fact to establish standing.
Accordingly, the appeals court reversed the decision and
remanded the case to the trial court.

Issue 637