David Ferrer Arroyo v. Albertsons Companies, Inc. et al.

Summary

The United States District Court for the Central District of California granted Albertsons Companies, Inc.’s Rule 12(b)(6) motion to dismiss a putative class action alleging that consumers were sold valueless gift cards in violation of the California Consumer Legal Remedies Act. The court held that the plaintiff failed to plead an actionable affirmative misrepresentation or omission with the particularity required by Rule 9(b), including failure to adequately allege materiality and a duty to disclose. The First Amended Complaint was dismissed with leave to amend within fourteen days.

Holdings

1. Plaintiff failed to plead an affirmative misrepresentation with the particularity required by Rule 9(b) because he did not explain how the packaging statement that the gift cards could be purchased in amounts between $20 and $500 was misleading when made.
2. Plaintiff failed to plead an actionable CLRA omission because he did not allege that the omission contradicted a representation, arose from a duty to disclose, or was material in a manner that would have caused a reasonable consumer to behave differently.
3. The First Amended Complaint was dismissed with leave to amend because the court had not determined that amendment would necessarily be futile.

Questions Presented

1. Whether Plaintiff adequately pleaded an affirmative misrepresentation under the CLRA and Rule 9(b).
2. Whether Plaintiff adequately pleaded an actionable omission under the CLRA, including a duty to disclose and materiality.
3. Whether the First Amended Complaint should be dismissed under Rule 12(b)(6) and, if so, whether leave to amend should be granted.

Disposition

dismissed