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Zeltiq Aesthetics, Inc. v. BTL Industries, Inc.

Citations: 32 F. Supp. 3d 1088; 2014 U.S. Dist. LEXIS 40402; 2014 WL 1245222Docket: Case No. 13-cv-05473-JCS; Dkt. No. 18

Court: District Court, N.D. California; March 25, 2014; Federal District Court

Narrative Opinion Summary

In this case, Zeltiq Aesthetics, Inc. brought legal action against BTL Industries, Inc. and Saturn Consulting LLC, alleging false advertising regarding BTL's Vanquish device, which was marketed for fat reduction despite lacking FDA clearance for such use. The action is based on the Lanham Act and state unfair competition laws in California and Massachusetts. Zeltiq's CoolSculpting device, which competes with Vanquish, is FDA-cleared for specific fat reduction uses, and Zeltiq claims BTL's advertising misleads consumers about Vanquish's FDA clearance. The court denied Zeltiq's motion for a preliminary injunction, citing insufficient evidence of irreparable harm and failure to demonstrate that BTL's statements were literally false or misleading under the Lanham Act. Although there is evidence of general deception, Zeltiq did not prove that physicians were misled into believing Vanquish was FDA-cleared for fat reduction. The court acknowledged the significance of off-label use in medical devices and determined that Zeltiq did not establish a likelihood of success on the merits of its claims. Additionally, defendants' argument of federal preemption under the FDCA was deemed premature for resolution. Consequently, Zeltiq's claims are set to proceed without preliminary injunctive relief.

Legal Issues Addressed

Evidence of Misleading Advertising Claims

Application: Zeltiq failed to provide evidence of literally false statements by defendants but suggested that defendants' promotions implied FDA clearance for fat reduction.

Reasoning: Zeltiq did not present evidence of literally false statements but indicated that Defendants' promotions could misleadingly imply FDA clearance for fat reduction.

False Advertising under the Lanham Act

Application: The plaintiff claims that the defendants' marketing of the Vanquish device as FDA-approved for fat reduction is misleading and violates the Lanham Act.

Reasoning: Zeltiq's primary allegation is that the Defendants' marketing of the Vanquish device is misleading and thus violates both the Lanham Act and state unfair competition laws.

FDA Clearance and Device Misbranding under California Law

Application: Zeltiq argues that the defendants misbranded the Vanquish device by advertising it for unapproved uses, but the court found no basis for this claim under California Health and Safety Code Section 111550.

Reasoning: Zeltiq alleges that BTL violated California's Unfair Competition Law (UCL) by selling the Vanquish device without 510(k) clearance, as required by California Health and Safety Code Section 111550.

Preliminary Injunction Standards

Application: The court denied Zeltiq's motion for preliminary injunction due to insufficient evidence of irreparable harm and lack of clear demonstration of likely irreparable injury.

Reasoning: The Court denied its Motion for Preliminary Injunction due to insufficient evidence of irreparable injury.

Unfair Competition under California and Massachusetts Law

Application: Zeltiq alleges that defendants' deceptive advertising violates California’s Business and Professions Code § 17200 and Massachusetts General Law ch. 93A.

Reasoning: The remaining three claims are grounded in unfair competition laws from California and Massachusetts, specifically alleging that the Defendants' deceptive advertising violates California’s Business and Professions Code § 17200 (the UCL) and Massachusetts General Law ch. 93A.