Klosowski v. FPG Labs, LLC
United States District Court for the District of Delaware
Klosowski v. FPG Labs, LLC
Trial Court Opinion
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
RACHEL KLOSOWSKI, et al., )
)
Plaintiffs, )
)
v. ) C.A. No. 24-1210 (MN)
)
FPG LABS, LLC d/b/a OVATION )
FERTILITY, US GENETIC LAB, LLC )
d/b/a OVATION GENETICS, et al., )
)
Defendants. )
MEMORANDUM OPINION
Russell D. Paul, BERGER MONTAGUE PC, Wilmington, DE; Shanon J. Carson, BERGER MONTAGUE
PC, Philadelphia, PA; Zoe Seaman-Grant, BERGER MONTAGUE, PC, Chicago, IL; Allison S.
Freeman, CONSTABLE LAW P.A., Paula S. Bliss, JUSTICE LAW COLLABORATIVE LLC, No. Easton,
MA – Attorneys for Plaintiffs
Ethan H. Townsend, Anna Fosberg Martin, MCDERMOTT WILL & EMERY LLP, Wilmington, DE;
Daniel R. Campbell, Brigid McCarthy, Chelsea Mounayer, MCDERMOTT WILL & EMERY LLP,
Chicago, IL – Attorneys for Defendants
September 3, 2025
Wilmington, Delaware
NOREIKBA, U.S. DISTRICT JUDGE:
Presently before the Court is Defendants’ motion to dismiss the Class Action Complaint
(“Complaint”) for failure to state a claim. (D.I. 16, 18). For the reasons set forth below, the Court
will GRANT the motion.
I. BACKGROUND
A. The Parties and PGT-A Testing
This is a putative class action initiated by 9 individuals: Rachel and Adam Klosowski,
Janine and Jonathan Carlin, Laura Mendoza, Michelle Schafer, Dori Shick, Soupharack
Vannasing, and Lauren Teverbaugh (“Plaintiffs” or “Named Plaintiffs”). (D.I. 1 9 28-36).
According to the Complaint, each of the Named Plaintiffs “received fertility treatment” and
purchased “preimplantation genetic testing for aneuploidy,” known as “PGT-A” or “PGT-A
testing.” (Ud. J 1, 28-36). PGT-A is “an add-on to the IVF process and purports to screen embryos
for chromosomal abnormalities.” (Ud. ¥ 9).
Plaintiffs claim they suffered economic losses after buying PGT-A testing from Defendants
based on “false, deceptive, unfair, and misleading advertising, marketing, and/or promotion”
between November 2020 and October 2023 (“the Class Period”). Ud. J 1, 28-36, 293-313). They
bring this lawsuit on behalf of themselves and “all persons in the United States who have purchased
PGT-A testing from Defendants,” and seek to represent a nationwide class and five state subclasses
from California, Louisiana, Nevada, North Carolina, and Texas. (/d. {fj 314-320).
Defendants FPG Labs, LLC and US Genetic Lab, LLC are Delaware limited liability
companies headquartered in Brentwood, Tennessee (together, “Ovation”). (Ud. 9 37-38).
According to the Complaint, Ovation is a “national leading network of fertility laboratories
providing leading-edge treatment.” (/d.). Defendant US Fertility, LLC (with Ovation,
“Defendants”) is a Delaware limited liability company headquartered in Rockville, Maryland.
(Id. ¶ 39).
“With respect to PGT-A conducted by Ovation, IVF clinics perform a biopsy and send a
small number of cells from the embryo to Ovation or an affiliate laboratory who performs the
PGT-A testing and provides results to the customer and their clinic.” (Id. ¶ 10). The Complaint
alleges that the test results “determine which embryos are ‘euploid’ or best suited for implantation
and which embryos are ‘aneuploid’ or abnormal and not suited for implantation.” (Id.).
B. The Complaint’s Allegations
Each of the Named Plaintiffs allegedly “purchased PGT-A testing from Ovation” during a
certain month and year during the putative Class Period, in reliance and “based upon the false,
deceptive, and misleading statements” and material omissions made by Ovation, “including that
PGT-A is greater than 98% accurate, increases the chance of pregnancy, decreases the chance of
miscarriage, leads to a higher chance of a healthy pregnancy, and reduces the time to pregnancy.”
(Id. ¶¶ 293-313). The Complaint further alleges that each Named Plaintiff paid a certain price for
PGT-A, “which they would not have purchased absent the false and misleading misrepresentations
and omissions.” (Id.). As a result, the Complaint says, “Plaintiffs suffered direct and ascertainable
economic losses” and “were harmed by paying for an unproven an unreliable test.” (Id. ¶¶ 290-
92). Notably, none of the Named Plaintiffs allege that the PGT-A testing they bought failed to
work specifically for them. (See id. ¶¶ 293-313).
C. Procedural History
Plaintiffs initiated this action on October 31, 2024, asserting 13 claims for violations of
state consumer protection statutes, common law fraud, breach of warranty, and unjust enrichment.
(D.I. 1). On January 6, 2025, Defendants moved to dismiss for lack of standing and failure to state
a claim. (D.I. 16, 18). Briefing on the motion was completed on March 12, 2025, and the Court
held oral argument on July 28, 2025. (D.I. 17, 19, 26, 27, 28, 29, 36).
The Court now addresses the motion.
II. LEGAL STANDARD
To have standing to sue, “[t]he plaintiff must have (1) suffered an injury in fact, (2) that is
fairly traceable to the challenged conduct of the defendant, and (3) that is likely to be redressed by
a favorable judicial decision.” Spokeo, Inc. v. Robins, 578 U.S. 330, 338 (2016); Huber v. Simon’s
Agency, Inc., 84 F.4th 132, 144 (3d Cir. 2023). An injury in fact exists if a plaintiff has suffered
“[(1)] an invasion of a legally protected interest which is [(2)] concrete and particularized, and
[(3)] actual or imminent, not conjectural or hypothetical.” Lujan v. Defs. of Wildlife, 504 U.S. 555,
560 (1992) (internal citations omitted); Mielo v. Steak ‘n Shake Operations, Inc., 897 F.3d 467,
478 (3d Cir. 2018). “The burden to establish standing rests with the plaintiffs.” Finkelman v. Nat’l
Football League, 810 F.3d 187, 194 (3d Cir. 2016).
III. DISCUSSION
The Complaint alleges that each of the Named Plaintiffs “purchased PGT-A testing from
Ovation” during the Class Period, in reliance and “based upon the false, deceptive, and misleading
statements” and material omissions made by Ovation, “including that PGT-A is greater than 98%
accurate, increases the chance of pregnancy, decreases the chance of miscarriage, leads to a higher
chance of a healthy pregnancy, and reduces the time to pregnancy.” (D.I. 1 ¶¶ 293-313).
Furthermore, each Named Plaintiff alleges they paid a certain price for PGT-A, which they “would
not have purchased” absent the false and misleading misrepresentations and omissions, and, as a
result, “suffered direct and ascertainable economic losses” and “were harmed by paying for an
unproven and unreliable test.” (Id. ¶¶ 290-92). In essence, Plaintiffs claim they overpaid for a
product that did not work as it was supposed to – despite Defendants’ representations that it did.
“This is known as the benefit-of-the-bargain theory of injury.” Huertas v. Bayer US LLC,
120 F.4th 1169, 1174 (3d Cir. 2024).
As the Third Circuit has recently said on several occasions in the benefit-of-the-bargain
context, “[a] plaintiff alleging an economic injury as a result of a purchasing decision must do
more than simply characterize that purchasing decision as an economic injury. The plaintiff must
instead allege facts that would permit a factfinder to determine, without relying on mere conjecture,
that the plaintiff failed to receive the economic benefit of her bargain.” In re Johnson & Johnson
Talcum Powder Litig., 903 F.3d 278, 281 (3d Cir. 2018) (“J&J”); Thorne v. Pep Boys Manny Moe
& Jack Inc., 980 F.3d 879, 886 (3d Cir. 2020); Huertas, 120 F.4th at 1176-77. Many other Circuits
have held the same. See, e.g., In re Recalled Abbott Infant Formula Prods. Liab. Litig.,
97 F.4th 525, 531-32 (7th Cir. 2024); Johannessohn v. Polaris Indus. Inc., 9 F.4th 981, 988
(8th Cir. 2021); McGee v. S-L Snacks Nat’l, 982 F.3d 700, 706 (9th Cir. 2020). That yields “a
clear lesson: a plaintiff must do more than offer conclusory assertions of economic injury in order
to establish standing.” J&J, 903 F.3d at 285.
That is because “allegations that a product is [flawed] as to others are not relevant to
determining whether named plaintiffs have standing themselves.” Huertas, 120 F.4th at 1178
(citation modified); J&J, 903 F.3d at 289. Instead, once “Plaintiffs have plausibly alleged
economic injury, [the Court] must still determine whether they sufficiently alleged that their
products were defective[].” Huertas, 120 F.4th at 1178; Lujan, 504 U.S. at 563 (“[T]he ‘injury in
fact’ test requires more than an injury to a cognizable interest. It requires that the party seeking
review be himself among the injured.”) (citation omitted). “Otherwise, their claim that they
purchased a product worth less than the product for which they bargained necessarily fails, and
they are not entitled to relief under the benefit-of-the-bargain theory.” Huertas, 120 F.4th at 1178;
Pineda v. Lake Consumer Prods., Inc., No. 24-1074 (JMG), 2024 WL 5001928, at *3 (E.D. Pa.
Dec. 5, 2024) (“Plaintiff must plausibly allege that her product was defective[].”).
Here, the Complaint provides studies that purport to undermine the scientific efficacy of
Ovation’s PGT-A testing and the representations that it “increases the chance of pregnancy,
decreases the chance of miscarriage, [and] leads to a higher chance of a healthy pregnancy.”
(D.I. 1 ¶¶ 293, 296, 299, 302, 305, 308, 311). But, as in the Third Circuit’s seminal Johnson &
Johnson decision, the Complaint “does not allege that [the Named Plaintiffs’ testing] failed to
adequately perform any of these functions.” J&J, 903 F.3d at 281 (emphasis added); Pep Boys,
980 F.3d at 886 (“[M]issing were allegations that the product was unsafe as to [Plaintiff].”).
“To be clear, other than the short proclamation that ‘in [a specific month and year],’ [each Named]
Plaintiff purchased [PGT-A for a certain price], Plaintiff[s] provide[] no further allegations about
[their] individual purchase[s].” Grodnick v. Johnson & Johnson, No. 24-2616 (MAS), 2024 WL
5056411, at *3 (D.N.J. Dec. 10, 2024). That is fatal for the standing inquiry.
None of the Named Plaintiffs allege, for example, that they failed to become pregnant,
suffered a miscarriage, or experienced a medically compromised pregnancy – notwithstanding
Ovation’s alleged marketing statements that PGT-A mitigates all of those problems. Indeed,
Plaintiffs’ conclusory assertions of harm are all the more implausible here given that some of these
adverse outcomes are directly in conflict with and mutually exclusive of one another. See Lewis
v. Gov’t Emps. Ins. Co., 98 F.4th 452, 460-61 (3d Cir. 2024); Finkelman, 810 F.3d at 202
(“Insofar as we construe the complaint to allege that [plaintiff] paid more for his [product] than he
would have absent [defendant’s] alleged misconduct, that contention is a ‘bald assertion’
unsupported by well-pleaded facts.”); Cook v. GameStop, Inc., No. 23-2574, 2025 WL 2250261,
at *5 (3d Cir. Aug. 7, 2025) (“[Plaintiff] does not allege a kind of harm sufficient for standing.
This conclusion is not a premature merits determination, but an assessment of the plausibility of
her alleged injury as it pertains to standing.”).
Instead, Plaintiffs’ “theory of recovery is simply that [they] suffered an economic injury
by purchasing improperly marketed [testing].” J&J, 903 F.3d at 282; Huertas, 120 F.4th at 1176.
That is illustrated by the Class Action Allegations, which purport to bring this lawsuit “on behalf
of all persons in the United States who have purchased PGT-A testing from Defendants,” with no
mention of harm whatsoever. (D.I. 1 ¶ 314). Thus, because the Complaint lacks “any allegation
that [Plaintiffs] received a product that failed to work for its intended purpose or was worth
objectively less than what one could reasonably expect, [they] ha[ve] not demonstrated a concrete
injury-in-fact.” Koronthaly v. L’Oreal USA, Inc., 374 F. App’x 257, 259 (3d Cir. 2010).
Accordingly, the Court finds that Plaintiffs have failed to adequately allege Article III
standing and will grant the motion to dismiss on that basis.1
1 Defendants also contend that “Plaintiffs lack standing to assert claims outside their home
states.” (D.I. 19 at 7) (capitalization omitted). As the Court has discussed in two recent
opinions on this issue, courts in this Circuit are split as to whether such a challenge may be
properly heard as a standing issue on a motion to dismiss, or whether class certification is
the correct vehicle for the analysis. Third Circuit precedent appears to permit either
approach. See Costa v. Whirlpool Corp., No. 24-188 (MN), 2025 WL 885245, at *12-13
(D. Del. Mar. 21, 2025); Crowell v. FCA US LLC, No. 23-13 (MN), 2024 WL 4333088, at
*12 (D. Del. Sept. 27, 2024). As this Court explained in Costa, it is generally skeptical
that a plaintiff can maintain a state law cause of action across all fifty states given the
nuances in the law from jurisdiction to jurisdiction. 2025 WL 885245, at *13. Nonetheless,
because that inquiry is better settled at the class certification stage, the Court declines to
dismiss those claims at this juncture. Plaintiffs should consider the foregoing if they choose
to amend.
IV. CONCLUSION
For the foregoing reasons, Defendants’ motions to dismiss the Class Action Complaint
(D.I. 16, 18) are GRANTED without prejudice. Pursuant to their request, Plaintiffs may attempt
to replead.2 (See D.I. 26 at 17-18; D.I. 27 at 16). An appropriate order will follow.
2 At oral argument, Plaintiffs acknowledged that they failed to state a class claim under the
Louisiana Unfair Trade Practices Act. (D.I. 36 at 48:6-12). That dismissal will be entered
with prejudice, given that the face of the Act does not permit class actions, see La. R. Stat.
§ 51:1409(A), and “[b]oth federal and state court jurisprudence confirms that private
individuals may not assert class actions under [the Act].” Landreneau v. Fleet Fin. Grp.,
197 F. Supp. 2d 551, 556-57 (M.D. La. 2002); Plaza 22, LLC v. Waste Mgmt. of Louisiana,
LLC, No. 13-618 (SDD), 2015 WL 1120320, at *2 (M.D. La. Mar. 12, 2015) (“Louisiana
courts have interpreted the [Act’s] language as a clear ban against class actions by private
persons.”) (internal quotation marks omitted); Montegut v. Williams Commc’ns, Inc.,
109 F. Supp. 2d 496, 498 (E.D. La. 2000) (“LUTPA claims may only be brought by an
individual, and cannot be brought in a representative capacity.”).
Reference
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