Whole Foods Overcharging Class Action Lawsuit Revived by 2nd Circ.

The 2nd U.S. Circuit Court of Appeals last week revived a class action lawsuit alleging Whole Foods overcharges customers for prepackaged foods, finding that the New York federal court handling the case erred when it determined the plaintiffs failed to plausibly allege they suffered an injury.

The Whole Foods class action lawsuit was dismissed by U.S. District Judge Paul Engelmayer last year for lack of Article III standing. The judge determined plaintiffs Sean John and Joseph Bassolino failed to allege they suffered “concrete and particularized” harm.

Plaintiff John subsequently appealed the Whole Foods class action lawsuit and asked the 2nd Circuit to review the case. He argued that his regular purchases of cheese and cupcakes from Whole Foods supported his claims that he had been harmed by Whole Foods’ conduct.

According to John, he does not need to prove he purchased a prepackaged product that weighed less than listed on the label. He also says he does not need to prove Whole Foods mislabeled the products. He claims it is only necessary to show that it is plausible that he and the putative Class Members were affected by purchasing products from Whole Foods that were underweight.

John points to a 2015 press release over the findings by the New York Department of Consumer Affairs (DCA) that Whole Foods engaged in a pattern of overpricing. The agency tested the packaging of 80 different types of prepackaged products at Whole Foods and found that all of the products included labels with inaccurate rates.

Further, the DCA investigation reportedly found 89 percent of the prepackaged foods tested did not meet federal standards for the maximum amount the listed weight on a package can deviate from the actual weight. Whole Foods has reportedly confirmed that cheese and cupcakes, the products John says he purchased, were among the prepackaged products the DCA determined included labels that overstated the products’ weight.

The 2nd Circuit notes that John should not be required to prove the accuracy of his claims during the pleading stage; he simply needs to allege facts that make his alleged injury plausible. Therefore, the appeals court ruled that Judge Engelmayer erred by dismissing the Whole Foods class action lawsuit for lack of standing and remanded the case back to the lower court.

The Whole Foods class action lawsuit was filed in June 2015 and accused the natural foods grocer of mislabeling the weight of prepackaged foods, including baked goods, dairy products and meat. Whole Foods allegedly overstated the weight of the prepackaged products and therefore overcharged customers for the products.

John seeks to represent a Class of consumers who purchased at least one of 14 different types of prepackaged foods sold at a New York Whole Foods store. He seeks compensatory and punitive damages, injunctive relief, attorneys’ fees and costs.

John is represented by Douglas G. Blankinship of Finkelstein Blankinship Frei-Pearson & Garber LLP.

The Whole Foods Overcharging Class Action Lawsuit is Sean John v. Whole Foods Market Group Inc., Case No. 16-986, in the 2nd U.S. Circuit Court of Appeals.