KENNETH M. KARAS, District Judge:
Plaintiffs Jennifer O'Neill ("O'Neill") and Tricia Zamfino ("Zamfino") bring the instant Complaint, on their own behalf and on behalf of a putative class, alleging that they were injured by paying for unsafe products that have since been voluntarily removed from the marketplace by Defendants Standard Homeopathic Company ("Standard") and Hyland's, Inc. ("Hyland's"), and which are no longer available for purchase at Defendants Target Corporation ("Target") or CVS Pharmacy, Inc. ("CVS") (collectively "Defendants"). (Am. Compl. ¶¶ 1-3 (Dkt. No. 20).) According to Plaintiffs, Defendants "made false representations about their teething products," that were in violation of New York General Business Law ("GBL") §§ 349 and 350, and also resulted in a breach of the implied warranty of merchantability and a breach of contract. (Id. ¶¶ 53-76.) Defendants have filed a Motion To Dismiss Plaintiffs' Amended Complaint. (See Defs.' Mot. To Dismiss Am. Compl. (Dkt. No. 59).) For the following reasons, Defendants' Motion is granted in part and denied in part.
For purposes of the instant Motion, the Court treats the allegations contained in the Amended Complaint as true. Plaintiff O'Neill purchased Hyland's Baby Teething Tablets on an unspecified date at Target in Newburgh, New York. (Am. Compl. ¶ 4.) Plaintiff Zamfino purchased the same product at CVS in Middletown, New York. (Id. ¶ 5.) O'Neill discarded a full, unused container of Hyland's Baby Teething Tablets in the wake of the Food and Drug Administration's (the "FDA") warning regarding the safety of the product in September 2016, (id. ¶ 4), while Zamfino discarded a full, unused container, as well as a half-filled container, of the same, (id. ¶ 5).
Standard, through its Hyland's division, sold various homeopathic medicines under the brand name of "Hyland's." (Id. ¶ 7.) As is relevant here, Standard sold Hyland's Baby Nighttime Teething Tablets, Hyland's Baby Teething Gel, Hyland's Baby Teething Tablets, and Hyland's Teething Gel at various retailers, including Target and CVS. (Id. ¶¶ 14, 18.) According to Plaintiffs, Standard marketed the specific product purchased by O'Neill and Zamfino
However, in 2010, the FDA issued a warning that Hyland's Teething Tablets may pose a risk to children, recommended that "consumers not use this product and dispose of any in their possession," (id. ¶ 19 (internal quotation marks omitted)), and announced that Hyland's would be issuing a recall of the product, (id. ¶ 20). According to Plaintiffs, the FDA warning concerned the existence of "a small amount of belladonna, a substance that can cause serious harm at larger doses," in the Hyland's Teething Tablets. (Id. ¶ 21.) Plaintiffs allege that the FDA's laboratory analysis showed that the belladonna was not "carefully controlled," as the Hyland's Teething Tablets were shown to "contain inconsistent amounts of belladonna." (Id.) Moreover, the FDA had "received reports of serious adverse events in children taking this product that [were] consistent with belladonna toxicity." (Id.) Ultimately, Hyland's agreed to recall the Teething Tablets in 2010 out of "an abundance of caution," although it contended that the Teething Tablets were "safe for infants and toddlers." (Id. ¶ 22-23 (internal quotation marks omitted).) Yet, in 2011, Hyland's reintroduced the Teething Tablets to the market, "stating it had modified its manufacturing process, and ... claiming its products were safe." (Id. ¶ 24.)
Approximately four years later, in September 2015, USA Today published an article wherein the mother of an infant in Texas alleged that her child "was having five to six seizures a day after [the child] started taking Hyland's Baby Nighttime Teething Tablets." (Id. ¶ 25.) According to the article, "an ingredient in Hyland's homeopathic teething tablets had earlier been linked to seizures." (Id. ¶ 27.)
Roughly one year after the USA Today report, the FDA issued a new warning to consumers regarding certain homeopathic remedies. Specifically, the FDA stated that "homeopathic teething tablets and gels may pose a risk to infants and children," and further recommended that "consumers stop using these products and dispose of any in their possession." (Id. ¶ 29 (internal quotation marks omitted).) According to the FDA, these products had been linked to "adverse events ... including seizures in infants and children who were given these products." (Id. ¶ 30 (internal quotation marks omitted).) The FDA also confirmed that homeopathic teething tablets and gels had "not been evaluated or approved by the FDA for safety or efficacy," in direct contrast to representations allegedly made by Defendants. (Id. ¶ 31 (emphasis and internal quotation marks omitted).)
In response, Hyland's maintained that it was "confident that Hyland's Baby Teething Tablets remain safe," and that the FDA's warning came as "a surprise statement." (Id. ¶ 33 (internal quotation marks omitted).) Hyland's also confirmed that its homeopathic products were in fact regulated by the FDA, which placed it in direct
Then, on January 27, 2017, the FDA issued another warning regarding homeopathic teething tablets. (Id. ¶ 37.) At this time, the FDA "indicated that it asked Standard to recall its teething tablets containing belladonna." (Id.) The FDA's January 2017 warning confirmed that a "laboratory analysis found inconsistent amounts of belladonna ... in certain homeopathic teething tablets, sometimes far exceeding the amount claimed on the label." (Id. ¶ 38 (internal quotation marks omitted).) Due to these findings, the FDA "contact[ed] Standard directly and ask[ed] Standard to recall its homeopathic teething tablets in order to protect consumers from inconsistent levels of belladonna." (Id. ¶ 40 (internal quotation marks omitted).) At the time the Amended Complaint was filed, Standard had not yet recalled the relevant products. (Id. ¶ 41.) However, on April 13, 2017, Standard announced that it was recalling all Hyland's Baby Teething Tablets and Hyland's Baby Nighttime Teething Tablets sold in retail stores to consumers. (See Decl. of Judith A. Archer, Esq. in Supp. of Mot. To Dismiss ("Archer Decl.") Ex. B ("Recall Announcement") (Dkt. No. 61).)
Prior to Standard initiating the aforementioned recall, Defendants CVS and Target removed the Hyland's teething products from their stores. (Am. Compl. ¶ 42.) Specifically, on September 30, 2016, CVS announced that it had "voluntarily withdrawn all brands of homeopathic teething products sold in its retail stores and online at CVS.com," and that it had initiated certain in-store controls to "prevent further sale of these products." (Id. ¶ 43 (internal quotation marks omitted).) Target did not make an announcement regarding the homeopathic teething products, but it did "pull[ ] the products from its shelves and stopped making the products available on [its] website." (Id. ¶ 44.) Neither Target nor CVS offered any "refund, rebate, discount, or other form of
Plaintiffs filed their initial Complaint on November 9, 2016. (Dkt. No. 1.) On February 2, 2017, Defendants filed a pre-motion letter seeking to file a motion to dismiss the Complaint. (Dkt. No. 42.) In response to the pre-motion letter, Plaintiffs filed an Amended Complaint on February 3, 2017, (Am. Compl. (Dkt. No. 44)), and agreed to dismiss claims brought by former-Plaintiffs Lisa Corbett and Laura Kasiotis against former-Defendant Church & Dwight Co., Inc. and Defendants CVS and Target, (Dkt. No. 46). Plaintiffs then filed a letter in response to Defendants' pre-motion letter on February 7, 2017. (Dkt. No. 47.) The Court thereafter adopted a briefing schedule for Defendants' Motion. (Dkt. No. 50.)
In the interim, the Court referred this case to Magistrate Judge McCarthy for purposes of settlement. (Dkt. No. 52.) On June 13, 2017, in an attempt to facilitate settlement of this action, the Parties proposed a revised briefing schedule extending the deadline to file the putative Motion To Dismiss. (Dkt. No. 56.) The Court then adopted this revised schedule. (Dkt. No. 57.) Unable to settle the case, Defendants filed their Motion To Dismiss and accompanying papers, dated July 15, 2017, on September 15, 2017. (Dkt. Nos. 59-61.) Plaintiffs filed their Opposition to the Defendants' Motion, dated August 18, 2017, that same day, (Dkt. No. 62), and Defendants filed their Reply, on September 15, 2017 as well, (Dkt. No. 63).
Defendants move to dismiss Plaintiffs' Amended Complaint pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). (See Mem. of Law in Supp. of Defs.' Mot. To Dismiss ("Defs.' Mem.") 7 (Dkt. No. 65).)
"The standards of review for a motion to dismiss under Rule 12(b)(1) for lack of subject matter jurisdiction and under 12(b)(6) for failure to state a claim are substantively identical. In deciding both types of motions, the Court must accept all factual allegations in the complaint as true, and draw inferences from those allegations in the light most favorable to the plaintiff." McCray v. Lee, 2017 WL 2275024, at *2 (S.D.N.Y. May 24, 2017) (citations and internal quotation marks omitted); see also Lerner v. Fleet Bank, N.A., 318 F.3d 113, 128 (2d Cir. 2003), as amended (Apr. 16, 2003) ("[T]he standards for dismissal under 12(b)(6) and 12(b)(1) are substantively identical."). However, "in contrast to the standard for a motion to dismiss for failure to state a claim under Rule 12(b)(6), a plaintiff asserting subject matter jurisdiction has the burden of proving by a preponderance of the evidence that it exists." Sobel v. Prudenti, 25 F.Supp.3d 340, 352 (E.D.N.Y. 2014) (internal quotation marks omitted); see also McCray, 2017 WL 2275024, at *2 ("[O]n a Rule 12(b)(1) motion, the party who invokes the Court's jurisdiction bears the burden of proof to demonstrate that subject matter jurisdiction exists, whereas the movant bears the burden of proof on a motion to dismiss under Rule 12(b)(6)" (alterations and internal quotation marks omitted)). This allocation of "the burden of proof" is "[t]he only substantive difference" between the standards of review under these two rules. Fagan v. U.S. Dist. Court for S. Dist. Of N.Y., 644 F.Supp.2d 441, 446-47 & n.7 (S.D.N.Y. 2009) (quoting Lerner, 318 F.3d at 128).
"A federal court has subject matter jurisdiction over a cause of action only
"While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiff's obligation to provide the grounds of his [or her] entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (citations, alteration, and internal quotation marks omitted). Indeed, Rule 8 of the Federal Rules of Civil Procedure "demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation." Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). "Nor does a complaint suffice if it tenders naked assertions devoid of further factual enhancement." Id. (alteration and internal quotation marks omitted). Instead, a complaint's "[f]actual allegations must be enough to raise a right to relief above the speculative level." Twombly, 550 U.S. at 555, 127 S.Ct. 1955. Although "once a claim has been stated adequately, it may be supported by showing any set of facts consistent with the allegations in the complaint," id. at 563, 127 S.Ct. 1955, and a plaintiff must allege "only enough facts to state a claim to relief that is plausible on its face," id. at 570, 127 S.Ct. 1955, if a plaintiff has not "nudged [his or her] claim[ ] across the line from conceivable to plausible, the[ ] complaint must be dismissed," id.; see also Iqbal, 556 U.S. at 679, 129 S.Ct. 1937 ("Determining whether a complaint states a plausible claim for relief will ... be a context-specific task that requires the reviewing court to draw on its judicial experience and common sense. But where the well-pleaded facts do not permit the court to infer more than the mere possibility of misconduct, the complaint has alleged—but it has not
"[W]hen ruling on a defendant's motion to dismiss, a judge must accept as true all of the factual allegations contained in the complaint." Erickson v. Pardus, 551 U.S. 89, 94, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007) (per curiam); see also Nielsen v. Rabin, 746 F.3d 58, 62 (2d Cir. 2014) ("In addressing the sufficiency of a complaint we accept as true all factual allegations...." (internal quotation marks omitted)); Aegis Ins. Servs., Inc. v. 7 World Trade Co., 737 F.3d 166, 176 (2d Cir. 2013) ("In reviewing a dismissal pursuant to Rule 12(b)(6), we ... accept all factual allegations in the complaint as true...." (alteration and internal quotation marks omitted)). Further, "[f]or the purpose of resolving [a] motion to dismiss, the Court... draw[s] all reasonable inferences in favor of the plaintiff." Daniel v. T & M Prot. Res., Inc., 992 F.Supp.2d 302, 304 n.1 (S.D.N.Y. 2014) (citing Koch v. Christie's Int'l PLC, 699 F.3d 141, 145 (2d Cir. 2012)).
Plaintiffs make three claims in the Amended Complaint. First, Plaintiffs allege violations of New York GBL §§ 349-50 by Defendants Standard and Hyland's. (Am. Compl. ¶¶ 53-64.) Second, Plaintiffs allege that Defendants Target and CVS breached the implied warranty of merchantability. (Id. ¶¶ 65-71.) Third, Plaintiffs claim that Defendants Target and CVS breached a contractual obligation to Plaintiffs. (Id. ¶¶ 72-76.)
The Court will first address Defendants' Mootness and Standing arguments, because they are directed at the Court's jurisdiction. See Anderson Grp., LLC v. City of Saratoga Springs, 805 F.3d 34, 44 (2d Cir. 2015) ("[S]tanding is a threshold matter [that a court] must resolve before reaching the merits." (internal quotation marks omitted)); Dean v. Blumenthal, 577 F.3d 60, 64 (2d Cir. 2009) (per curiam) ("We lack jurisdiction if we conclude that a case is moot.").
Defendants argue that the lawsuit is moot because Hyland's and Standard have "recalled the Products and [are] providing refunds to consumers." (Defs.' Mem 7.) A "case is moot when the issues presented are no longer `live' or the parties lack a legally cognizable interest in the outcome." Powell v. McCormack, 395 U.S. 486, 496, 89 S.Ct. 1944, 23 L.Ed.2d 491 (1969). The burden on a defendant "to demonstrate mootness is a heavy one." Sugarman v. Vill. of Chester, 192 F.Supp.2d 282, 290 (S.D.N.Y. 2002) (internal quotation marks omitted). "The voluntary cessation of allegedly illegal conduct usually will render a case moot if the defendant can demonstrate that (1) there is no reasonable expectation that the alleged violation will recur and (2) interim relief or events have completely and irrevocably eradicated the effects of the alleged violation." Lamar Advert. of Penn, LLC v. Town of Orchard Park, 356 F.3d 365, 375 (2d Cir. 2004) (internal quotation marks omitted). "[I]n general, if the claims of the named plaintiffs become moot prior to class certification, the entire action becomes moot." Comer v. Cisneros, 37 F.3d 775, 798 (2d Cir. 1994); see also LaVoice v. UBS Fin. Servs., Inc., No. 11-CV-2308,
Defendants attach exhibits to their Motion indicating that Standard and Hyland's have initiated a recall campaign and that consumers may receive a refund by "[s]imply call[ing] [their] customer service team," who will then "begin the process of refunding the product." (Recall FAQ.) However, this recall is insufficient to justify dismissal on mootness grounds. As an initial matter, "Defendants[`] promise of a refund as of yet remains just that; none of Plaintiffs' allegations in the Amended Complaint suggests that Plaintiff, or any class members, has received a refund, and there is nothing to suggest Defendants even know whom to compensate or how much each putative class member might claim by way of damages." Reynolds v. Lifewatch, Inc., 136 F.Supp.3d 503, 513 (S.D.N.Y. 2015). Indeed, Defendants have provided no information on their website or in their press release as to the procedures that must be followed, the scope of the refund available, and what amount, if any, will be refunded and to which consumers; in fact, the recall announcement made no mention of any refund to any consumers. (See Recall Announcement.)
Moreover, the GBL provides for a minimum amount of statutory damages. See N.Y. Gen. Bus. Law § 349(h) ("[A]ny person who has been injured by reason of any violation of this section may bring an action... to recover his actual damages or fifty dollars, whichever is greater."). "Thus, even assuming ... Plaintiffs were able to prove injury, but their damages were less than the statutory minimum, they would still be entitled to the minimum amount of statutory damages." Leonard v. Abbott Labs., Inc., No. 10-CV-4676, 2012 WL 764199, at *27 (E.D.N.Y. Mar. 5, 2012). If this is such a case, which the Court cannot determine given the paucity of information regarding the recall in the record at this stage, Plaintiffs' damages would not be mooted, as they may be entitled to the statutory minimum, which may well be greater than their actual damages. See In re: Gen. Motors LLC Ignition Switch Litig., No. 14-MC-2543, 2016 WL 3920353, at *40 (S.D.N.Y. July 15, 2016) ("Because the recalls, even those sufficient to remedy the defects, do not compensate [the] [p]laintiffs fully for the damages sought here, the [c]ourt declines to exercise its discretion to dismiss the remaining claims as prudentially moot.").
Ultimately, "[t]he wisdom of ... Plaintiffs' decision to forgo the [r]ecall program
"[N]ot all standing is created equal, and, historically, courts in the Second Circuit have distinguished between Article III, statutory, and class standing." Kacocha v. Nestle Purina Petcare Co., No. 15-CV-5489, 2016 WL 4367991, at *5 (S.D.N.Y. Aug. 12, 2016); see also In re LIBOR-Based Fin. Instruments Antitrust Litig., 27 F.Supp.3d 447, 481 (S.D.N.Y. 2014) ("[C]ourts in this district have recognized that the Second Circuit considers the questions of Article III, statutory, and class standing as distinct."), reconsideration denied, 2014 WL 6488219 (S.D.N.Y. Nov. 18, 2014). However, "Article III standing must be decided before the merits," All. For Envtl. Renewal, Inc. v. Pyramid Crossgates Co., 436 F.3d 82, 87 (2d Cir. 2006), while "class standing is often considered at the class certification stage of the litigation," Kacocha, 2016 WL 4367991, at *5 (internal quotation marks omitted). Accordingly, the Court will begin by addressing Plaintiffs' Article III standing before considering any remaining arguments at this stage.
"Federal courts are courts of limited jurisdiction," Gunn v. Minton, 568 U.S. 251, 256, 133 S.Ct. 1059, 185 L.Ed.2d 72 (2013) (internal quotation marks omitted), and "their powers [are] circumscribed at their most basic level by the terms of Article III of the Constitution, which states that they may hear only `Cases' or `Controversies,'" Russman v. Bd. of Educ., 260 F.3d 114, 118 (2d Cir. 2001) (quoting U.S. Const. art. III, § 2, cl. 1). "[A]t [the] uncontroverted core [of the `case or controversy' requirement] lies the principle that, at all times, the dispute before the court must be real and live, not feigned, academic, or conjectural." Id. To establish that Plaintiffs' claims meet the minimum constitutional threshold, Plaintiffs must establish three things: "first, that [they] ha[ve] sustained an `injury in fact' which is both `concrete and particularized' and `actual or imminent'; second, that the injury was in some sense caused by the opponent's action or omission; and finally, that a favorable resolution of the case is `likely' to redress the injury." Cortlandt St.
"That a suit may be a class action ... adds nothing to the question of standing," because "even named plaintiffs who represent a class `must allege and show that they personally have been injured, not that injury has been suffered by other, unidentified members of the class to which they belong and which they purport to represent.'" Simon v. E. Ky. Welfare Rights Org., 426 U.S. 26, 40 n.20, 96 S.Ct. 1917, 48 L.Ed.2d 450 (1976) (quoting Warth v. Seldin, 422 U.S. 490, 502, 95 S.Ct. 2197, 45 L.Ed.2d 343 (1975)); see also Ross v. AXA Equitable Life Ins. Co., 115 F.Supp.3d 424, 432 (S.D.N.Y. 2015) (same). Accordingly, "the relevant legal entity for determining whether Article III standing is proper is the named plaintiff(s), not the proposed class." Catalano v. BMW of N. Am., LLC, 167 F.Supp.3d 540, 553 (S.D.N.Y. 2016).
Defendants' standing argument is three-fold: (1) Plaintiffs have failed to adequately plead an economic injury, (see Defs' Mem. 10-11); (2) Plaintiffs lack standing to seek injunctive relief because the products are no longer available, (see id. at 12-13); and (3) Plaintiffs lack standing to pursue claims "relating to products they themselves did not purchase," (id. at 13-15). The Court will address each of these in turn.
Defendants' first argument is that Plaintiffs have failed to plead a concrete and individualized injury "because they have not shown how they have suffered any loss of money." (Id. at 11.) "Economic injury suffices as a form of injury-in-fact that meets the first element of standing." Hughes v. Ester C Co., 930 F.Supp.2d 439, 453 (E.D.N.Y. 2013) (citing Watt v. Energy Action Educ. Found., 454 U.S. 151, 161, 102 S.Ct. 205, 70 L.Ed.2d 309 (1981)). According to Defendants, Plaintiffs have failed to plead sufficient facts "to establish that the Products are `worthless,'" and thus that they are entitled to a refund. (Defs.' Mem. 11.) The Court disagrees. First, the Amended Complaint alleges that, in September 2016, the FDA expressly recommended "that consumers stop using [the Hyland's] products and dispose of any in their possession." (Am. Compl. ¶ 29.) The FDA reiterated this warning on January 27, 2017, "urg[ing] consumers not to [use] these products." (Id. ¶ 39.) In the wake of the FDA's September 2016 warning, Hyland's "discontinued distribution of its teething products in the United States." (Id. ¶ 36.) Then, on April 13, 2017, Standard announced that it was recalling all Hyland's Baby Teething Tablets and Hyland's Baby Nighttime Teething Tablets, and in so doing, stated that "[c]onsumers who have products which are being recalled should discard the product." (Recall Announcement.)
In effect, Standard and Hyland's represented that the products were "safe," which has been belied by the FDA's pronouncements and the later recall. (Am. Compl. ¶ 54.) These representations "resulted in the purchase of [the] products," now allegedly worthless because they are "[i]n reality, ... unsafe," given the FDA's warnings and Standard and Hyland's later recall and instruction to dispose of the product. (Id. ¶¶ 54, 56.) This is sufficient to allege an economic injury for purposes of standing. See Dubuisson v. Stonebridge Life Ins. Co., 887 F.3d 567, 574 (2d Cir. 2018) (finding that "payment of premiums on a void or voidable insurance policy" constituted "a concrete, economic injury"); Reid v. GMC Skin Care USA Inc., No. 15-CV-277,
Plaintiffs claim standing to pursue injunctive relief in this Action, even though Defendants have discontinued the sale of the teething tablets. The Court disagrees. "Plaintiffs lack standing to pursue injunctive relief where they are unable to establish a `real or immediate threat' of injury." Nicosia v. Amazon.com, Inc., 834 F.3d 220, 239 (2d Cir. 2016) (quoting City of Los Angeles v. Lyons, 461 U.S. 95, 111-12, 103 S.Ct. 1660, 75 L.Ed.2d 675 (1983)). "Although past injuries may provide a basis for standing to seek money damages, they do not confer standing to seek injunctive relief unless the plaintiff can demonstrate that she is likely to be harmed again in the future in a similar way." Id. Moreover, the Second Circuit has recognized that "threatened harm in the form of an increased risk of future injury may serve as injury-in-fact for Article III standing purposes," Baur v. Veneman, 352 F.3d 625, 633 (2d Cir. 2003), but "such injuries are only cognizable where the plaintiff alleges actual future exposure to that increased risk," Nicosia, 834 F.3d at 239; see also Marcavage v. City of New York, 689 F.3d 98, 103 (2d Cir. 2012) ("In establishing a certainly impending future injury,... the plaintiff must establish how he or she will be injured prospectively and that the injury would be prevented by the equitable relief sought.").
The Second Circuit's recent decision in Nicosia is dispositive. In Nicosia, the plaintiff purchased a weight loss drug containing a dangerous substance, sibutramine, from Amazon.com. See 834 F.3d at 226. The plaintiff sued on behalf of a putative class, seeking, inter alia, an injunction to prevent Amazon from selling the drug purchased by the plaintiff, as well as other diet drugs containing the same substance that Amazon continued to offer for sale. See id. at 238. The Second Circuit held that the plaintiff "did not establish a likelihood of future or continuing harm," because "he ha[d] not shown that he [was] likely to be subjected to further sales by Amazon of products containing sibutramine." Id. at 239. Indeed, Amazon had ceased sales of the product purchased by the plaintiff, and the plaintiff "failed to allege that he intend[ed] to use Amazon in the future to by any products, let alone food or drug products generally or weight loss products in particular." Id.
As was the case in Nicosia, Plaintiffs here are pursuing injunctive relief based solely on past purchases, and they
Accordingly, the Court dismisses Plaintiffs request for injunctive relief for lack of subject matter jurisdiction pursuant to Rule 12(b)(1).
Lastly, Defendants contend that Plaintiffs "lack Article III standing to assert
The Court finds that Plaintiffs have the requisite Article III standing to pursue their claims, and "[t]o the extent Plaintiff[s] seek[ ] to maintain claims for products [t]he[y] did not purchase ... those will be addressed upon motion for class certification." Kacocha, 2016 WL 4367991, at *11; see also Segovia v. Vitamin
Accordingly, because Plaintiffs have standing to pursue damages, and their damages claims are not moot, the Court will now turn to Defendants' Rule 12(b)(6) Motion to determine whether Plaintiffs have stated a claim.
"A plaintiff under [§] 349 must prove three elements: first, that the challenged act or practice was consumer-oriented; second, that it was misleading in a material way; and third, that the plaintiff suffered injury as a result of the deceptive act." Stutman v. Chem. Bank, 95 N.Y.2d 24, 709 N.Y.S.2d 892, 731 N.E.2d 608, 611 (2000); see also RCA Trademark Mgmt. S.A.S. v. VOXX Int'l Corp., No. 14-CV-6294, 2015 WL 5008762, at *3 (S.D.N.Y. Aug. 24, 2015) (same); In re Scotts EZ Seed Litig., 304 F.R.D. 397, 409 (S.D.N.Y. 2015) (same); Leider v. Ralfe, 387 F.Supp.2d 283, 292 (S.D.N.Y. 2005) (applying this standard to both NYGBL §§ 349 and 350). "To aid in the interpretation of the second element, the New York Court of Appeals has instructed that a deceptive act or practice has an `objective definition,' whereby deceptive acts or practices— which may be acts or omissions—are `limited to those likely to mislead a reasonable consumer acting reasonably under the circumstances.'" Leider, 387 F.Supp.2d at 292 (quoting Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N.A., 85 N.Y.2d 20, 623 N.Y.S.2d 529, 647 N.E.2d 741, 745 (1995)); see also Goshen v. Mut. Life Ins. Co. of N.Y., 98 N.Y.2d 314, 746 N.Y.S.2d 858, 774 N.E.2d 1190, 1195 (2002) (same). In other words, a violation of this section "requires that the defendant's conduct deceive a reasonable consumer in a material respect, work a harm to the public at large, and directly cause the plaintiff's injury." Leider, 387 F.Supp.2d at 292.
"The standard for recovery under General Business Law § 350, while specific to false advertising, is otherwise identical to [§] 349." Goshen, 746 N.Y.S.2d 858, 774 N.E.2d at 1195 n.1; see also RCA Trademark Mgmt., 2015 WL 5008762, at *3 (same); In re Scotts EZ Seed Litig., 304 F.R.D. at 409 ("The same analysis [under § 349] applies to false advertising claims brought under Section 350."). "Additionally, neither Section 349 nor 350 require proof of reliance, ... nor proof that defendants intended to mislead consumers." In re Scotts EZ Seed Litig, 304 F.R.D. at 409 (citing, inter alia, Koch v. Acker, Merrall & Condit Co., 18 N.Y.3d 940, 944 N.Y.S.2d 452, 967 N.E.2d 675 (2012)).
Defendants also contend that Plaintiffs fail to affirmatively allege that they actually saw any misleading statements made by Defendants with regard to the products at issue. (Defs.' Mem. 15-16.) It is true that "[t]o properly allege causation, a plaintiff must state in his complaint that he has seen the misleading statements of which he complains before he came into possession of the products he purchased." Goldemberg v. Johnson & Johnson Consumer Companies, Inc., 8 F.Supp.3d 467, 480 (S.D.N.Y. 2014) (citing Gale v. Int'l Bus. Machs. Corp., 9 A.D.3d 446, 781 N.Y.S.2d 45, 47 (2004)); see also Rapcinsky
Plaintiffs' next claim is brought against Target and CVS for an alleged breach of the implied warranty of merchantability because, "[b]y placing Defendants' homeopathic teething products in the stream of commerce, Defendants were impliedly warranting that the products were reasonably safe, adequately tested for their intended use, and that they were of merchantable quality." (Am. Compl. ¶ 69.) Section 2-314 of the New York Uniform Commercial Code states that "a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind." N.Y. U.C.C. Law § 2-314(1). "The implied warranty of merchantability is a guarantee by the seller that its goods are fit for the intended purpose for which they are used and that they will pass in the trade without objection." Guariglia v. Procter & Gamble Co., No. 15-CV-4307, 2018 WL 1335356, at *6 (E.D.N.Y. Mar. 14, 2018) (quoting Wojcik v. Empire Forklift, Inc., 14 A.D.3d 63, 783 N.Y.S.2d 698, 700 (2004)).
Defendants argue that "the [r]etailers cannot be liable because there is no allegation that such defect could have been discovered through ordinary inspection." (Defs.' Mem. 17 (internal quotation marks omitted).) Indeed, "a retailer `cannot
Plaintiffs allege, "in the alternative" that CVS and Target breached a contract forged with Plaintiffs by "failing to compensate Plaintiffs and the Class for the damages sustained due to Plaintiffs' and the Class members' purchase of the Defendants' unsafe homeopathic teething products." (Am. Compl. ¶¶ 74-75.) "To state a claim for breach of contract under New York law, a plaintiff must allege (1) a contract; (2) performance of the contract by one party; (3) breach by the other party; and (4) damages." Marshall v. Hyundai Motor Am., 51 F.Supp.3d 451, 468 (S.D.N.Y. 2014) (alterations and internal
Here, Plaintiffs' Amended Complaint does not plead the purported contract at issue in this Action, "which itself may be fatal." Marshall, 51 F.Supp.3d at 468; see also Transaero, Inc. v. Chappell, No. 13-CV-5752, 2014 WL 1783732, at *10 (E.D.N.Y. May 6, 2014) (noting that "[a] breach of contract claim will withstand a motion to dismiss only if plaintiff alleges the essential terms of the parties' purported contract in nonconclusory language, including the specific provisions of the contract upon which liability is predicated" (alteration and internal quotation marks omitted)). The Court cannot divine what contract, if any, was entered into between CVS and/or Target and Plaintiffs. Indeed, based on Plaintiffs' own pleadings, it appears that Plaintiffs' breach of contract claim is simply meant to reiterate the breach of implied warranty of merchantability claim. (See Am. Compl. ¶ 74 ("To the extent Defendants CVS's and Target's sale of Defendants' homeopathic teething products is deemed not to be a warranty under New York's Uniform Commercial Code, Plaintiffs plead in the alternative under common law contract law.").) However, Plaintiffs have not alleged what, if any, express warranties were made by CVS and/or Target. Nor has Plaintiff pled the existence of an implied in fact contract, as there is nothing in the pleadings to indicate "[a] promise made by the defendant [that was] sufficiently certain and specific so that the parties' intentions [we]re ascertainable." Betty, Inc. v. PepsiCo, Inc., 283 F.Supp.3d 154, 167 (S.D.N.Y. 2017) (internal quotation marks omitted).
Because Plaintiffs have not alleged any of the terms of the agreement, it is impossible for the Court to determine whether Target and CVS have breached the supposed contract. See Emerald Town Car of Pearl River, LLC v. Phila. Indem. Ins. Co., No. 16-CV-1099, 2017 WL 1383773, at *7 (S.D.N.Y. Apr. 12, 2017) ("A complaint fails to sufficiently plead the existence of a contract if it does not provide factual allegations regarding, inter alia, the formation of the contract, the date it took place, and the contract's major terms. Conclusory allegations that a contract existed or that it was breached do not suffice." (italics, citation, and internal quotation marks omitted)); Childers v. N.Y. & Presbyterian Hosp., 36 F.Supp.3d 292, 312 (S.D.N.Y. 2014) (holding that the plaintiff failed to allege the existence of an agreement between the parties where the complaint alleged, "in a conclusory fashion, that there was an express contractual relationship between the parties, but it d[id] not include any details regarding this alleged express contract" (internal quotation marks omitted)); Held v. Macy's, Inc., 2009 WL 3465945, at *14 (N.Y. Sup Ct. Oct. 19,
For the foregoing reasons, Defendants' Motion To Dismiss is granted in part and denied in part. Defendants' Motion is granted with respect to Plaintiffs' breach of the implied warranty of merchantability claim, the breach of contract claim, and the claim for injunctive relief, and is denied in all other respects. Because Plaintiffs have already amended their Complaint once, these claims are dismissed with prejudice. See Denny v. Barber, 576 F.2d 465, 471 (2d Cir. 1978) (holding that the plaintiff was not entitled to "a third go-around"); Melvin v. County of Westchester, No. 14-CV-2995, 2016 WL 1254394, at *24 n.19 (S.D.N.Y. Mar. 29, 2016) (granting motion to dismiss with prejudice where "[the] [p]laintiff has already had two bites at the apple, and they have proven fruitless" (alterations and internal quotation marks omitted)). The Clerk of the Comt is directed to terminate the pending Motion. (Dkt. No. 59.)
SO ORDERED.