Youngevity International, Corp. v. Smith
3:16-cv-00704
S.D. Cal.Jul 5, 2019Background
- Youngevity sued Wakaya and individual defendants under § 43(a) of the Lanham Act alleging multiple categories of false advertising (FAC subparts A–H), including income claims for distributors, founder/ownership statements about David Gilmour, origin and ingredient claims (curcumin content), product safety/health claims, pyramid-scheme allegations, and weight-loss claims.
- Wakaya moved for summary judgment as to the entire first cause of action; Youngevity moved for summary judgment on subpart G (curcumin content) and to exclude rebuttal expert Dr. Joshua Plant.
- The parties submitted competing expert reports and test data about curcumin percentages in Wakaya turmeric (Microbac results claimed ~5.96%; plaintiffs’ experts reported lower values ~2.45%–3.10%).
- The court applied Ninth Circuit Lanham Act standards (five-element test) and standard Rule 56 and Daubert/Kumho gatekeeping principles for expert testimony.
- The court denied summary judgment for Wakaya on subparts A (as to certain defendants), B, D, E, and G (curcumin), granted summary judgment for Wakaya on subparts C, F, and H, denied the motion to exclude Dr. Plant, and denied Youngevity’s motion for summary judgment on subpart G.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are income-earning statements by Wakaya and its Ambassadors actionable false advertising? | Income claims were literal, specific, and misrepresentative; likely to induce people to join and thus actionable under § 43(a). | Claims are puffery or not about products; insufficient proof of materiality or dissemination. | Denied summary judgment for defendants as to income claims (subpart A) for Wakaya, Barb Pitcock, Dave Pitcock, and Andre Vaughn; held claims are literally false or raise triable issues and are not mere puffery. |
| Are statements about David Gilmour’s role (founder/owner/CEO) false and actionable? | Advertising represented Gilmour as founder/owner/CEO; testimony shows he is not an owner/CEO; statements therefore literally false or misleading. | Wakaya contends a broader, colloquial use of “founder” and ongoing involvement; factual dispute over meaning of “founder.” | Denied defendants’ summary judgment on subpart B; genuine disputes exist (owner/CEO statements literally false; founder usage disputed). |
| Are Wakaya’s curcumin-content claims ("~6% vs <1%") false such that plaintiff is entitled to summary judgment? | Microbac data are the only basis for Wakaya’s high-percent claims; plaintiffs’ testing shows substantially lower curcumin—so claims are false. | Variability in natural product chemistry and differing test methods mean Wakaya’s Microbac result may be accurate for some batches; plaintiffs’ tests do not definitively refute Wakaya’s claim. | Denied Youngevity’s motion for summary judgment on subpart G and denied Wakaya’s summary judgment as to G; triable disputes remain about curcumin content and testing/variation. |
| Should Defendants’ rebuttal expert Dr. Joshua Plant be excluded? | Plant lacks specific turmeric/curcumin expertise, has potential conflict (manufacturer ownership), did not run independent tests—thus unreliable and biased. | Plant’s biomedical/analytical background is sufficient to rebut Rucker; alleged bias and lack of original testing go to weight, not admissibility. | Denied plaintiffs’ motion to exclude Plant under Rule 702/Daubert; challenges go to credibility and weight, not automatic exclusion. |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (summary judgment standard)
- Anderson v. Liberty Lobby, 477 U.S. 242 (U.S. 1986) (genuine dispute and evidence standard at summary judgment)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (U.S. 1986) (view inferences for nonmovant)
- POM Wonderful LLC v. Coca-Cola Co., 573 U.S. 102 (U.S. 2014) (Lanham Act claims allowed even when regulated by FDCA)
- Skydive Arizona, Inc. v. Quattrocchi, 673 F.3d 1105 (9th Cir. 2012) (five-element Lanham Act false advertising test; remedies discussion)
- Southland Sod Farms v. Stover Seed Co., 108 F.3d 1134 (9th Cir. 1997) (literal falsity and misleading-by-implication doctrines)
- Newcal Indus., Inc. v. Ikon Office Sol., 513 F.3d 1038 (9th Cir. 2008) (what constitutes commercial advertising/promotion)
- Daubert v. Merrell Dow Pharm., 509 U.S. 579 (U.S. 1993) (expert admissibility standard)
- Kumho Tire Co. v. Carmichael, 526 U.S. 137 (U.S. 1999) (court’s gatekeeping role for all expert testimony)
