A federal court in California has entered an order certifying a class in consolidated lawsuits alleging that the company which produces Nutella® falsely advertises its product as healthy and beneficial to children despite making the hazelnut spread with “dangerous levels of fat and sugar.” In re Ferrero Litig., No. 11-205 (S.D. Cal., decided November 15, 2011). The court limited the class to California consumers, agreeing with the defendant that California law could not be applied to the claims of non-California class members who neither saw the advertisements nor purchased the product in the state. Because the defendant is a Delaware corporation that does business from its New Jersey headquarters and the product is made in Canada, the non-California class members would also have been unable to show that their claims arose out of conduct that occurred in California. The court refused to certify an 11-year class, noting that nationwide TV ads for…
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A federal court in New Jersey has refused the request to intervene filed by plaintiffs to a California consumer-fraud lawsuit against the company that makes the hazelnut spread Nutella®. Glover v. Ferrero USA, Inc., No. 11-1086 (D.N.J., decided October 20, 2011) (unpublished). The New Jersey action, like its California counterpart, was filed as a putative nationwide class action; the laws under which the cases were filed and the class periods differ. According to the New Jersey court, the intervenors had no interest in litigating the New Jersey case; rather, their stated intent was to dismiss the case or transfer it to California. The court also noted that while the California Nutella® litigation was filed first, “the actions are not truly duplicative.” The Judicial Panel on Multidistrict Litigation has refused to consolidate the California and New Jersey actions for pretrial proceedings.
A federal court in California has denied the defendant’s motion to dismiss the plaintiffs’ first amended consolidated complaint in a case involving claims that “Ferrero misleadingly promotes Nutella® spread as healthy and beneficial to children when in fact it contains dangerous levels of fat and sugar.” In re: Ferrero Litig., No. 11-205 (S.D. Cal., decided August 29, 2011). According to the court, the plaintiffs sufficiently pleaded exposure to a long-term advertising campaign and reliance on the campaign in making their purchasing decisions to confer standing on them to bring their claims under California’s Unfair Competition Law, False Advertising Law and Consumers Legal Remedies Act.
The Judicial Panel on Multidistrict Litigation (JPML) has denied a request to transfer three actions pending in two federal district courts alleging that Ferrero U.S.A., Inc. misrepresented its Nutella® spread as a healthy and nutritious food. In re: Nutella Mktg. & Sales Practices Litig., MDL No. 2248 (JPML, decided August 16, 2011). While the parties agreed to centralize the cases for purposes of conducting pre-trial proceedings, they could not agree on whether California or New Jersey would be the appropriate transferee court. Denying the request to transfer, the JPML stated, “The actions may share some factual questions regarding the common defendant’s marketing practices, but these questions do not appear complicated. Indeed, the parties have not convinced us that any common factual questions are sufficiently complex or numerous to justify Section 1407 transfer at this time.” The JPML opined that “[c]ooperation among the parties and deference among the courts should minimize…
A multidistrict litigation court in Missouri has denied motions for class certification in 24 transferred cases against companies that make baby bottles and sippy cups allegedly containing bisphenol A (BPA). In re: Bisphenol-A (BPA) Polycarbonate Plastic Prods. Liab. Litig., MDL No. 1967 (W.D. Mo., decided July 5, 2011). The plaintiffs sought to certify various classes, including individual state classes and multi state classes as to certain claims and defendants. The court focused on the commonality, predominance and superiority prongs of class certification to conclude that differences in state laws and facts unique to each putative class member rendered the claims unsuitable for class treatment. Still, the court dismissed the requests to certify individual statewide classes without prejudice, finding it appropriate to allow the transferor courts to determine whether these classes met the certification requirements when the cases are returned to their jurisdictions. The court also indicated that it would delay remand…
A federal court in California has denied without prejudice the motion of Ferrero U.S.A., Inc. to transfer a consolidated consumer-fraud class action involving its Nutella® spread to a New Jersey district court. In re: Ferrero Litig., No. 11-205 (S.D. Cal., decided May 11, 2011). According to the court, the convenience of the parties and witnesses and the interests of justice would best be served by allowing the plaintiffs to remain in their chosen jurisdiction. The court noted that similar litigation is pending in New Jersey, but that case was filed after the California lawsuits, “likely giv[ing] the cases in this district priority.” Additional details about the case can be found in Issue 380 of this Update.
A California resident who purportedly bought the hazelnut spread Nutella® to provide a nutritious snack or breakfast for her 4-year-old daughter has filed a putative class action against its manufacturer alleging violations of consumer protection laws. Hohenberg v. Ferrero U.S.A., Inc., No. 11-0205 (S.D. Cal., filed February 1, 2011). Seeking to represent a nationwide class of consumers who purchased the product since 2000, Athena Hohenberg claims that she relied on the company’s product advertisements and representations that Nutella® is a “healthy breakfast” and “nutritious.” According to the complaint, she did not learn until December 2010 “through friends what ingredients were in the Nutella® that she was feeding her family. She was shocked to learn that Nutella® was in fact not a ‘healthy’ ‘nutritious’ food but instead was the next best thing to a candy bar,” containing “about 70% saturated fat and processed sugar by weight.” Characterizing herself as a “reasonably…
