Facts

Alisa Neal filed a class action against NaturalCare Inc. NaturalCare is a manufacturer who sold "RingStop" products, which were treatments for the symptoms of tinnitus.

Neal filed for bankruptcy two months after she filed her lawsuit. However, Neal did not list her class action on her bankruptcy schedules, nor did she tell the court presiding over her pending class action that she had filed for bankruptcy. Shortly thereafter, Neal filed an amended complaint and moved for class certification, which was granted in December 2012.

PLAINTIFF'S CONTENTIONS:
Neal argued that NaturalCare's products had never been scientifically proven to be able to treat tinnitus, and did not do what NaturalCare claimed they did. She further asserted that NaturalCare's statements and advertisements were false and misleading, causing customers to wrongly believe that RingStop products could effectively treat tinnitus. She asserted causes of action for violations of the Consumer Legal Remedies Act, California's False Advertising Law, and California's Unfair Competition Law.

Neal argued that her class action should be allowed to proceed with a new class representative despite her bankruptcy because her class obtained its own separate legal status when it was certified.

DEFENDANT'S CONTENTIONS:
NaturalCare argued that Neal lost ownership of her class action claims when she filed for bankruptcy and did not have standing to pursue those claims when she filed her amended complaint and moved for class certification. NaturalCare argued that because Neal did not have standing when she moved for class certification, the court's decision to grant certification was legally void and the class never obtained its own separate legal status.

Result

The court decertified Neal's class and dismissed the class' claims without prejudice. The court dismissed Neal's claims with prejudice.