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Hadley Et Al. V. Kellogg Sales Company

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Hadley Et Al. V. Kellogg Sales Company Case 5:16-cv-04955-LHK Document 324 Filed 10/21/19 Page 1 of 123 1 THE LAW OFFICE OF JACK FITZGERALD, PC JACK FITZGERALD (SBN 257370) 2 [email protected] 3 TREVOR M. FLYNN (SBN 253362) [email protected] 4 MELANIE PERSINGER (SBN 275423) 5 [email protected] Hillcrest Professional Building 6 3636 Fourth Avenue, Suite 202 7 San Diego, California 92103 Phone: (619) 692-3840 8 Fax: (619) 362-9555 9 JACKSON & FOSTER, LLC 10 SIDNEY W. JACKSON, III (pro hac vice) 75 St. Michael Street 11 Mobile, Alabama 36602 12 Phone: (251) 433-6699 Fax: (251) 433-6127 13 Counsel for Plaintiffs 14 15 UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA 16 17 STEPHEN HADLEY, MELODY 18 DIGREGORIO, ERIC FISHON, KERRY AUSTIN, and NAFEESHA MADYUN on Case No.: 5:16-cv-04955-LHK (HRL) 19 behalf of themselves, all others similarly situated, and the general public, 20 CLASS ACTION 21 Plaintiffs, THIRD AMENDED CLASS ACTION 22 COMPLAINT v. 23 DEMAND FOR JURY TRIAL 24 KELLOGG SALES COMPANY, 25 Defendant. 26 27 28 Hadley et al. v. Kellogg Sales Company, Case No.: 5:16-cv-04955-LHK (HRL) THIRD AMENDED CLASS ACTION COMPLAINT Case 5:16-cv-04955-LHK Document 324 Filed 10/21/19 Page 2 of 123 1 TABLE OF CONTENTS 2 INTRODUCTION .................................................................................................................... 1 3 THE PARTIES ......................................................................................................................... 1 4 5 JURISDICTION AND VENUE .............................................................................................. 2 6 FACTS ..................................................................................................................................... 2 7 8 A. There Has Been a Recent Rise in Human Sugar Consumption .......................... 2 9 B. The Body’s Physiological Response to Excess Sugar Consumption .................. 7 10 1. The Body’s Response to Glucose ............................................................. 7 11 2. The Body’s Response to Fructose ........................................................... 10 12 3. The Addiction Response ......................................................................... 11 13 14 C. There Has Been a Dramatic Rise in Obesity & Chronic Disease That Parallels the Rise in Human Sugar Consumption ............................................. 11 15 D. There is Substantial Scientific Evidence That Excess Sugar 16 Consumption Causes Metabolic Syndrome, Cardiovascular Disease, 17 Type 2 Diabetes, and Other Morbidity .............................................................. 13 18 1. Excess Sugar Consumption Causes Metabolic Syndrome ..................... 13 19 2. Excess Sugar Consumption Causes Type 2 Diabetes ............................. 16 20 3. Excess Sugar Consumption Causes Cardiovascular Disease ................. 20 21 4. Excess Sugar Consumption Causes Liver Disease ................................. 22 22 5. Excess Sugar Consumption Causes Obesity ........................................... 23 23 24 6. Excess Sugar Consumption Causes Inflammation ................................. 27 25 7. Excess Sugar Consumption Causes High Blood Triglycerides and Abnormal Cholesterol Levels ........................................................... 29 26 27 8. Excess Sugar Consumption is Associated with Hypertension................ 32 28 i Hadley et al. v. Kellogg Sales Company, Case No.: 5:16-cv-04955-LHK (HRL) THIRD AMENDED CLASS ACTION COMPLAINT Case 5:16-cv-04955-LHK Document 324 Filed 10/21/19 Page 3 of 123 1 9. Excess Sugar Consumption is Associated with Alzheimer’s Disease, Dementia, and Cognitive Decline ............................................. 34 2 3 10. Excess Sugar Consumption is Linked to Some Cancers ........................ 35 4 E. Based on the Scientific Evidence, Authoritative Scientific and Health Organizations Recommend Restricting Added Sugar Consumption to 5 Below 5% or 10% of Daily Calories ................................................................. 35 6 KELLOGG’S MARKETING & SALE OF HIGH-SUGAR CEREALS & BARS .............. 36 7 8 A. Kellogg’s Raisin Bran Cereals .......................................................................... 41 9 1. Raisin Bran .............................................................................................. 42 10 2. Raisin Bran Crunch ................................................................................. 44 11 B. Kellogg’s Frosted Mini-Wheats Cereals ........................................................... 46 12 1. Original ................................................................................................... 46 13 14 2. Maple Brown Sugar ................................................................................ 47 15 3. Strawberry ............................................................................................... 48 16 4. Blueberry ................................................................................................. 48 17 5. Big Bite – Original .................................................................................. 50 18 6. Little Bites – Chocolate ........................................................................... 51 19 7. Little Bites - Cinnamon Roll .................................................................... 51 20 8. Touch of Fruit in the Middle – Mixed Berry ........................................... 52 21 22 9. Touch of Fruit in the Middle – Raspberry .............................................. 54 23 10. Harvest Delights – Blueberry with Vanilla Drizzle and Cranberry with Yogurt Drizzle ............................................................... 55 24 25 C. Kellogg’s Smart Start – Original Antioxidant Cereal ....................................... 56 26 D. Kellogg’s Crunchy Nut Cereal .......................................................................... 58 27 E. Nutri-Grain Cereal Bars .................................................................................... 59 28 ii Hadley et al. v. Kellogg Sales Company, Case No.: 5:16-cv-04955-LHK (HRL) THIRD AMENDED CLASS ACTION COMPLAINT Case 5:16-cv-04955-LHK Document 324 Filed 10/21/19 Page 4 of 123 1 1. Apple Cinnamon ...................................................................................... 59 2 2. Blueberry ................................................................................................. 60 3 3. Strawberry ............................................................................................... 60 4 4. Cherry ...................................................................................................... 61 5 5. Mixed Berry ............................................................................................. 62 6 7 6. Strawberry Greek Yogurt ........................................................................ 62 8 F. Nutri-Grain Soft-Baked Breakfast Bars ............................................................ 63 9 1. Blueberry ................................................................................................. 63 10 2. Strawberry ............................................................................................... 64 11 3. Cherry ...................................................................................................... 64 12 4. Raspberry ................................................................................................ 65 13 14 5. Variety Pack ............................................................................................ 66 15 G. Nutri-Grain Oat & Harvest Bars ....................................................................... 66 16 1. Blueberry Bliss ........................................................................................ 66 17 2. Country Strawberry ................................................................................. 67 18 H. Nutri-Grain Harvest Hearty Breakfast Bars – Blueberry Bliss ......................... 68 19 KELLOGG’S UNLAWFUL ACTS & PRACTICES ............................................................ 69 20 21 A. Kellogg Marketed and Continues to Market Its Cereals and Bars with Health and Wellness Claims that are Deceptive in Light of the 22 Products’ High Added Sugar Content ............................................................... 69 23 1. Kellogg Affirmatively Misrepresents that Some High-Sugar 24 Cereals are “Healthy,” “Nutritious,” or “Wholesome” ........................... 69 25 2. Kellogg Affirmatively Misrepresents that Consuming Some of 26 its High-Sugar Cereals and Bars Will Promote Bodily Health, Prevention of Disease, or Weight Loss ................................................... 75 27 28 iii Hadley et al. v. Kellogg Sales Company, Case No.: 5:16-cv-04955-LHK (HRL) THIRD AMENDED CLASS ACTION COMPLAINT Case 5:16-cv-04955-LHK Document 324 Filed 10/21/19 Page 5 of 123 1 3. Even When Not Stating So Expressly, Kellogg Deceptively Suggests Its High-Sugar Cereals and Bars are Healthy .......................... 77 2 3 a. Kellogg Touts Its Products’ Whole Grain, Fiber, and Fruit Content to Distract From Their High Added Sugar 4 Content .......................................................................................... 77 5 b. In Representing that Many of Its High-Sugar Bars 6 Contain “No High Fructose Corn Syrup,” Kellogg Leverages Consumer Confusion to Obscure the Dangers 7 of the Bars’ Added Sugars ............................................................ 78 8 c. Kellogg
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