David Williams, et al v. Reckitt Benckiser LLC, et al, No. 22-11232 (11th Cir. 2023)
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This is an appeal from a district court order approving a class-action settlement that purports to provide injunctive relief and up to $8 million in monetary relief to a class of individuals (the “Class”) who purchased one or more “brain performance supplements” manufactured and sold by Defendants Reckitt Benckiser LLC and RB Health (US) LLC (together, “RB”) under the brand name “Neuriva.” Five Plaintiffs (together, the “Named Plaintiffs”) who had previously purchased Neuriva brought a putative class action, alleging that RB used false and misleading statements to give consumers the impression that Neuriva and its “active ingredients” had been clinically tested and proven to improve brain function. The parties promptly agreed to a global settlement (the “Settlement” or “Settlement Agreement”) that sought to resolve the claims of all Plaintiffs and absent Class members. The current appeal involves one unnamed Class member, an attorney and frequent class-action objector, who objected in district court and subsequently appealed the district court’s approval order.
The Eleventh Circuit vacated the district court’s order and remanded. The court concluded that the Named Plaintiffs lack standing to pursue their claims for injunctive relief. The court explained that Plaintiffs seeking injunctive relief must establish that they are likely to suffer an injury that is “actual or imminent,” not “conjectural or hypothetical.” But none of the Named Plaintiffs allege that they plan to purchase any of the Neuriva Products again. The district court, therefore, lacked jurisdiction to award injunctive relief to the Named Plaintiffs or absent Class members, and its approval of the Settlement Agreement was an abuse of discretion.
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