Morrison Foerster’s Class Dismissed blog provides insights, recommendations, and timely reports on the latest defense news, developments, and trends in the most current class actions lawsuits and product liability issues that affect consumer-facing companies. Through Class Dismissed, attorneys from our nationally recognized Consumer Class Action and Products Liability practices offer a real-time assessment of the developments in matters that are shaping the industry. This blog examines the full spectrum of consumer-related class action and product liability lawsuits ranging from false advertising, privacy, consumer product safety, ADA, food misbranding, TCPA, environment, retail, and government actions as well as nationwide and multidistrict litigation class actions.<h2>ABOUT MORRISON FOERSTER</h2>Morrison Foerster is a leading global law firm that transforms complexity into advantage for its clients. Our clients include some of the largest financial institutions, banks, consulting and accounting firms, and Fortune 100, technology, and life sciences companies. Highlighting the firm’s commitment to client service, leadership in market-changing deals and impact litigation, and values-based culture, Morrison Foerster has been repeatedly recognized as one of the top 10 firms on The American Lawyer’s A-List. Year after year, the firm receives significant recognition from Chambers and The Legal 500 across their various guides, including Global, USA, Asia‑Pacific, Europe, UK, Latin America, and FinTech Legal. Our lawyers passionately care about delivering legal excellence while living our values. Morrison Foerster has a long-standing commitment to creating a culture that respects and celebrates differences, while providing an inclusive environment. The firm has achieved Mansfield Certification Plus since 2018 as a result of successfully reaching at least 30 percent women, communities of color, and LGBTQ+ lawyer representation in a notable number of current leadership roles and committees. The firm also has a long history of commitment to the community and society through providing pro bono legal services, including litigating for civil rights and civil liberties, improving public education and fostering the wellbeing of children, advocating for veterans, promoting international human rights, enforcing the right to asylum, and safeguarding the environment.

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Julie Park protects her clients’ products no matter what kind of product issue they face—whether it is planning for new product development, recalling an existing product, or defending clients against product liability or consumer class actions. Drawing on her deep technical and legal expertise, Julie counsels clients on consumer product safety regulation and pharmaceutical and medical device preemption while also managing complex and multijurisdictional litigation both in state and federal court.

Julie Y. Park

<div class="videoWrapper"><iframe frameborder="0" class="sticky-video" allowfullscreen="1" title="Meet Penny Preovolos, Litigation Partner" src="https://www.youtube-nocookie.com/embed/hv7hYn-Bl7c?rel=0&showinfo=0;vq=hd1080" title="iframe"></iframe></div>Penelope has served as lead counsel in major consumer class actions and antitrust cases for more than 35 years, successfully representing high-profile defendants in antitrust, consumer fraud, and product defect matters. Her clients span a range of industries, including consumer electronics, technology, retail, publishing, food and beverage, cosmetics, and household products. According to Chambers USA, Penelope has a “great reputation for antitrust and product liability work” and is a “superb all-around antitrust lawyer.”Penelope was named the 2019 Antitrust Lawyer of the Year by the Antitrust, UCL, and Privacy Section of the California Lawyers Association. She was co-chair of MoFo’s antitrust practice for 14 years. She has served as chair of the Antitrust and Trade Regulation Section of the State Bar of California and as a member of the Ninth Circuit Advisory Committee on Local Rules and Operations. She is an editor of and frequent contributor to Morrison & Foerster’s <a href="https://classdismissed.mofo.com/">Class Dismissed blog</a>, as well as a frequent speaker about class action and antitrust issues.More About PenelopePenelope clerked for the Honorable Charles M. Merrill, United States Court of Appeals for the Ninth Circuit. She graduated cum laude from Harvard Law School, where she was executive editor of the Harvard Civil Rights – Civil Liberties Law Review. Penelope was a member of Phi Beta Kappa at the University of California, Berkeley. She was awarded the University Medal, the highest undergraduate honor at the university, as well as the English Departmental Citation (awarded to the outstanding graduate in that department).

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Senior Counsel

Penelope has served as lead counsel in major consumer class actions and antitrust cases for more than 35 years, successfully representing high-profile defendants in antitrust, consumer fraud, and product defect matters. Her clients span a range of industries, including consumer electronics, technology, retail, publishing, food and beverage, cosmetics, and household products.

Penelope A. Preovolos

Claudia focuses her practice on the defense of consumer class actions and on complex commercial litigation, including unfair business competition, false advertising, product liability, and privacy matters. She is currently representing numerous consumer goods manufacturers and retailers in false advertising and mislabeling class action lawsuits. Claudia also regularly counsels clients in the food, cosmetics, retail, and technology industries. She represents companies in false advertising disputes before the National Advertising Division (NAD) of the Council of Better Business Bureaus, Inc.<h5>More about Claudia</h5>Claudia is active in MoFo’s pro bono efforts, and recently traveled to El Paso, Texas, to work with families separated and detained at the border. She is also supervising a pro bono collaboration with Equal Rights Advocates, a nonprofit fighting for gender justice in work places and schools across the country. The initiative will help students who have been victims of sexual assault, attempted assault, or harassment find support and seek justice. Claudia is also a board member of Bay Area Legal Aid and a former board member of Equal Rights Advocates. Claudia is an editor and frequent contributor to MoFo’s <a href="https://classdismissed.mofo.com/">Class Dismissed</a> blog, which provides reports about the latest defense news, developments, and trends in class action lawsuits and product liability issues that affect consumer-facing companies. Her perspectives are also respected in the larger legal community: Claudia has published articles about class action and false advertising issues, and is a co-author of Chapter 7 — “Unfair Competition in California Business Litigation 2016” — of The Recorder. She also regularly speaks at conferences on class action and advertising trends. Claudia is currently serving as a Lawyer Representative for the Northern District of California. She received her J.D. degree in 2004 from Berkeley Law (Boalt Hall School of Law), where she was an associate editor of the Berkeley Technology Law Journal.

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Claudia focuses her practice on the defense of consumer class actions and on complex commercial litigation, including unfair business competition, false advertising, product liability, and privacy matters. She is currently representing numerous consumer goods manufacturers and retailers in false advertising and mislabeling class actions.

Claudia M. Vetesi

Alexandra Barlow is a partner in the Litigation Department of Morrison Foerster’s San Diego office.Alexandra litigates product liability matters involving medical devices, pharmaceuticals, consumer products, automobiles, and AI. Alexandra's litigation expertise spans the entire case life cycle in both state and federal courts. She handles all phases of discovery, including fact investigation and expert discovery. Alexandra has taken over twenty-five depositions, including experts, plaintiffs, treating physicians, and third-party witnesses. She drafts and argues motions of all types, including motions for summary judgment, motions to quash, and motions for preliminary injunction.Alexandra has significant trial experience. She has first-chaired a one-week jury trial and second-chaired a five‑week jury trial, both involving multiple claims and witnesses. She also has extensive experience in alternative dispute resolution, representing clients at mediations, mandatory settlement conferences, and early neutral evaluations.Alexandra enjoys tracking developments and keeping her clients updated on product liability and personal injury claims, frequently writing or presenting on emerging areas such as autonomous vehicles and smart devices. Alexandra’s experience also extends to professional liability, warranty claims, eminent domain, and construction law.Alexandra earned her J.D. from the University of San Diego School of Law. While in law school, the San Diego Law Review published her comment on the recovery of damages by plaintiffs in a persistent vegetative state, and she also served as a comment editor. She received her B.A. from the University of California, Los Angeles, where she majored in Political Science and minored in Spanish. A San Diego native, she attended a Spanish immersion school through the eighth grade. Alexandra is active in the San Diego community, advising students at a local college. She is also a member of several legal organizations in San Diego, including Lawyer’s Club, the Association of Business Trial Lawyers, and Wallace Inn of Court.

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Alexandra Barlow is a partner in the Litigation Department of Morrison Foerster’s San Diego office. Alexandra litigates product liability matters involving medical devices, pharmaceuticals, consumer products, automobiles, and AI. Alexandra’s litigation expertise spans the entire case life cycle in both state and federal courts. She handles all phases of discovery, including fact investigation and expert discovery. Alexandra has taken over twenty-five depositions, including experts, plaintiffs, treating physicians, and third-party witnesses. She drafts and argues motions of all types, including motions for summary judgment, motions to quash, and motions for preliminary injunction.

Alexandra Barlow is a partner in the Litigation Department of Morrison Foerster’s San Diego office. Alexandra litigates product liability matters involving medical devices, pharmaceuticals, automobiles, AI, and robotics. Alexandra's litigation expertise spans the entire case life cycle in both state and federal courts. She handles all phases of discovery, including fact investigation and expert discovery. Alexandra has taken over twenty-five depositions, including experts, plaintiffs, treating physicians, and third-party witnesses. She drafts and argues motions of all types, including motions for summary judgment, motions to quash, and motions for preliminary injunction.

Alexandra Barlow

Adam J. Hunt is a partner in the Litigation Department of Morrison Foerster’s New York office. His practice focuses on complex litigation, with an emphasis on class action and commercial litigation.Mr. Hunt has extensive experience representing consumer products companies, financial institutions, and technology firms in class action cases and complex commercial disputes before state and federal trial courts, as well as in arbitrations. Clients seek Mr. Hunt’s counsel for his creative, strategic thinking in high-stakes, high-profile matters. He has represented clients facing claims under false advertising, antitrust, and privacy laws throughout the country, securing wins at the pleading stage, summary judgment, and trial, in addition to negotiating favorable settlements, often early in the case. Representative experience includes successfully securing rulings dismissing two putative false advertising class action cases against one of the best-known consumer electronics companies in the world; obtaining a complete win on summary judgment for a major shipping and logistics company in a multimillion-dollar commercial dispute; appearing as counsel at trial for a leading financial institution in a $100 million commercial dispute, winning a bench trial verdict; and prevailing on motions to dismiss false advertising class actions against a leading Greek yogurt company.Mr. Hunt is also an editor of the firm’s <a href="https://classdismissed.mofo.com/" target="_self">Class Dismissed blog</a>, which provides insights, recommendations, and timely reports on the latest defense news, developments, and trends in the most current class action lawsuits that affect consumer-facing companies.Mr. Hunt maintains an active pro bono practice and is the recipient of the New York State Bar Association’s 2017 President’s Pro Bono Service Award for the First Judicial Department, the 2018 Public Service Award from New York University School of Law, and Morrison Foerster’s Kathi Pugh Award for Pro Bono Services.Mr. Hunt received his B.A. with honors from Swarthmore College and his J.D. cum laude from New York University.

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Adam Hunt is a partner in the Litigation Department of Morrison Foerster’s New York office. His practice focuses on complex litigation, with an emphasis on class action and commercial litigation.

Adam Hunt

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Alexandra Preece Barlow

Adam J. Hunt

The Future of Section 230: Protection Against Product Liability Claims?

New Wave of PFAS Legislation Aimed at Consumer Products

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While it rarely rules on questions of preemption, the Ninth Circuit took an even rarer step on July 1, 2024 when it took up the question of whether private parties can seek to enforce the provisions of California’s Sherman Law that parallel federal law.Plaintiffs brought suit against Sprout Foods, Inc. (“Sprout”), a manufacturer of baby food, arguing that the labels on the baby food were deceptive and unlawful because they made statements regarding the nutritional content of the baby food, like “3g of Protein” and “5g of Fiber.” Plaintiffs alleged that Sprout’s baby food products were mislabeled under the “unlawful” prong of California’s Unfair Competition Law (UCL) because they were mislabeled under California’s Sherman Law.  Plaintiffs asserted that FDA regulations prohibit certain nutrient content claims on foods intended for children under the age of two and argued that Sprout’s products therefore violated those regulations and the identical provisions of California’s Sherman Law.  Sprout argued that Plaintiffs’ UCL “unlawful” prong claim was impliedly preempted because a violation of the Sherman Law requires a finding that the FDCA has been violated, and the FDCA, in turn, can be enforced only by the United States.  The lower court agreed with Sprout on the issue of preemption, holding that because a violation of the Sherman Law requires a finding that the FDCA has been violated, and the FDCA can be enforced only by the United States, Plaintiffs’ claims were preempted insofar as they originated from, were governed by, and terminated according to federal law.Prior to the Ninth Circuit’s decision, litigants frequently battled over whether lawsuits alleging a violation of the FDCA, but brought under state consumer protection laws, were impliedly preempted.  Federal law preempts state law when Congress has expressly stated or impliedly intended its purpose to do so.  Under the Supreme Court’s holding in Buckman Co. v. Plaintiffs’ Legal Committee, a state law can be preempted in two instances: (1) a plaintiff may not impose food label requirements under state law that are different from those imposed under the FDCA and its regulations, and (2) a plaintiff cannot privately enforce the FDCA.[1]  Accordingly, private claims that “exist solely by virtue of the FDCA,” or where the claim would not exist but for the alleged violation of the FDCA, are impliedly preempted.[2]  In recent years, Plaintiffs in consumer class actions targeting food labeling have argued that even though their claims are based on an underlying violation of the FDCA, their claims are not impliedly preempted.Ninth Circuit Clarifies PreemptionIn reversing the district court’s holding that enforcement of state standards is impliedly preempted by federal law, the Ninth Circuit, in an opinion written by Judge Schroeder, reasoned that federal law contemplated the ability of states, like California, to enact their own parallel laws permitting private rights of action.  The Ninth Circuit held that the critical distinction between Davidson and Buckman was that, in Buckman, Plaintiffs attempted to use state causes of action to obtain damages for violations owed under the FDCA, but in Davidson, Plaintiffs claimed violations of California’s Sherman Law (which runs parallel to the federal FDCA and whose standards are identical to the federal FDCA).[3]  In other words, because Plaintiffs’ UCL “unlawful” prong claim was premised on a violation of California’s Sherman Law, which was identical to the FDCA, Plaintiffs’ claims were not preempted.  The Ninth Circuit reasoned that Congress did not intend for state standards, like those under California’s Sherman Law, to be impliedly preempted and thus permitted states to adopt them: “there is no reason we can perceive why Congress would permit states to enact particular legislation and then deny enforcement by their citizens. . .  Federal law does not support such a strange result.”[4]Furthermore, the Ninth Circuit reasoned that even if it had doubts regarding the interaction between FDA regulations and California’s Sherman Law as applied through the UCL, it would still reverse the lower court’s holding because of the Ninth Circuit’s longstanding presumption against preemption. The Ninth Circuit reiterated that even if Sprout’s interpretation of preemption were equally plausible to that of Plaintiffs, the Court would be bound to ultimately hold that the FDCA does not impliedly preempt private enforcement of the Sherman Law and allow the case to proceed.Judge Collins DissentsJudge Collins dissented from the Ninth Circuit’s preemption holding, writing that a private claim based on state law that simply copies the FDCA’s requirements and has no independent substantive content is impliedly preempted.  Judge Collins distinguished between cases where plaintiffs sought to impose state-law standards with independent content, and state law standards that merely “parasitically cop[y]” the federal standard.[5]  State law standards with independent content were not impliedly preempted, but standards that merely copied the federal standard (as does the Sherman Law) were impliedly preempted.[6]Moreover, Judge Collins reasoned that the Sherman Law may have been intended to provide a right of action for state authorities to bring claims premised on federal regulations, not necessarily to grant private citizens a right of action.  The FDCA prohibits private enforcement of federal law, instead giving that authority to the federal government.[7]  By “permitting” states to enact statutes that mirror the FDCA, it would not be “strange” for the federal government to also limit the enforcement of state laws to state actors.[8]  Judge Collins further noted that enforcement by state authorities would allow for additional remedies provided by state courts that are not afforded by the FDCA, such as monetary damages.TakeawaysThe Ninth Circuit’s holding in Davidson clarifies the outer bounds of implied preemption in cases in which plaintiffs seek to leverage highly technical federal regulations in litigation through California’s Sherman Law and the “unlawful” prong of the UCL.  Notably, Davidson is the first case to reach the Ninth Circuit on implied preemption, California’s Sherman Law, and food labels.  Accordingly, the legal landscape is likely to continue to evolve as courts grapple with Davidson’s application.  Morrison Foerster will continue to monitor the impact of this ruling and is available to provide legal guidance to clients on the ramifications of this decision.<hr class="divider">[1] Buckman Co. v. Plaintiffs’ Legal Comm., 531 U.S. 341, 353 (2001); 21 U.S.C. §§ 343-1, 337(a).[2] Id.[3] Id.; Davidson v. Sprout Foods, Inc., 2024 WL 3213277, at *6 (9th Cir. June 28, 2024).[4] Davidson v. Sprout Foods, Inc., 2024 WL 3213277, at *6.[5] Id. at *12.[6] Id.[7] Id. at *17.[8] Id.

Nature's Path Foods

Suja Juices

Unilever USA Inc.

Nature’s Path Foods and Sprouts Farmers Market

Iovate Health Sciences, International

Claudia focuses her practice on the defense of consumer class actions and on complex commercial litigation, including unfair business competition, false advertising, product liability, and privacy mat

Claudia Vetesi

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Associate

Lena is an associate in the Litigation Department in Morrison Foerster’s San Francisco office. Lena’s practice focuses on commercial and class actions litigation, with an emphasis on false advertising, unfair competition, and antitrust. Lena regularly counsels clients in the food and beverage, dietary supplement, cosmetics, retail, and technology sectors.











Lena Gankin

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Mamie Tabet is an associate in the Litigation Department of Morrison Foerster’s San Francisco office.

Mamie Tabet

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Passing on Preemption: Ninth Circuit Holds That California’s Sherman Law Is Not Impliedly Preempted

High Court Orders Rethink Of $9.7M Award After TransUnion

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While it rarely rules on questions of preemption, the Ninth Circuit took an even rarer step on July 1, 2024 when it took up the question of whether private parties can seek to enforce the provisions of California’s Sherman Law that parallel federal law.

Passing on Preemption: Ninth Circuit Holds That California’s Sherman Law Is Not Impliedly Preempted

On May 23, 2024, the United States Supreme Court decided Coinbase, Inc., v. Suski, No. 23-3, serving a reminder to companies with mandatory consumer-facing arbitration provisions that contractual consistency is a key to enforceability. In Justice Jackson’s unanimous opinion, the Court found that “[w]here parties have agreed to two contracts—one sending arbitrability disputes to arbitration, and the other either explicitly or implicitly sending arbitrability disputes to the courts—a court must decide which contract governs.”This case involved the users of a cryptocurrency exchange platform, Coinbase, Inc. (“Coinbase”), entering into two digital contracts. The first contract, the Coinbase User Agreement (“User Agreement”), contained a delegation clause that provided that any disputes regarding arbitrability would be decided by an arbitrator. The second contract, the Official Rules for the Dogecoin promotional sweepstakes (“Sweepstakes Rules”), contained a forum selection clause that provided sole jurisdiction over sweepstakes-related disputes to the California courts.Plaintiff assented to both the User Agreement and Sweepstakes Rules. But following the sweepstakes, he filed a putative class action in the United States District Court for the Northern District of California alleging that Coinbase misrepresented entrance requirements into the Dogecoin sweepstakes in violation of various California laws. Coinbase moved to compel arbitration and argued that the User Agreement’s delegation clause meant that an arbitrator had to decide any arbitrability challenges to the scope or enforceability of the arbitration provision. But the district court held that it first needed to decide which contract’s dispute resolution provisions applied, since this would determine if the court or an arbitrator should decide who would ultimately hear the case, based on the dueling provisions. The court held that it, not the arbitrator, should determine which contract controlled. The court, applying California state law, then also held that the Sweepstakes Rules’ forum selection clause controlled, denying Coinbase’s motion to compel. The Ninth Circuit Court of Appeals affirmed.On May 23, 2024, the Supreme Court affirmed, explaining that when two contracts conflict as to which one decides the arbitrability of a dispute, this threshold issue must be decided by a court in the first instance. The Court based this decision on “basic legal principles” that “disputes are subject to arbitration if, and only if, the parties actually agreed to arbitrate those disputes.” This includes if the dispute is over arbitrability itself. In other words, “before either the delegation provision or the forum selection clause can be enforced, a court needs to decide what the parties have agreed to—i.e., which contract controls.” Here, this means the issue of whether the parties’ second agreement superseded their earlier agreement regarding who decides arbitrability for the sweepstakes-related disputes is therefore to be decided by the court before referring the dispute to arbitrators.The Court did make clear that their decision was limited in scope, particularly in Justice Gorsuch’s concurrence. They “reaffirm[ed] well-established principles about the primacy of the parties’ agreements when it comes to arbitration,” with their decision turning on the very specific conflict between the two contracts. The Court declined to address the secondary holding that the Sweepstakes Rules’ forum selection clause took precedence over the User Agreement’s arbitration clause, leaving the Ninth Circuit holding in place and leaving the case in the California court.Key takeaways: Companies seeking to enforce arbitration clauses should keep in mind the importance of uniform language across contracts, particularly when it comes to arbitration agreements. In particular, companies with consumer-facing agreements online, which are often supplemented by side promotions or sweepstakes that contain unique terms, need to consider the interplay between these various contracts. As this decision demonstrates, a delegation clause in the initial terms of service does not always guarantee arbitration if companies are not meticulous across all terms and agreements. But the Supreme Court did make clear that this holding is narrow—if the second Sweepstakes Rules contract didn’t exist, the court would have compelled arbitration. So beware of conflicting terms!Read the <a href="https://www.supremecourt.gov/opinions/23pdf/23-3_879d.pdf" target="_blank">Court’s opinion</a>.

Beware of Conflicting Terms: When Customers Entered into Multiple Contracts, SCOTUS Says Courts Must Decide Which One Governs Arbitrability 

Adam Hunt is a partner in the Litigation Department of Morrison Foerster’s New York office. His practice focuses on complex litigation, with an emphasis on class action and commercial litigation.

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Jenny Morris is an associate in the Litigation Department of Morrison Foerster’s Washington, D.C. office.

Jenny Morris

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Beware of Conflicting Terms: When Customers Entered into Multiple Contracts, SCOTUS Says Courts Must Decide Which One Governs Arbitrability

On May 23, 2024, the United States Supreme Court decided Coinbase, Inc., v. Suski, No. 23-3, serving a reminder to companies with mandatory consumer-facing arbitration provisions that contractual consistency is a key to enforceability.

Beware of Conflicting Terms: When Customers Entered into Multiple Contracts, SCOTUS Says Courts Must Decide Which One Governs Arbitrability

Are Prebiotic Drinks Plaintiffs’ Bar’s Next Target?Late last month, San Francisco resident Kirstin Cobbs initiated a class action lawsuit against poppi after purchasing its product, poppi prebiotic soda, believing the product to be “gut healthy.” Poppi sodas are packaged in cans with label designs making noteworthy statements such as the product is “for a healthy gut.” Additionally, the front of the packaging depicted in the complaint displays the slogan “Be Gut Happy. Be Gut Healthy.”The suit was filed in the Northern District of California under California’s False Advertising Law (FAL), California’s Consumers Legal Remedies Act (CLRA), California’s Unfair Competition Law (UCL), and unjust enrichment. The complaint alleges that the product is not “gut healthy” because consuming the soda in the amount normally ingested will not create meaningful prebiotic effects. Plaintiff concludes that if she had been aware of this, she would not have purchased the product. Cobbs alleges that by promoting poppi soda as a gut-friendly, prebiotic beverage, poppi is misleading consumers because “a consumer would need to drink more than four Poppi sodas in a day to realize any potential health benefits from its prebiotic fiber.” But poppi is likely targeted because it has “quickly climbed the ranks as one of the most popular beverages in the United States” since consumers are interested in alternatives to traditional sodas.Health Halo Litigation Continues with New TrendsPoppi prebiotic sodas are marketed as an alternative to traditional sodas, emphasizing the importance of gut health and prebiotic ingredients. Prebiotics support probiotics, which aid the immune system and digestion. A poppi soda contains two grams of dietary fiber, which appears to come from inulin. Sources suggest that inulin may stimulate the growth of healthy bacteria in the gut.There is an increasing uptick in lawsuits challenging claims that may imply health benefits to consumers. The complaint alleges that consumers search for healthier alternatives to soda, so it is not surprising that companies are trying to appeal to health-conscious consumers. It is similarly not surprising that the plaintiffs’ bar targets emerging trends, beginning with successful, popular products.These lawsuits have targeted products using terms such as “healthy,” “healthier,” “wholesome,” and “good for you.” The suits have faced mixed results, with some defeating false advertising challenges and others proceeding further into litigation. As we have written about <a href="/topics/241022-water-is-in-white-bread-is-out-healthy-gets-a-new-look-in-2023" target="_self">previously</a>, in 2023, FDA redefined its definition of “healthy.” Moreover, these recent lawsuits target terms which are not defined by FDA regulations. While FDA has regulated “healthy,” it does not regulate terms that may imply health benefits. Specifically, here, FDA has not defined “prebiotic,” nor does it regulate “good for your gut,” “gut healthy,” or “gut happy.”Key TakeawaysLike other food labeling false advertising cases, we expect early arguments over whether these terms are puffery and whether a reasonable consumer would be deceived by a term such as “gut healthy” to mean that they are receiving some nutritional benefit. If this case proceeds past the pleadings stage, we expect that the case may turn on whether the ingredients provide the gut health benefits that consumers expect to receive. Additionally, there may be a battle of the experts over whether two grams of inulin can provide health benefits.We will be tracking this litigation and we write this as an important reminder that companies should be sure to review all labeling on food and beverage products and consult with counsel as necessary to stay on top of current changes in litigation trends.Shannon Labuschagne, a Summer Associate in Morrison Foerster's San Francisco office, contributed to this blog post.

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Lauren N. Margolies is an associate in the Litigation Department of Morrison Foerster’s New York Office.

Lauren Margolies

Lauren N. Margolies

Are Prebiotic Drinks Plaintiffs’ Bar’s Next Target?
Late last month, San Francisco resident Kirstin Cobbs initiated a class action lawsuit against poppi after purchasing its product, poppi prebiotic soda, believing the product to be “gut healthy.” Poppi sodas are packaged in cans with label designs making noteworthy statements such as the product is “for a healthy gut.” Additionally, the front of the packaging depicted in the complaint displays the slogan “Be Gut Happy. Be Gut Healthy.”



Health Halo Trend Continues With poppi "Gut Healthy" Sodas

On April 15, 2024, in a big win for the continued validity of implied preemption, the Supreme Court declined to hear an appeal of the First Circuit’s preemption-based dismissal of a proposed misbranding class action. The plaintiff claimed that the label of a dietary supplement called “Lactaid” should be required to meet the heightened regulatory requirements for drug products. The defendant—and the district court and First Circuit—disagreed.Read the <a href="https://www.mofo.com/resources/insights/240430-implied-preemption-for-dietary-supplements" target="_blank">full client alert</a>.

Fertility Center Litigation

Fitbit

MicroPort

Leading Healthcare, Pharmaceutical, and Medical Device Company

Lethal Injection Matters – Major Pharmaceutical Company

Pain Pump Matters – Large Pharmaceutical Company

Major Technology Company

Leading Chemical Company

Security Device Company

In re Air Crash Near Peixoto de Azevedo, Brazil

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Erin Bosman is chair of MoFo’s Class Actions and Mass Torts Practice Group and is a founder and co-head of the Artificial Intelligence Group. Clients value her business strategy, seeking her comprehensive counsel throughout the product life cycle, especially in high-stakes litigation and product recalls.

Erin M. Bosman

Erin Bosman is chair of MoFo’s Class Actions and Mass Torts Practice Group and is a founder and co-head of the Artificial Intelligence Group. Clients value her business strategy, seeking her comprehensive counsel throughout the product life cycle, especially in high-stakes litigation and product recalls.

Erin Bosman

An orthopedic implant company

Implied Preemption for Dietary Supplements Is Here to Stay