Case 3:16-cv-04958-WHO Document 92 Filed 09/14/17 Page 1 of 82 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 Counsel for Plaintiffs and the Putative Class 10 UNITED STATES DISTRICT COURT 11 NORTHERN DISTRICT OF CALIFORNIA 12 Case No.: 3:16-cv-04958-WHO (JSC) DEBBIE KROMMENHOCK and 13 STEPHEN HADLEY, on behalf of CLASS ACTION 14 themselves, all others similarly situated, and the general public, 15 SECOND AMENDED COMPLAINT FOR VIOLATIONS OF CALIFORNIA’S 16 Plaintiffs, FALSE ADVERITSING LAW, 17 CONSUMERS LEGAL REMEDIES ACT, v. & UNFAIR COMPETITION LAW; AND 18 BREACH OF EXPRESS & IMPLIED POST FOODS LLC, 19 WARRANTIES 20 Defendant. DEMAND FOR JURY TRIAL 21 22 23 24 25 26 27 28 Krommenhock et al. v. Post Foods LLC, Case No. 3:16-cv-04958-WHO (JSC) SECOND AMENDED CLASS ACTION COMPLAINT Case 3:16-cv-04958-WHO Document 92 Filed 09/14/17 Page 2 of 82 1 TABLE OF CONTENTS 2 3 INTRODUCTION .................................................................................................................... 1 4 THE PARTIES ......................................................................................................................... 1 5 JURISDICTION AND VENUE .............................................................................................. 2 6 7 FACTS ..................................................................................................................................... 2 8 A. There Has Been a Recent Rise in Human Sugar Consumption .......................... 2 9 10 B. The Body’s Physiological Response to Excess Sugar Consumption .................. 6 11 1. The Body’s Response to Glucose ............................................................. 6 12 2. The Body’s Response to Fructose ............................................................. 9 13 14 3. The Addiction Response ......................................................................... 11 15 C. There Has Been a Dramatic Rise in Obesity & Chronic Disease That 16 Parallels the Rise in Human Sugar Consumption ............................................. 11 17 D. There is Substantial Scientific Evidence That Excess Sugar 18 Consumption Causes Metabolic Syndrome, Cardiovascular Disease, 19 Type 2 Diabetes, and Other Morbidity .............................................................. 12 20 1. Excess Sugar Consumption Causes Metabolic Syndrome ..................... 13 21 2. Excess Sugar Consumption Causes Type 2 Diabetes ............................. 16 22 23 3. Excess Sugar Consumption Causes Cardiovascular Disease ................. 20 24 4. Excess Sugar Consumption Causes Liver Disease ................................. 22 25 26 5. Excess Sugar Consumption Causes Obesity ........................................... 23 27 6. Excess Sugar Consumption Causes Inflammation ................................. 27 28 i Krommenhock et al. v. Post Foods LLC, Case No. 3:16-cv-04958-WHO (JSC) SECOND AMENDED CLASS ACTION COMPLAINT Case 3:16-cv-04958-WHO Document 92 Filed 09/14/17 Page 3 of 82 1 7. Excess Sugar Consumption Causes High Blood Triglycerides and Abnormal Cholesterol Levels ........................................................... 29 2 3 8. Excess Sugar Consumption is Associated with Hypertension................ 32 4 9. Excess Sugar Consumption is Associated with Alzheimer’s 5 Disease, Dementia, and Cognitive Decline ............................................. 35 6 10. Excess Sugar Consumption is Linked to Some Cancers ........................ 36 7 8 E. There is Substantial Evidence That Consuming Artificial Trans Fat— Found in Some Post Cereals—is Detrimental to Health ................................... 36 9 10 POST’S MARKETING & SALE OF HIGH-SUGAR CEREALS ....................................... 39 11 A. Post Great Grains Cereals .................................................................................. 43 12 1. Blueberry Morning .................................................................................. 44 13 2. Cranberry Almond Crunch ..................................................................... 45 14 3. Banana Nut Crunch ................................................................................. 47 4. Raisins, Dates & Pecans ......................................................................... 49 15 5. Crunchy Pecans ...................................................................................... 51 16 6. Blueberry Pomegranate .......................................................................... 53 7. Protein Blend: Honey, Oats & Seeds ...................................................... 55 17 8. Protein Blend: Cinnamon Hazelnut ........................................................ 58 18 B. Post Honey Bunches of Oats Cereal and Granola ............................................. 61 19 1. Honey Roasted ........................................................................................ 61 20 2. With Almonds .......................................................................................... 65 21 3. Raisin Medley .......................................................................................... 70 4. With Pecan Bunches ................................................................................ 71 22 5. With Cinnamon Bunches ......................................................................... 73 23 6. With Vanilla Bunches .............................................................................. 76 7. With Apples & Cinnamon Bunches ......................................................... 78 24 8. With Real Strawberries ........................................................................... 79 25 9. Fruit Blends – Banana Blueberry ........................................................... 81 10. Fruit Blends – Peach Raspberry ............................................................. 83 26 11. Tropical Blends – Mango Coconut ......................................................... 84 27 12. Whole Grain Honey Crunch ................................................................... 86 13. Whole Grain with Vanilla Bunches ......................................................... 87 28 ii Krommenhock et al. v. Post Foods LLC, Case No. 3:16-cv-04958-WHO (JSC) SECOND AMENDED CLASS ACTION COMPLAINT Case 3:16-cv-04958-WHO Document 92 Filed 09/14/17 Page 4 of 82 1 14. Greek Honey Crunch ............................................................................... 88 15. Greek Mixed Berry .................................................................................. 89 2 16. Granola – Honey Roasted ....................................................................... 90 3 17. Granola – Raspberry & Cinnamon ......................................................... 91 18. Protein Granola with Dark Chocolate ................................................... 92 4 5 C. Post Shredded Wheat Cereal ............................................................................. 92 6 1. Honey Nut ................................................................................................ 92 2. Crunch! .................................................................................................... 95 7 8 D. Post Single Cereals ............................................................................................ 96 9 1. Raisin Bran .............................................................................................. 96 2. Bran Flakes ............................................................................................. 99 10 3. Alpha-Bits .............................................................................................. 100 11 4. Honeycomb ............................................................................................ 102 5. Waffle Crisp........................................................................................... 103 12 13 POST’S UNLAWFUL ACTS AND PRACTICES ............................................................. 104 14 A. Post Marketed and Continues to Market its Cereals with Health and 15 Wellness Claims that are Deceptive in Light of the Cereals’ High 16 Sugar Content .................................................................................................. 104 17 1. Post Affirmatively Misrepresents that Some High-Sugar 18 Cereals are “Healthy,” “Nutritious,” or “Wholesome” ......................... 104 19 2. Post Affirmatively Misrepresents that Consuming Some of its 20 High-Sugar Cereals Will Promote Bodily Health, Prevention of Disease, or Weight Loss ........................................................................ 107 21 22 3. Even When Not Stating So Expressly, Post Strongly Suggests 23 Its High-Sugar Cereals are Healthy ...................................................... 108 24 a. Post Touts Its High-Sugar Cereals’ Whole Grain, Fiber, 25 and “Real” Ingredient Content to Distract From Their High Added Sugar Content ......................................................... 109 26 27 28 iii Krommenhock et al. v. Post Foods LLC, Case No. 3:16-cv-04958-WHO (JSC) SECOND AMENDED CLASS ACTION COMPLAINT Case 3:16-cv-04958-WHO Document 92 Filed 09/14/17 Page 5 of 82 1 b. Post Leverages a Deceptive Industry “Certification” Program—the Whole Grains Council