Case 2:19-cv-01116-TSZ Document 21 Filed 09/27/19 Page 1 of 101 1 HON. THOMAS S. ZILLY 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE WESTERN DISTRICT OF WASHINGTON AT SEATTLE 8 RYAN DIAZ, JARED THOMPSON, ARIEL NO. 2:19-cv-01116-TSZ 9 ENRIQUEZ, PAUL BARR, JOHN RIOS, DAVID GUY, LISANDRO LIZARDO, CHRIS PLAINTIFFS’ FIRST AMENDED 10 LUEBCKE, ROBERT FOUCHA, NICHOLAS CLASS ACTION COMPLAINT YOCHHEIM, ALEC COLLINS, ZACKERY 11 REED, GRANT HOELSCHER, MICHAEL JURY TRIAL DEMANDED OREN, NATHAN AIMSWORTH, JASON 12 COFFEY-WOLFGANG, ERIC WILSON, LYDIA DELOACH, 13 Plaintiffs, v. 14 NINTENDO OF AMERICA, INC., 15 Defendant. 16 TOUSLEY BRAIN STEPHENS PLLC CHIMICLES SCHWARTZ KRINER 17 Kim D. Stephens, WSBA #11984 & DONALDSON-SMITH LLP Jason T. Dennett, WSBA #30686 Benjamin F. Johns (pro hac vice) 18 Kaleigh N.B. Powell, WSBA #52684 Andrew W. Ferich (pro hac vice) 1700 Seventh Avenue, Suite 2200 Alex M. Kashurba (pro hac vice) 19 Seattle, Washington 98101 361 West Lancaster Avenue Telephone: 206-682-5600 Haverford, PA 19041 20 Fax: 206-682-2992 Telephone: 610-642-8500 [email protected] Fax: 610-649-3633 21 [email protected] [email protected] [email protected] [email protected] 22 [email protected] 23 Interim Co-Lead Counsel for Plaintiffs TOUSLEY BRAIN STEPHENS PLLC 1700 Seventh Avenue, Suite 2200 FIRST AMENDED CLASS ACTION COMPLAINT Seattle, Washington 98101 TEL. 206.682.5600 FAX 206.682.2992 Case 2:19-cv-01116-TSZ Document 21 Filed 09/27/19 Page 2 of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x)$; 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Case 2:19-cv-01116-TSZ Document 21 Filed 09/27/19 Page 6 of 101 1 FIRST AMENDED CLASS ACTION COMPLAINT 2 Plaintiffs Ryan Diaz, Jared Thompson, Ariel Enriquez, Paul Barr, John Rios, David Guy, 3 Lisandro Lizardo, Chris Luebcke, Robert Foucha, Nicholas Yochheim, Alec Collins, Zackery 4 Reed, Grant Hoelscher, Michael Oren, Nathan Aimsworth, Jason Coffey-Wolfgang, Eric Wilson, 5 Lydia DeLoach, individually, and on behalf of all others similarly situated, by and through 6 counsel, bring this action against Defendant Nintendo of America, Inc. (“Nintendo”). Plaintiffs’ 7 allegations herein are based upon personal knowledge and belief as to their own acts and upon 8 the investigation of their counsel and information and belief as to all other matters. 9 INTRODUCTION 10 1. This is a class action lawsuit brought against Nintendo by Plaintiffs on behalf of 11 themselves and similarly situated consumers who purchased Nintendo Switch game systems, 12 including the original Nintendo Switch and the new Nintendo Switch Lite, as well as the 13 standalone Joy-Con controllers (collectively referred to herein as “Switch”). 14 2. The Switch is manufactured, marketed, and sold by Nintendo. The initial Switch 15 was first made available for purchase in the United States on March 3, 2017. Prior to that date, on 16 January 13, 2017, Nintendo hosted a Launch Event, the video of which is widely available on 17 YouTube (the “Launch Event”).1 Several Nintendo executives touted the durability and features 18 of the Joy-Con controllers at the Launch Event. For example, Reggie Fils-Amie, the President and 19 COO of Nintendo of America, described them as “amazing controllers [that] combine all the 20 gameplay innovations that Nintendo invented, and adds to it.”2 Yoshiaki Koizumi, the Nintendo 21 22 23 1 https://www.youtube.com/watch?v=JsiRY521Nis (last visited Sept. 26, 2019). 2 Id. at 59:40. TOUSLEY BRAIN STEPHENS PLLC 1700 Seventh Avenue, Suite 2200 FIRST AMENDED CLASS ACTION COMPLAINT - 1 Seattle, Washington 98101 TEL. 206.682.5600 FAX 206.682.2992 Case 2:19-cv-01116-TSZ Document 21 Filed 09/27/19 Page 7 of 101 6ZLWFK *HQHUDO 3URGXFHU UHPDUNHG WKDW ³HDFK MR\FRQ FDQ EH XVHG DV D IXOO\IXQFWLRQLQJ LQGLYLGXDOFRQWUROOHU´ &RQWUDU\WRWKHVHFODLPVKRZHYHUWKH6ZLWFKLVGHIHFWLYH6SHFLILFDOO\WKH-R\ &RQ MR\VWLFN FRQWUROOHUV WKDW DUH XVHG WR RSHUDWH WKH 6ZLWFK FRQWDLQ D GHIHFW WKDW UHVXOWV LQ FKDUDFWHUVRUJDPHSOD\PRYLQJRQWKHVFUHHQZLWKRXWXVHUFRPPDQGRUPDQXDORSHUDWLRQRIWKH MR\VWLFN ³'ULIWLQJ´RUWKH³'ULIW'HIHFW´ 7KLVGHIHFWVLJQLILFDQWO\LQWHUIHUHVZLWKJDPHSOD\ DQGWKXVFRPSURPLVHVWKH6ZLWFKDQG-R\&RQFRQWUROOHU¶VFRUHIXQFWLRQDOLW\ %DVHGRQDQDO\VLVFRQGXFWHGE\3ODLQWLIIV¶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±WKH6ZLWFK/LWH±ZKLFKKDVQRQUHPRYDEOHMR\VWLFNVDQGFRQWUROOHUVWKDW Id.