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Hadley Et Al. V. Kellogg Sales Company, Case No.: 5:16-Cv-04955

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Hadley Et Al. V. Kellogg Sales Company, Case No.: 5:16-Cv-04955 Case 5:16-cv-04955-LHK Document 376 Filed 03/10/21 Page 1 of 97 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) 353-0404 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, FOURTH 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) FOURTH AMENDED CLASS ACTION COMPLAINT Case 5:16-cv-04955-LHK Document 376 Filed 03/10/21 Page 2 of 97 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) FOURTH AMENDED CLASS ACTION COMPLAINT Case 5:16-cv-04955-LHK Document 376 Filed 03/10/21 Page 3 of 97 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 .............................. 36 7 8 A. Kellogg’s Raisin Bran Cereals .......................................................................... 39 9 1. Raisin Bran .............................................................................................. 39 10 2. Raisin Bran Crunch ................................................................................. 42 11 B. Kellogg’s Frosted Mini-Wheats Cereals ........................................................... 44 12 1. Original ................................................................................................... 44 13 14 2. Maple Brown Sugar ................................................................................ 45 15 3. Strawberry ............................................................................................... 46 16 4. Blueberry ................................................................................................. 46 17 5. Big Bite – Original .................................................................................. 48 18 6. Little Bites – Chocolate ........................................................................... 49 19 7. Little Bites - Cinnamon Roll .................................................................... 49 20 8. Touch of Fruit in the Middle – Mixed Berry ........................................... 50 21 22 9. Touch of Fruit in the Middle – Raspberry .............................................. 51 23 C. Kellogg’s Smart Start – Original Antioxidant Cereal ....................................... 53 24 KELLOGG’S UNLAWFUL ACTS & PRACTICES ............................................................ 56 25 A. Kellogg Marketed and Continues to Market Its Cereals with Health 26 and Wellness Claims that are Deceptive in Light of the Products’ 27 High Added Sugar Content ............................................................................... 56 28 ii Hadley et al. v. Kellogg Sales Company, Case No.: 5:16-cv-04955-LHK (HRL) FOURTH AMENDED CLASS ACTION COMPLAINT Case 5:16-cv-04955-LHK Document 376 Filed 03/10/21 Page 4 of 97 1 1. Kellogg Affirmatively Misrepresents that Some High-Sugar Cereals are “Healthy,” “Nutritious,” or “Wholesome” ........................... 56 2 3 2. Kellogg Affirmatively Misrepresents that Consuming Some of its High-Sugar Cereals Will Promote Bodily Health, Prevention 4 of Disease, or Weight Loss ..................................................................... 59 5 3. Even When Not Stating So Expressly, Kellogg Deceptively 6 Suggests Its High-Sugar Cereals are Healthy ......................................... 60 7 a. Kellogg Touts Its Products’ Whole Grain, Fiber, and 8 Fruit Content to Distract From Their High Added Sugar Content .......................................................................................... 60 9 b. Kellogg Deceptively Omits, Intentionally Distracts From, 10 and Otherwise Downplays the Cereals’ High Added 11 Sugar Content ............................................................................... 61 12 B. Kellogg Violates FDA and State Food Labeling Regulations .......................... 62 13 1. In Violation of State and Federal Regulations, Kellogg’s Health 14 and Wellness Statements are False, Misleading, and Incomplete .......... 62 15 2. Kellogg Violated Regulations Governing Health Claims ....................... 63 16 C. Kellogg Knows or Reasonably Should Know of the Strong Scientific 17 Evidence Demonstrating Its High-Sugar Cereals are Unhealthy to Consume, But Fails to Warn Consumers of the Known Dangers ..................... 64 18 19 D. The Foregoing Behaviors are Part of Kellogg’s Longstanding General Policy, Practice and Strategy of Marketing its High-Sugar Cereals as 20 Healthy in Order to Increase Sales and Profit ................................................... 66 21 E. Kellogg’s Policy and Practice of Marketing High-Sugar Cereals as 22 Healthy is Especially Harmful Because Consumers Generally Eat More than One Serving of Cereal at a Time, Which Kellogg Knows or 23 Reasonably Should Know ................................................................................. 67 24 PLAINTIFFS’ RELIANCE & INJURY ................................................................................ 68 25 26 A. Plaintiff Stephen Hadley.................................................................................... 68 27 B. Plaintiff Melody DiGregorio ............................................................................. 71 28 iii Hadley et al. v. Kellogg Sales Company, Case No.: 5:16-cv-04955-LHK (HRL) FOURTH AMENDED CLASS ACTION COMPLAINT Case 5:16-cv-04955-LHK Document 376 Filed 03/10/21 Page 5 of 97 1 C. Plaintiff Eric Fishon .......................................................................................... 71 2 D. Plaintiff Kerry Austin ........................................................................................ 73 3 E. Plaintiff Nafeesha Madyun ................................................................................ 75 4 CLASS ACTION ALLEGATIONS ...................................................................................... 78 5 6 CAUSES OF ACTION .......................................................................................................... 80 7 PRAYER FOR RELIEF ......................................................................................................... 91 8 9 JURY DEMAND ..................................................................................................................
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