ORDER & REASONS
Currently pending before this Court are Merck’s Motion for Judgment on the Pleadings (Rec. Doe. 63656) and Plaintiff Kenneth Walker’s Motion for Leave to Amend Complaints (Rec. Doc. 63713). The Court has heard oral argument, received supplemental briefing, and reviewed the briefs and the applicable law. The Court is now prepared to issue this Order and Reasons.
I. FACTUAL BACKGROUND
To put this matter in perspective, a brief review of this litigation is appropriate. This multidistrict products liability litigation involves the prescription drug Vioxx, known generieally as Rofecoxib. Merck, a New Jersey corporation, researched, designed, manufactured, marketed and distributed Vioxx to relieve pain and inflammation resulting from osteoarthritis, rheumatoid arthritis, menstrual pain, and migraine headaches. On May 20, 1999, the Food and Drug Administration approved Vioxx for sale in the United States. Vioxx remained publicly available until September 30, 2004, when Merck withdrew it from the market after data from a clinical trial known as APPROVe indicated that the use of Vioxx increased the risk of cardiovascular thrombotic events such as myocardial infarction (heart attack) and ischemic stroke. Thereafter, thousands of individual suits and numerous class actions were filed against Merck in state and federal courts throughout the country alleging various products liability, tort, fraud, and warranty claims. It is estimated that 105 million prescriptions for Vioxx were written in the United States between May 20, 1999 and September 30, 2004. Based on this estimate, it is thought that approximately 20 million patients have taken Vioxx in the United States.
California was the first state to institute a consolidated state court proceeding on October 30, 2002. New Jersey and Texas soon followed suit, on May 20, 2003 and September 6, 2005, respectively. On February 16, 2005, the Judicial Panel on Multidistrict Litigation (“MDL”) conferred MDL status on Vioxx lawsuits filed in various federal courts throughout the country and transferred all such cases to this Court to coordinate discovery and to consolidate pretrial matters pursuant to 28 U.S.C. § 1407. See In re Vioxx Prods. Liab. Litig.,
One of the cases pending in the MDL is a suit brought by Kenneth Walker, a resident of the District of Columbia. Mr. Walker filed suit on August 4, 2005 pursuant to the D.C. False Claims Act, and the
II. PRESENT ISSUES
The Court has two related motions pending before it. First, Merck has moved to dismiss the Amended Complaint on a variety of grounds, including lack of standing under either Article III of the Constitution or the CPPA. Second, Plaintiff has moved for leave to file a Second Amended Complaint to address certain issues raised in Merck’s first motion and to add Rule 23 class allegations. Merck opposed the motion for leave to file, arguing futility on the basis of untimeliness as well as its original standing arguments. In an Order and Reasons dated May 9, 2012, the Court addressed certain of Merck’s arguments regarding timeliness and relation back of the proposed Second Amended Complaint. (Rec. Doc. 63822). However, the Court postponed ruling on the standing issues and granted the parties leave to file supplemental briefs with respect to the sufficiency of the allegations of the Second Amended Complaint. The parties have submitted supplemental briefs and the matter is now ripe for resolution.
In the present procedural posture, Merck contends that Walker, as the named Plaintiff, lacks Article III standing to bring a claim under the CPPA because he does not allege a sufficient injury and because he has not alleged a merchant-consumer transaction that falls within the scope of the Act.
Walker opposes the motion for judgment on the pleadings. He contends that the Second Amended Complaint states a claim is not legally futile, that he has alleged both an economic and statutory injury for the purposes of Article III standing, and that he has sufficiently alleged a consumer-merchant transaction.
III. LAW AND ANALYSIS
A. Standard on Motions to Amend and Motions to Dismiss
In this posture Plaintiff “may amend [his] pleading only with the opposing party’s written consent or the court’s leave. The court should freely give leave when justice so requires.” Fed.R.Civ.P. 15(a)(2). Thus, the Court has discretion to grant or deny motions for leave to amend. However, as the Fifth Circuit has explained,
“Discretion” may be a misleading term, for rule 15(a) severely restricts the judge’s freedom.... It evinces a bias in favor of granting leave to amend. The policy of the federal rules is to permit liberal amendment to facilitate determination of claims on the merits and to prevent litigation from becoming a technical exercise in the fine points of pleading. Thus, unless there is a substantial reason to deny leave to amend, the discretion of the district court is not broad enough to permit denial.
Dussouy v. Gulf Coast Inv. Corp.,
The Court may deny leave to amend a pleading if “the movant has acted in bad faith or with a dilatory motive, granting the motion would cause prejudice, or amendment would be futile.” E.g., Jebaco, Inc. v. Harrah’s Operating Co.,
In assessing a motion to dismiss for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6), “all well-pleaded facts are viewed in the light most favorable to the plaintiff, but plaintiffs must allege facts that support the elements of the cause of action in order to make out a valid claim.” City of Clinton v. Pilgrim’s Pride Corp.,
B. Article III Standing
It is abecedarian that this Court’s jurisdiction, granted by Article III of the Constitution, reaches only justiciable cases and controversies. Lujan v. Defenders of Wildlife,
“First, the plaintiff must have suffered an “injury in fact”-—an invasion of a legally protected interest which is (a) concrete and particularized, and (b) actual or imminent, not “ ‘conjectural’ or ‘hypothetical.’ ” Second, there must be a causal connection between the injury and the conduct complained of—the injury has to be “fairly traceable to the challenged action of the defendant, and not the result of the independent action of some third party not before the court.” Third, it must be “likely,” as opposed to merely “speculative,” that the injury will be redressable by a favorable decision.”
Id. at 560-61,
The legally protected interest which, if invaded, creates standing to sue can take many forms. Alleged injury to pecuniary or economic interests undoubtedly qualifies as a concrete and particularized injury in fact for standing purposes. See, e.g., Cole v. Gen. Motors Corp.,
The parties dispute whether Plaintiff has alleged a sufficient injury to his economic or statutory interests for the pur
1) Standing Cases Cited by the Parties
Merck relies primarily on Rivera v. Wyeth-Ayerst Laboratories,
In Williams v. Purdue Pharma, patients who were prescribed Oxycontin filed suit against the manufacturer pursuant to the CPPA, alleging deceptive advertising regarding the duration and addictiveness of the painkiller (but not that the plaintiffs had those problems with the drug). See
Merck also cites Hoyte v. Yum! Brands, Inc., in which a plaintiff doctor filed suit against the seller of Kentucky Fried Chicken, alleging that it violated the CPPA by failing to disclose the presence of trans fats in fried chicken sold in the District of Columbia.
In opposition, Plaintiff cites Grayson v. AT & T Corp.,
In Shatv, a group of differently-situated D.C. individuals and entities filed suit against a hotel chain.
CSIS has standing. It used its own funds to pay for stays at Marriott’s Russian hotels, and suffered pecuniary harm as a result of Marriott’s pricing practices. See Ciba-Geigy Corp. v. EPA801 F.2d 430 , 438 n. 10 (D.C.Cir.1986) (“[E]conomic loss clearly constitutes a distinct and palpable injury ....”) (internal quotation marks omitted). Damages under the CPPA would remedy that loss. Article III requires no more.
Id. at 1042 (emphasis added). But two individual plaintiffs did not suffer pecuniary harm because their employers paid for the hotel stays. See id. Instead, those plaintiffs argued that they “suffered a legally cognizable injury because Marriott invaded their interest in being free from improper trade practices, an interest protected under the CPPA.” Id. The circuit recognized that violation of a statute “can create the particularized injury required by Article III,” but “only when an individual right has been conferred on a person by statute.” Id. (quotation omitted). Analyzing the scope of the CPPA, the court held that the plaintiffs’ business travel did not constitute “consumer transactions within the meaning of the [CPPA]”; because they did not have rights under the CPPA, they did not have Article III standing. See id. at 104344.
Plaintiff also refers to Silvious v. Snapple Beverage Corp., in which the plaintiff alleged that he had purchased Snapple beverages which were marketed as “all natural,” but actually contained high fructose corn syrup. See
With this array of authorities in mind, the Court will turn to whether Plaintiff has alleged either an economic injury or a statutory injury for the purposes of Article III standing.
2) Economic Injury
Merck, relying on Rivera and Williams, contends that simply purchasing a product is not an economic injury that generates standing or a justiciable case in controversy. It argues that “[w]ithout alleging that a product failed to perform as advertised, a plaintiff has received the benefit of his bargain and has no basis to recover purchase costs.” Williams,
in response, Plaintiff argues that he has alleged an economic injury through asserting that he paid for Vioxx out-of-pocket but would not have if Merck had not misrepresented its safety profile. Plaintiff cites Grayson and Shaw for the proposition that economic injury such as overpayment creates standing under the CPPA.
The Court has reviewed the authorities cited by the parties and finds little to support Plaintiffs theory of economic injury. Grayson did not analyze economic injury at all. See
In short, Plaintiff has not cited authorities holding that circumstances such as these give rise to an economic injury. In light of that dearth, as well as the persuasive reasoning in Williams and Rivera with respect to the standing requirements for an economic injury, the Court concludes that merely purchasing a drug— which in fact helped Plaintiff—does not generate an economic injury giving rise to Article III standing and Plaintiff has not alleged a concrete, particularized injury in fact to his economic interests.
3) Statutory Injury
Merck argues that Plaintiff fails to allege a statutory injury giving rise to Article III standing for two reasons. First, Merck argues that even if it did violate the CPPA, Plaintiff still fails to allege an additional distinct injury to himself. Second, Merck argues that even if mere violation of a right granted by the CPPA can be a statutory injury that creates standing, Plaintiff personally has not alleged that his rights under the CPPA were violated by anything Merck did. Merck relies on Williams, in which the court found no statutory injury because the plaintiffs did not allege that they were “in any way deceived—or even saw—any of that advertising.”
In response, Plaintiff argues that Merck’s violation of “his statutory right to ‘the disclosure of information’ regarding Defendant’s dangerous misrepresentations” suffices to establish a statutory injury that creates Article III standing. (Rec. Doc. 63694 at 9). Plaintiff also argues that the Second Amended Complaint adequately alleges that Plaintiffs personal rights under the CPPA were directly violated by Merck’s conduct.
The analysis in Shaw v. Marriott is instructive. Shaw began by applying the well-settled principle that invasion of the “interest in being free from improper trade practices, an interest protected under the CPPA .... may constitute an injury-in-fact sufficient to establish standing, even though the plaintiff ‘would have suffered no judicially cognizable injury in the absence of [the] statute.’ ”
Shaw forecloses Merck’s first argument; the Shaw court assumed that mere violation of a statutory right would constitute an injury in fact and create Article III standing. See
Merck argues that the Second Amended Complaint is devoid of any meaningful factual allegation that Plaintiff or his doctor personally received any misleading communications or were deceived by any of Merck’s statements. In the absence of any connection between Merck’s conduct and Plaintiff as an individual, Merck submits that Plaintiff has not suffered any violation of his right under the CPPA and therefore has no statutory injury giving rise to Article III standing. In its supplemental memorandum, Merck cites the Third Circuit’s recent opinion in In re Schering Plough Corp. Intron/Temodar Consumer Class Action,
Plaintiff responds that he has sufficiently alleged factual material regarding Merck’s misleading marketing, the broad reach of that marketing to residents of the District of Columbia including Plaintiff, and his reliance on those misrepresentations. To support that contention, Plaintiff cites specific allegations of the Second Amended Complaint, including that Merck’s “concealment, suppression, omissions, misrepresentations, and practices had the tendency, capacity, and likelihood to deceive Plaintiff and the class,” and that the conduct “caused Plaintiff and the Class to suffer ascertainable losses” from purchasing Vioxx. (Second Am. Complt., ¶¶ 180-81).
The Court has reviewed the Amended Complaint and the proposed Second Amended Complaint. Plaintiff has alleged factual material regarding the nature and scope of Merck’s consumer- and physician-directed communications, as well as how those communications were misleading and violated the CPPA. But when it comes to connecting that conduct to himself, Plaintiff only alleges in general terms that those communications were directed towards consumers in the District
Plaintiff does allege one concrete fact regarding the Vioxx he personally took. According to the Second Amended Complaint, Plaintiffs initial Vioxx pills came in sample packages he received from his doctor, which he alleges “demonstrates that a Merck representative had visited” his doctor. (Second Amended Cmplt. at ¶ 151). But this piles speculation upon speculation; not only does it require an inference that the samples were delivered directly from a Merck representative to Plaintiffs doctor, it requires the additional conjectural leap that such a meeting included some of the allegedly violative misrepresentations. “Factual allegations must be enough to raise a right to relief above the speculative level,” and this allegation does not clear that threshold. Twombly,
Thus, the Court agrees with Merck that the Second Amended Complaint does not suffice to show a statutory injury giving rise to Article III standing. Whether the deficiency is characterized as a missing “causal connection between the injury and the conduct complained of,” Lujan,
IV. CONCLUSION
For the foregoing reasons, IT IS ORDERED that Merck’s Motion for Judgment on the Pleadings (Rec. Doc. 63656) is GRANTED and Plaintiffs Motion for Leave to Amend (Rec. Doc. 63713) is DENIED.
Notes
. For a more detailed factual background describing the events that took place before the inception of this multidistrict litigation, see In re Vioxx Prods. Liab. Litig.,
. Although not an Article III federal court, the District of Columbia Court of Appeals stated that it has "followed consistently the constitutional standing requirement embodied in Article III."
. The hotel chain advertised prices in U.S. dollars but, upon checkout, informed customers that "payment would be due in Russian rubles, which the hotels calculated at an exchange rate less favorable than the official rate set by the Central Bank of Russia," which resulted in overpayment from the quoted price of up to 18 percent. See id. at 1041.
. The Amended Complaint and Second Amended Complaint indicate that while taking Vioxx, Plaintiff "was treated for renal failure, high blood pressure, diabetes, and recurrent strokes.” (Second Am. Complt. at ¶ 155). However, nowhere in the pleadings or briefing does Plaintiff suggest that he attributes those conditions to Vioxx or that he is pursuing damages for personal injury on his behalf, or for any proposed class members.
. Plaintiff cites District Cablevision Ltd. P’ship v. Bassin as another example of economic injury, but the case is not particularly apposite. In -Bassin, plaintiffs alleged that their cable television provider illegally increased its late payment fee from $2.00 to $5.00.
. Possibly Stlvious, the case involving the "all-natural” beverage that contained high-fructose corn syrup, found an economic injury solely based on a misrepresentation of the quality of a product. See
. Merck also argues that the absence of statutory injury standing necessarily follows from the Fifth Circuit’s opinion in Rivera, but Riv
. Because Plaintiff has failed to articulate Article III standing, the Court need not address in detail Merck’s alternative argument that Plaintiff failed to allege a consumer-merchant transaction required by the CPPA. The authorities cited by the parties do not “fully answer[] the question of whether the relationship between defendants'—manufacturers who sell through intermediary pharmacies— and plaintiffs—acknowledged consumers-constitutes a consumer-merchant relationship within the coverage of the CPPA.” Williams v. Purdue Pharma Co.,
