Troutman Sanders Secures Dismissal of Putative Class Action for Costco
ATLANTA – Troutman Sanders LLP successfully represented Costco Wholesale Corporation in obtaining a dismissal of a putative class action filed in the United States District Court for the Southern District of New York.
The plaintiffs brought claims for deceptive acts or practices under Massachusetts, New York, and Pennsylvania statutory law relating to Costco’s sale of Kirkland Signature Premium Chunk Chicken Breast. In particular, they alleged that the product’s label violated the regulations of the Poultry Products Inspection Act and that the product’s packaging and unit pricing were otherwise misleading.
Costco moved to dismiss the complaint, noting that the claims were expressly and impliedly preempted, and that no reasonable consumer would be misled by the label and packaging of the product. The Southern District of New York granted Costco’s motion. After soliciting the views of the United States Department of Agriculture as amicus, the United States Court of Appeals for the Second Circuit affirmed the district court’s dismissal.
The Troutman Sanders team advising Costco in the matter included Bill Withrow, Rich O’Leary, Lindsey Mann and Alex Smith. When faced with high-stakes class-action litigation, clients regularly depend on Troutman Sanders’ national defense team for the time-tested solutions and guidance they need to achieve the best possible outcomes. The firm’s experienced and strategic approach helps clients efficiently resolve disputes while also managing the unique risk of class actions.
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