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In re Riddell Concussion Reduction Litigation
77 F. Supp. 3d 422
D.N.J.
2015
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Background

  • Riddell marketed three helmet models (Revolution, Revolution Speed, Riddell 360) claiming "concussion reduction technology" and at times a "31% reduction" versus traditional helmets; plaintiffs allege these claims are false and paid price premiums.
  • Plaintiffs are four individual purchasers and Cahokia School District asserting statewide subclasses under NJ, IL, FL, CA, and AZ consumer-protection statutes and related equitable counts; actions were consolidated for pretrial purposes.
  • Plaintiffs rely on studies (UPMC, Univ. of Wisconsin, Cleveland Clinic) and other reports (Biokinetics, FTC inquiry) to allege Riddell knew or should have known helmets do not meaningfully reduce concussions or are not superior to competitors.
  • Defendants moved to dismiss under Rules 8, 9(b), and 12(b)(6), arguing pleading deficiencies (lumping defendants, lack of particularity as to which statements each plaintiff saw, failure to plead falsity, causation, and ascertainable loss) and that some claims lack standing.
  • The Court found Rule 8 satisfied as to notice for related corporate defendants, but dismissed the amended complaint for failure to meet Rule 9(b) particularity and for implausibility under Rule 12(b)(6); dismissal was without prejudice except the ICFA claim by Cahokia School District (dismissed with prejudice for lack of standing).

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Rule 8 sufficiency (group pleading against related entities) Complaint gives fair notice that all named, related Riddell entities participated in design, marketing, and sales Plaintiffs improperly lump defendants together without specifying each entity's role Court: Rule 8 satisfied — related entities, same counsel, concerted conduct alleged gives adequate notice
Rule 9(b) particularity for fraud-based consumer claims Plaintiffs allege exposure to Riddell marketing and reliance leading to premium purchases Plaintiffs fail to identify which statements each plaintiff saw, when, where, or what specific statements were false Court: Rule 9(b) not satisfied — pleadings lack required specificity; dismissal warranted
Rule 12(b)(6) plausibility and falsity theory Plaintiffs argue studies and reports show helmets are no better or not relatively better, supporting falsity of Riddell claims Defendants: plaintiffs’ theory is inconsistent; studies do not clearly establish falsity of specific advertising claims Court: Complaint implausible — unclear whether claim is that no helmet reduces concussions or that Riddell’s helmets lack the claimed 31% or are not superior to contemporaries; dismissal without prejudice to amend
Statutory injury / ascertainable loss (NJ & FL) and standing (IL) Plaintiffs allege payment of a "price premium" and economic harm from receiving a less valuable product Plaintiffs fail to allege purchase price, comparable product price, where purchased, or quantify loss; school district lacks ICFA standing Court: NJ and FL ascertainable-loss allegations insufficient (dismiss without prejudice); Cahokia’s ICFA claim dismissed with prejudice for lack of standing

Key Cases Cited

  • Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (pleading must be plausible to survive Rule 12(b)(6))
  • Ashcroft v. Iqbal, 556 U.S. 662 (legal conclusions insufficient; plausibility standard)
  • Seville Indus. Mach. Corp. v. Southmost Mach. Corp., 742 F.2d 786 (false statements/fraud require particularity under Rule 9(b))
  • Frederico v. Home Depot, 507 F.3d 188 (Rule 9(b) applied to consumer-fraud claims in Third Circuit)
  • Phillips v. County of Allegheny, 515 F.3d 224 (Rule 8 requires some specificity to link allegations to particular defendants)
  • Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097 (Rule 9(b) requires identification of specific misrepresentations, time, place, and content)
  • Board of Education of City of Chicago v. A, C & S, Inc., 131 Ill.2d 428 (Illinois Supreme Court: school districts lack standing under ICFA)
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Case Details

Case Name: In re Riddell Concussion Reduction Litigation
Court Name: District Court, D. New Jersey
Date Published: Jan 15, 2015
Citation: 77 F. Supp. 3d 422
Docket Number: Civil Action No. 13-7585 (JBS/JS)
Court Abbreviation: D.N.J.