Monday, July 08, 2024

plausible critiques of "clinically proven" suffice to plead false advertising

Noriega v. Abbott Laboratories, --- F.Supp.3d ----, 2024 WL 402925, No. 23 Civ. 4014 (PAE) (S.D.N.Y. Feb. 2, 2024)

Noriega alleged that Abbott’s PediaSure falsely advertised that it was “[c]linically proven to help kids grow.” The packaging claim also contains an asterisk directing a consumer to a statement on the labeling that reads, in smaller font: “Studied in children at risk of malnutrition.” The label also includes a cartoon giraffe next to, and exceeding the height of, a cartoon ruler.

example package with "clinically proven" claim circled

On its website, Abbott lists six clinical studies as “references” supporting the statement in its packaging that the Grow and Gain drink is “clinically proven to help kids grow.” The complaint cited three additional studies that, although financed by Abbott and undertaken by Abbott-affiliated researchers, weren’t listed, which allegedly did not find evidence that PediaSure led to an increase in children’s height-to-age or height-to-weight.

Noriega’s own grandson was short for his age; she allegedly paid a premium for it, but after around a year, she stopped, because her grandson, despite ingesting two Grow and Gain Drinks per day, remained short for his age, and had become overweight.

At the motion to dismiss stage, it was plausible that the “clinically proven” claim was false or misleading under NYGBL §§ 349 and 350.

Abbott’s central argument was that the clinical studies cited on its website support that PediaSure has been clinically proven to help kids grow, and therefore it was implausible to term that claim materially misleading. But the complaint alleged “strong, evidence-backed reasons to doubt Abbott’s claim including clinical studies that Noriega suggests may be as or more sound than those Abbott cites.” The complaint made methodological critiques of Abbott’s favored studies, which weren’t implausible. Some of them derived from a published, peer-reviewed paper. And although “identifying flaws in a scientific study does not necessarily make marketing statements based on such a study false or misleading,” “at the motion-to-dismiss phase, it is not the Court’s province to look beneath a facially colorable methodological critique where doing so would require resolving factual disputes and/or making scientific assessments.”

In footnotes, the court said it wasn’t relying on the critique that it was “methodologically improper” to base the “clinically proven” claim on children suffering from malnutrition in foreign countries. Noriega alleged that the nutritional experiences of such children materially differ from those of children in New York State and that “American children ... are not ‘at risk of malnutrition.’ ” “Although Noriega is at liberty to pursue such a theory in this litigation, the Court, in finding the Complaint’s § 349 and § 350 claims plausibly pled, puts aside these dubiously sweeping generalizations about the nutritional experiences of American children.” Relatedly, whether the asterisked disclaimer sufficed to clarify the claim was not suitable for a motion to dismiss.

Although “every clinical study could be criticized in some way,” the complaint here went “well beyond” “nitpicking” to “substantial.”

In addition, the complaint cited published literature disputing the methodologies of several of the studies on which the Abbott label’s effectiveness claim relied. And it cited three allegedly contrary Abbott-funded studies. “[T]he existence of studies contradicting the label’s claim reinforce[s] the plausibility of the Complaint’s allegation that the label would mislead a reasonable consumer.” Discovery was the place to evaluate the merits.

Cases like this serve as implicit rebukes to the Fourth Circuit's unserious GNC decision.

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