Gunn v. FCA US, LLC

Summary

The United States District Court for the Northern District of California dismissed plaintiffs’ first amended complaint challenging FCA’s disclosure of vehicle destination charges. The court held that the amended complaint did not materially change the theory previously rejected, dismissed the claims with prejudice, and ordered the case closed.

Holdings

1. The first amended complaint did not plausibly allege a claim because it retained the same theory that the fully disclosed destination charge was deceptive merely because it included an undisclosed profit component, and the additional allegations did not materially alter that theory.
2. Dismissal of the first amended complaint was with prejudice because plaintiffs had a full and fair opportunity to state a plausible claim and had been advised that further amendment would likely not be allowed.

Questions Presented

1. Whether the first amended complaint plausibly alleged California consumer-protection claims based on FCA's disclosure of destination charges without separately identifying a profit component.
2. Whether dismissal should be with prejudice after plaintiffs had already received an opportunity to amend.

Disposition

dismissed