LYTLE V. NUTRAMAX LABORATORIES, INC., No. 22-55744 (9th Cir. 2024)
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The case involves a consumer class action against Nutramax Laboratories, Inc. and Nutramax Laboratories Veterinary Sciences, Inc. (collectively, “Nutramax”), alleging that Nutramax violated the California Consumers Legal Remedies Act by falsely marketing its pet health product, Cosequin, as promoting healthy joints in dogs. The plaintiffs, Justin Lytle and Christine Musthaler, claimed that Cosequin provided no such health benefits. The district court certified a class of California purchasers of certain Cosequin products who were exposed to the allegedly misleading statements.
The district court had certified the class based on the proposed damages model of Plaintiffs’ expert, Dr. Jean-Pierre Dubé, to find that common questions predominated as to injury. Nutramax appealed, arguing that the district court erred in relying on an unexecuted damages model to certify the class and that the element of reliance was not susceptible to common proof.
The United States Court of Appeals for the Ninth Circuit affirmed the district court’s decision. The appellate court held that there was no general requirement that an expert actually apply to the proposed class an otherwise reliable damages model in order to demonstrate that damages are susceptible to common proof at the class certification stage. The court also rejected Nutramax’s contention that the district court incorrectly concluded that the element of reliance was susceptible to common proof. The district court properly found that classwide reliance may be established under the CLRA through proof that a misrepresentation is material.
Court Description: Class Action The panel affirmed the district court’s grant of class certification in a consumer class action concerning the marketing of the pet health product Cosequin.
Plaintiffs claim that Nutramax violated the California Consumers Legal Remedies Act (“CLRA”) by marketing Cosequin as promoting healthy joints in dogs, when in fact Cosequin provides no such health benefit. The district court certified a class of California purchasers of certain Cosequin products who were exposed to the allegedly misleading statements.
Nutramax challenged the district court’s reliance upon the proposed damages model of Plaintiffs’ expert, Dr. Jean- Pierre Dubé, to find that common questions predominated as to injury. The panel held that, contrary to Nutramax’s contention, there was no general requirement that an expert actually apply to the proposed class an otherwise reliable damages model in order to demonstrate that damages are susceptible to common proof at the class certification stage. Rather, class certification plaintiffs may rely on an unexecuted damages model to show that damages are susceptible to common proof. The panel concluded that the district court did not abuse its discretion in finding that Dr. Dubé’s proposed model was sufficiently sound and developed to satisfy this standard at the class certification stage.
The panel rejected Nutramax’s contention that the district court incorrectly concluded that the element of reliance was susceptible to common proof. The district court properly found that classwide reliance may be established under the CLRA through proof that a misrepresentation is material. While the presumption of reliance is rebuttable, the district court did not abuse its discretion in concluding that Nutramax failed to rebut the presumption here.
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