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Case 2:16-cv-08338 Document 1 Filed 11/09/16 Page 1 of 32 Page ID #:1 1 Barbara A. Rohr (SBN 273353) Benjamin Heikali (SBN 307466) 2 FARUQI & FARUQI, LLP 10866 Wilshire Boulevard, Suite 1470 3 Los Angeles, CA 90024 Telephone: (424) 256-2884 4 Facsimile: (424) 256-2885 E-mail: [email protected] 5 [email protected] 6 Attorneys for Plaintiff Jason Saidian 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 Case No.: 2:16-cv-08338 JASON SAIDIAN, individually and on 11 behalf of all others similarly situated, CLASS ACTION COMPLAINT 12 1. Violation of California Civil Plaintiff, Code §1750, et seq. 13 2. Violation of California 14 v. Business and Professions Code § 17200, et seq. 15 KRISPY KREME DOUGHNUTS, INC., 3. Violation of California 16 Business and Professions Code § 17500, et seq. Defendant. 17 4. Breach of Express Warranty 18 5. Breach of Implied Warranty 19 6. Common Law Fraud 20 7. Intentional Misrepresentation 21 8. Negligent Misrepresentation 22 9. Breach of Contract 23 10. Quasi-Contract/Unjust 24 Enrichment/Restitution 25 JURY TRIAL DEMANDED 26 27 28 CLASS ACTION COMPLAINT Case 2:16-cv-08338 Document 1 Filed 11/09/16 Page 2 of 32 Page ID #:2 1 Plaintiff Jason Saidian (“Plaintiff”) by and through his counsel, brings this 2 Class Action Complaint against Krispy Kreme Doughnuts, Inc. (“Krispy Kreme” or 3 “Defendant”), on behalf of himself and all others similarly situated, and alleges upon 4 personal knowledge as to his own actions, and upon information and belief as to 5 counsel’s investigations and all other matters, as follows: 6 NATURE OF THE ACTION 7 1. Plaintiff brings this consumer protection and false advertising class 8 action lawsuit against Defendant, based on Defendant’s false and misleading business 9 practices with respect to the marketing and sale of its “Chocolate Iced Raspberry 10 Filled” and “Glazed Raspberry Filled” donuts (“Raspberry Products”), its “Maple 11 Iced Glazed” and “Maple Bar” donuts (“Maple Products”), and its “Glazed Blueberry 12 Cake” donuts and the “Glazed Blueberry Cake” donut holes (“Blueberry Products”) 13 at Krispy Kreme company and franchise stores (collectively referred to as the 14 “Products”).1 15 2. At all relevant times, Defendant has formulated, manufactured, 16 marketed, and sold the Raspberry Products under the descriptive product names 17 “Chocolate Iced Raspberry Filled” and “Glazed Raspberry Filled,” representing that 18 the Raspberry Products are filled with actual raspberry. 19 3. However, unbeknownst to consumers, the Raspberry Products uniformly 20 do not contain any raspberries. 21 4. At all relevant times, Defendant has formulated, manufactured, 22 marketed, and sold the Maple Products under the descriptive product names “Maple 23 Iced Glazed” and “Maple Bar,” representing that the Maple Products contain maple 24 syrup or maple sugar. 25 5. However, unbeknownst to consumers, the Maple Products uniformly do 26 not contain any maple syrup or maple sugar. 27 28 1 Defined and depicted further infra in paragraph 18-20. 2 CLASS ACTION COMPLAINT Case 2:16-cv-08338 Document 1 Filed 11/09/16 Page 3 of 32 Page ID #:3 1 6. At all relevant times, Defendant has formulated, manufactured, 2 marketed, and sold the Blueberry Products under the descriptive product names 3 “Glazed Blueberry Cake” with imitation blueberries that highly resemble actual 4 blueberries due to their round shape and blue color. 5 7. However, unbeknownst to consumers, the Blueberry Products uniformly 6 do not contain any blueberries. 7 8. Raspberry, maple, and blueberry are herein individually referred to as a 8 “Premium Ingredient” and collectively referred to as “Premium Ingredients.” 9 9. Plaintiff and other consumers purchased the Products, reasonably relying 10 on Defendant’s deceptive representation about the Products, and believing that each 11 of the Products contained its respective Premium Ingredient. Had Plaintiff and other 12 consumers known that the Products did not contain their Premium Ingredients, they 13 would not have purchased the Products or would have paid significantly less for the 14 Products. Therefore, Plaintiff and consumers have suffered injury in fact as a result 15 of Defendant’s deceptive practices. 16 10. Plaintiff brings this class action lawsuit on behalf of himself and all 17 others similarly situated. Plaintiff seeks to represent a California Subclass, a 18 California Consumer Subclass, and a Nationwide Class (defined infra in paragraphs 19 45-48) (together referred to as “Classes”). 20 11. Plaintiff, on behalf of himself and other consumers, is seeking damages, 21 restitution, declaratory and injunctive relief, and all other remedies the court deems 22 appropriate. 23 JURISDICTION AND VENUE 24 12. This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 25 1332(d)(2)(A) because this case is a class action where the aggregate claims of all 26 members of the proposed Classes are in excess of $5,000,000, exclusive of interests 27 and costs, and Plaintiff, as well as most members of the proposed Classes, which total 28 3 CLASS ACTION COMPLAINT Case 2:16-cv-08338 Document 1 Filed 11/09/16 Page 4 of 32 Page ID #:4 1 more than 100 class members, are citizens of states different from the state of 2 Defendant. 3 13. This Court has personal jurisdiction over Defendant because Defendant 4 has sufficient minimum contacts in California or otherwise intentionally did avail 5 itself of the markets within California, through its sale of the Products in California 6 and to California consumers. 7 14. Venue is proper in this District pursuant to 28 U.S.C. 1391(a)(1) because 8 Defendant regularly conducts business throughout this District, and a substantial part 9 of the events and/or omissions giving rise to this action occurred in this District. 10 PARTIES 11 15. Plaintiff Jason Saidian is a citizen of California, residing in Los Angeles 12 County. In 2015, Mr. Saidian purchased, inter alia, the Glazed Raspberry Filled, the 13 Chocolate Iced Raspberry Filled, the Maple Iced Glazed, and the Glazed Blueberry 14 Cake donuts from a Krispy Kreme store in Santa Monica, California. Mr. Saidian 15 purchased the Products, reasonably relying on the Defendant’s representations about 16 the Products and believing that the each of Products he purchased contained its 17 Premium Ingredient, as represented. Mr. Saidian would not have purchased the 18 Products or would have paid significantly less for the Products had he known that the 19 Products did not contain their Premium Ingredients. Mr. Saidian therefore suffered 20 injury in fact and lost money as a result of Defendant’s misleading, false, unfair, and 21 fraudulent practices, as described herein. After Mr. Saidian learned that the Products 22 do not contain their Premium Ingredients, he ceased purchasing and consuming the 23 Products, and retained counsel. Mr. Saidian is likely to purchase the Products in the 24 future if they each were reformulated to include their Premium Ingredients. 25 16. Defendant Krispy Kreme Doughnuts, Inc. is a corporation incorporated 26 in North Carolina, with its principal place of business in Winston-Salem, North 27 Carolina. Krispy Kreme directly and/or through its agents, formulates, manufactures, 28 4 CLASS ACTION COMPLAINT Case 2:16-cv-08338 Document 1 Filed 11/09/16 Page 5 of 32 Page ID #:5 1 markets, distributes, and sells the Products nationwide, including in California. 2 Krispy Kreme has maintained substantial distribution and sales in this District. 3 FACTUAL ALLEGATIONS 4 A. Background 5 17. At all relevant times, Defendant has formulated, manufactured, marketed 6 and sold the Products across California and the United States. The Products are sold, 7 inter alia, over the counter at Krispy Kreme company and franchise stores, in at least 8 the following varieties: 9 18. Raspberry Products: 10 a. Chocolate Iced Raspberry Filled;2 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 http://krispykreme.com/menu/Doughnuts/Chocolate-Iced-Raspberry-Filled (last visited on 28 11/09/2016). 5 CLASS ACTION COMPLAINT Case 2:16-cv-08338 Document 1 Filed 11/09/16 Page 6 of 32 Page ID #:6 1 b. Glazed Raspberry Filled.3 2 3 4 5 6 7 8 9 10 11 12 13 14 19. Maple Products: 15 a. Maple Iced Glazed;4 16 17 18 19 20 21 22 23 24 25 26 27 3 http://krispykreme.com/menu/Doughnuts/Glazed-Raspberry-Filled (last visited on 11/09/2016). 28 4 http://krispykreme.com/menu/Doughnuts/Maple-Iced (last visited on 11/09/2016). 6 CLASS ACTION COMPLAINT Case 2:16-cv-08338 Document 1 Filed 11/09/16 Page 7 of 32 Page ID #:7 1 2 b. Maple Bar.5 3 4 5 6 7 8 9 10 11 12 13 14 15 20. Blueberry Products: 16 a. Glazed Blueberry Cake (doughnuts);6 17 18 19 20 21 22 23 24 25 26 5 http://www.birthdaydealsallmonth.com/wp-content/uploads/2015/01/IMG_20150106_064018.jpg (last visited on 11/09/2016). 27 6 https://www.krispykreme.com/menu/Doughnuts/Glazed-Blueberry-Cake (last visited on 28 11/09/2016). 7 CLASS ACTION COMPLAINT Case 2:16-cv-08338 Document 1 Filed 11/09/16 Page 8 of 32 Page ID #:8 1 2 b. Glazed Blueberry Cake (doughnut holes).7 3 4 5 6 7 8 9 10 11 12 13 14 15 21. Defendant markets and sells the Products, inter alia, over the counter at 16 its Krispy Kreme company and franchise stores. The donuts sold in-store by 17 Defendant are displayed in a tray behind a glass counter, along with a small placard 18 in front of each tray that provides the name of the donut variety.

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